ClickZ Walmart Insights Newsletter - 02.06.2025

Plus: Walmart vs. Amazon—who’s winning the retail race?💡

Author

Rafe Houston
February 06, 2025

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Welcome to Walmart Insights, your go-to newsletter for updates and analysis on the trends shaping retail and eCommerce at Walmart.

Editor’s Pick🌟

ECOMMERCE INNOVATION INSIGHTS

Amazon’s “walled garden” has kept brands guessing—until now. Fospha’s latest research reveals the true impact of DTC ads on Amazon sales by measuring Unified ROAS (Shopify + Amazon revenue):

🔹 TikTok: +80% higher ROAS when Amazon is included

🔹 Meta: +46% higher ROAS (a major shift at scale)

Paid Social drives purchase intent—consumers click today but buy on Amazon later. Now, for the first time, it’s measurable.

Specialty Bites 🍪

PHYSICAL EXPANSION

Walmart Canada is investing approximately C$6.5 billion (US$4.51 billion) to build new stores and enhance its supply chain, marking its largest investment since entering the Canadian market nearly 30 years ago. The expansion includes constructing dozens of new stores, starting with five new supercenters in Ontario and Alberta by 2027, and modernizing distribution centers. This initiative aims to improve both online and in-store experiences for customers. Additionally, Walmart Canada plans to sell its fleet business to Canada Cartage, a provider of fleet services.

PHYSICAL STORES

Amazon and Walmart are revitalizing underutilized mall spaces to enhance their operations. Walmart recently acquired Monroeville Mall near Pittsburgh for $34 million, with plans to redevelop it into a mixed-use space featuring retail outlets, dining options, and potentially residential units. This initiative aims to create a multifaceted community hub, catering to diverse consumer needs.

Concurrently, Amazon has been repurposing struggling malls into distribution centers, converting former mall locations in Baton Rouge, Louisiana; Knoxville, Tennessee; and Worcester, Massachusetts, into fulfillment hubs. Between 2016 and 2019, Amazon transformed approximately 25 malls, and has also explored converting former department stores into distribution hubs. This strategy enhances Amazon's logistics network by utilizing existing structures to improve delivery efficiency.

These developments reflect a broader trend of transforming traditional retail spaces to meet evolving market demands, integrating commerce, logistics, and community functions.

CORPORATE MOVES

Walmart is restructuring its corporate operations by eliminating hundreds of positions and closing its office in Charlotte, North Carolina. The company is consolidating roles into its main hubs in Bentonville, Arkansas, and Sunnyvale, California, and has asked employees in smaller offices, such as those in Hoboken, New Jersey, to relocate to these primary locations. This move is part of a broader strategy initiated in May 2024 to enhance collaboration and efficiency by centralizing operations. Walmart has invested in a new 350-acre campus in Bentonville and is expanding office spaces in Sunnyvale, Bellevue, and Hoboken. Affected employees will be offered relocation support or severance packages.

Influencer Corner 📣

Daniela Morosini on LinkedIn: What could a slimmed-down Estée Lauder Companies look like?

Earlier this week, Bloomberg reported that the company has hired an advisory firm to undertake a strategic review of its portfolio. The ELC we know today was built by buying brands (it has more 20) and for much of the 2010s, the more-is-more strategy worked. This was the heyday of indie beauty, and exciting, founder-led brands could fetch quite a premium — Too Faced was acquired for $1.4 billion.

Alex Cooper on LinkedIn: Here's how to use psychology to design static ads that stand out in the feed.

🧠I asked psychology expert Sarah Levinger for her take and I was not expecting this answer...

www.linkedin.com/posts/alexgoughcooper_heres-how-to-use-psychology-to-design-static-activity-7290492013219663873-2YQE?utm_source=share&utm_medium=member_desktop

Optimization Hub ⚙️

DIGITAL RETAIL INNOVATION

Gen Z's digital native status is reshaping retail media. Brands must embrace multichannel strategies, personalizing experiences and blending entertainment with values. By leveraging algorithms and data, brands can create meaningful connections, driving long-term loyalty and setting the standard for future retail innovation and strategic relevance in customer engagement.

DIGITAL MARKETING

TikTok introduces GMV Max, an AI-driven tool to optimize advertising for retailers. This innovation automates campaign management, enhancing ad efficiency and profitability, while adapting to TikTok Shop's ecosystem. GMV Max streamlines ad operations, enabling businesses to focus on growth, reflecting strategic advancement in retail advertising.

Social Media Marketing

📍 Seattle, Washington, USA

Global Marketing

📍 Los Angeles, CA, USA

Marketing & Comms

 📍 Austin, TX, USA

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