Walmart exists to serve, said its CEO, David Guggina.
Through its “assortment, price and experience,” the company aims to help people live a better life, prioritizing convenience and affordability, Guggina said at the Fast Company Innovation Festival on Wednesday. High-speed delivery options, an investment in AI and affordable fashion are key methods for Walmart to become a lifestyle beyond just being an option.
“Folks want to save money and they also want to save time,” Guggina said.
Around 150 million customers visit Walmart every week, online and in-store, David Guggina said. Walmart’s delivery service can reach 96% of U.S. households in three hours or less, and 60% in 30 minutes or less by leveraging its 3,569 supercenters across the United States.
Last year, Walmart launched Sparky, an AI agent on its website and app. The assistant can find products through conversational descriptions rather than keywords, and even recommend products based on a photo of a situation.
Guggina’s coworker took a picture of his lawn and asked Sparky for help, Guggina said. “Sparky recommended seeds, fertilizer, and different miracle growth type products. Everything he would need to take care of his lawn…That context helped him, you know, find items that he wouldn’t have otherwise known to utilize. And I think that’s really important,” Guggina added.
The value of the average online order is 40% higher since implementing this agent according to Guggina. Refining searches in Walmart’s online universe and finding exactly what customers need leads to “new ways for Walmart to show up” for Walmart shoppers, he added.
Shoppers are also discovering products on Walmart Marketplace which saw a 52% growth in the second quarter. Walmart’s global ecommerce sales grew by 23% in the second quarter, led by store-fulfilled pickup and delivery and marketplace, according to its earnings report.
In August, Walmart launched Scenario, its new women’s fashion brand. Most items are below $25, and 100% cashmere sweaters are between $45-$65, a fraction of the price of other brands. What Guggina describes as high-quality but still at an affordable price is “reshaping how customers think about Walmart,” he said.
Guggina said investing in advanced robots and modernized software is increasing Walmart’s capacity and its supply chain is becoming faster. Maintaining speed is a factor that contributes to Walmart’s goal to become the first and best option for customers across the country, and beyond that, a company consumers can trust.
