Walmart Brazil to dump e-commerce to focus on brick & mortar

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Walmart Brazil to dump e-commerce to focus on brick & mortar

On Friday, the 10th of May 2019, the Walmart Brazil had issued a statement saying that the subsidy of United States’ No. 2 retailer would be shutting down its e-commerce operation in Brazil, the largest retail market in South America, in order to center the company’s focus more on to brick and mortar locations, meanwhile transforming floundering hypermarkets into wholesale stores.

Without disclosing further details, the Walmart Brazil said in a statement on Friday (May 10th), “The company is working in a new omnichannel strategy which will be later announced”, as quoted by the Brazilian Newspaper Valor Economico.

The move would likely to attract more and more domestic and international online retailers in light of declined competitions, while Walmart Brazil’s move had also been praised among the analysts, as wholesale through brick and mortar stores had been regaining popularity, as the country had gradually been exiting from a recession.

Nevertheless, part of Walmart Brazil’s decision was largely met with sheer criticism, as it had been vying to deal with steep competition from domestic e-commerce service providers, such as B2W, Magazine Luisa SA and Via Varejo, and the move would cap years of its effort that never really had a chance to take off.