Walmart Stock Rises as Tech Investments Begin to Pay Off

Walmart stock climbed to a 52-week high Monday (July 3) due in part to the company’s tech investments.

Analysts have said that the investments the retail giant made in tech during the pandemic are starting to pay off and are expected to continue doing so, Seeking Alpha reported Monday (July 3).

The technologies mentioned in the report include applications in supply chain, third-party marketplace, advertising and eCommerce — each of which is expected to grow due to Walmart’s investments in recent years.

Other factors contributing to Walmart’s climb — which has seen its stock rise 10.22% year to date — are its value proposition that is attracting shoppers and its geographic coverage across the country, the report said.

One innovation being rolled out by Walmart is a proprietary storage and retrieval system that is featured in its Market Fulfillment Centers (MFCs).

Walmart reported in May that it has opened its second MFC in Bentonville, Arkansas, after launching a proof-of-concept in Salem, New Hampshire, in January 2020.

Both MFCs are powered by Alphabot, a system that uses autonomous carts to retrieve items ordered for online grocery and delivers them to a workstation, where a Walmart associate checks, bags and delivers the order.

“Not only does it enhance the customer experience through quicker, more accurate online order fulfillment, it also provides us the runway to continue growing our business now and in the future,” Ryan Simpson, store manager at the Bentonville location, said at the time.

A month earlier, in April, Walmart debuted a redesigned website and app said to optimize omnichannel experiences.

The digital redesign includes a scrolling feature that is similar to that of social media apps and encourages shoppers to browse the retailer’s product selection.

In a third innovation rolled out this year, Walmart unveiled a B2B procurement website in January.

The Walmart Business site is an eCommerce site and “customer experience” aimed at small and medium-sized businesses (SMBs) and nonprofits, and provides a “curated assortment” of more than 100,000 items, with categorization and navigation designed for institutional shoppers.

“Our focus is to remove complexity in purchasing, lower costs and give our customers more opportunities to serve their customers and communities,” Senior Vice President and General Manager, Walmart Business Ashley Hubka said at the time.