Retail giant Walmart takes over technology firm Volt Systems, specializing in omnichannel operations.
Walmart has announced its acquisition of Volt Systems, a software firm specializing in vendor management and product tracking. The move is strategically aligned with Walmart's omnichannel shopping strategy, aiming to enhance real-time store insights and decision-making capabilities.
The acquisition will encompass Volt System's talent, technology, and customer agreements, as per a press release from the retail giant. The terms of the deal remain undisclosed. Walmart, in expressing its rationale, stated that the acquisition "affirms Walmart's continued investment in technology and innovation that enables us to better anticipate customer demand."
Over the years, Walmart has been augmenting its digital strategy, transitioning from a focus on premium digital brands to building capabilities around omnichannel shopping. This strategy provides Walmart, with its extensive store presence covering much of the country's population, an advantage over e-commerce behemoths like Amazon. During the pandemic, Walmart's shift to an omnichannel specialist was particularly evident, with curbside and store pickup sales surging amid extended periods of social distancing.
In contrast to high-profile acquisitions like the Jet.com deal, which Walmart later shut down, or the acquisition of Modcloth, which Walmart sold soon after, this move underscores Walmart's strategy of making quieter, strategic investments in its omnichannel capabilities. Brett Biggs, Walmart's chief financial officer, emphasized this approach at a conference in March, stating, "The businesses that we continue to grow, whether... pick-up, delivery, the work we're doing in in-home, it's all of these different ways that customers can shop with us."
Volt Systems offers solutions for navigating the complexities of an omnichannel universe, with software services geared towards omnichannel engagement, vendor management, and product tracking. Walmart highlighted that Volt's technology will aid in optimizing product availability and supply chain transparency, crucial elements for omnichannel fulfillment strategies such as buy-online-pickup-in-store (BOPIS), same-day delivery, and seamless returns.
The acquisition is a step forward in Walmart's efforts to reduce stockouts, improve replenishment efficiency, and elevate customer satisfaction across all channels by leveraging more precise data on vendor operations and product movement. This move is part of Walmart's broader goal of leveraging technology to offer a more connected, convenient shopping experience, ensuring retail competitiveness.
Walmart's other recent investments include new augmented reality shopping tools for customers and partnerships with firms like Symbotic, which bring automated supply chain technology to Walmart's regional distribution centers. The retailer is also developing "next-generation" fulfillment centers featuring automated technology for streamlined storage and product retrieval.
At the store level, Walmart has established test stores to quickly assess new omnichannel technologies and improvement processes. These efforts aim to expedite inventory movement to the sales floor and boost in-store pickup rates, enhancing the overall customer experience.
- The acquisition of Volt Systems by Walmart will not only integrate Volt's talent and technology but also its customer agreements, as per their press release, aligning with Walmart's omnichannel strategy.
- Walmart's investment in Volt Systems, a firm specializing in vendor management and product tracking, affirms their continued commitment to technology and innovation.
- The omnichannel universe Volt Systems navigates offers solutions for Walmart, particularly in optimizing product availability, supply chain transparency, and enhancing omnichannel fulfillment strategies.
- Apart from its acquisition of Volt Systems, Walmart has been investing in technology, such as developing next-generation fulfillment centers with automated technology and establishing test stores to assess new omnichannel technologies.
- The strategic acquisition of Volt Systems and other investments in technology are part of Walmart's broader goal to leverage technology for a more connected, convenient shopping experience, ensuring retail competitiveness during a pandemic-affected market.
