In an attempt to inject ‘trendiness’ in its veins, Wal-Mart Stores, Inc. (NYSE:WMT) has appointed Kevin Systrom, a young CEO and co-founer of Facebook Inc (NASDAQ:FB)‘s Instagram on its Board of Directors. Bloomberg’s Julie Hyman reported on this new development and she used the term ‘Bro’ for the youngest board member to emphasize the segment of society that Systrom represents.
There are two homeruns that Wal-Mart Stores, Inc. (NYSE:WMT) is trying to hit with its choice of a young CEO from Facebook Inc (NASDAQ:FB)’s pictures sharing platform. Firstly, it is in line with Wal-Mart Stores, Inc. (NYSE:WMT)’s policy to extend its e-commerce presence and a tech guy on its board accentuates that persona. Hyman mentioned that nearly half of the sales on the Wal-Mart website are made through mobile.
The second homerun that Wal-Mart Stores, Inc. (NYSE:WMT) expects to complete with the addition of a bro from Facebook Inc (NASDAQ:FB) is by expanding the number of customers in the ‘millenial’ segment. Hyman explained this problem using demographics from Kantar Retail.
“[…] Less than 6% of Wal-Mart Stores, Inc. (NYSE:WMT) shoppers are ages 18 to 24 which is not that much different than other grocery stores for example retailers from the other ilk. About 20% of their customers are 65 and older so they definitely skew older. The average age of the Wal-Mart Stores, Inc. (NYSE:WMT) shopper, according to Kantar is 46 years old […],” said Hyman.
However, adding a board member from Facebook Inc (NASDAQ:FB), who the Wal-Mart management thinks is in the same age group as the new targeted consumers, might prove to be of only limited help. Hyman explained that the mere size of the Wal-Mart stores is blocking that road. She said that instead of stocking up on suppllies and going once or twice to a grocery store in a month, the millenals want to make several short trips and an enormous Wal-Mart store takes a lot of time for that kind of shopping, making it less feasible.
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