Monday, April 25, 2011

Walmart Just Beat Everyone Out Of The Gate AGAIN


In our last blog post dated April 19 (below), Wal-Mart said their Next-Day Delivery Program was not yet approved, so we felt you had a 90+ day window to become prepared.  Well, thanks to their purposeful misinformation, we were wrong !

On Saturday, April 24, Wal-Mart opened “Walmart To Go” (see Article) starting with NEXT-DAY delivery of groceries in San Jose, California as part of their “Project Titan” (see Article); same as they have been doing in the UK, Mexico and Japan.

This is Super Bad News for Amazon, Safeway, Peapod and your local grocers.  BUT THAT’S JUST THE START OF THIS E-COMMERCE RETAIL REVOLUTION.  After all, Wal-Mart now needs to grow $14 BILLION every year just to stay relevant.  And their new market share has to come from someone else…. like you. 

Can you foresee when everything is delivered by Walmart from their local retail complex with no other local competing stores existing ?  Well, they can.

Wal-Mart has repeatedly stated that “Project Titan” is the beginning of Wal-Mart’s push to become the lead e-commerce retailer worldwide (see Article).  But when you look at the retail landscape objectively, Wal-Mart’s  “Pick Up Today”  and  “Walmart To Go”  offer high consumer convenience that not only increases Wal-Mart’s ONLINE business but takes customers away from competing local stores with Wal-Mart’s significantly lower prices and much higher service levels.  

Wal-Mart just eliminated the consumer’s need to navigate traffic, long cashier line-ups and miles of walking in stores: when they could be golfing, at the ball game or enjoying their family !  Smart People – Wal-Mart recognized and acted upon the obvious consumer needs and wants as well as offset the various problems people experience in shopping at Walmart stores.  And, Wal-Mart’s low in-store prices apply for delivery – approximately 27% less than regular supermarket prices.

NOW THAT’S TOUGH TO BEAT – And of course they planned it this way and are looking for as much lead time as they can get by telling you it’s only a test and only groceries.  BUT THEY ARE ALREADY DELIVERING THEIR ENTIRE RETAIL PRODUCT RANGE IN THE UK, MEXICO AND JAPAN.  So, Walmart To Go is no test and it’s not just groceries in the long run.

HERE’S THE GOOD NEWS – While we had hoped you might beat Wal-Mart “Out-Of-The-Gate” and take the lead position with our patented Rapid Online Order Fulfillment (ROOF) program;  Wal-Mart has demonstrated the future of retail clearly is in Rapid Home Delivery as they did in the UK, Mexico, Japan and now the U.S. 

This Leads You To Two New Opportunities:

1.     Visionary retail leaders will seize the opportunity to improve on Project Titan’s initiatives and become the industry leaders by eclipsing Walmart’s Same-Day Pick Up and Next-Day Delivery with ROOF 1-Hour In-Store Shopping and Delivery, which even Wal-Mart cannot beat. And Wal-Mart probably won’t try to match ROOF for some time to come, thus allowing you to grasp the lead time they were counting on to establish market dominance.

Before Wal-mart opened the Rapid Home Delivery program door thus trouncing the current 3 – 10 day e-commerce common practice, retailers were content with the status quo.  And, as Wal-Mart hopes and expects, these retailers will ignore Walmart To-Go and Wal-Mart's Project Titan initiatives once again, until it is too late. 

2.      Implement a ROOF SuperCyberCenter© (i.e. Virtual SuperCenter = Walmart and Virtual Marketplaces = Amazon and others).  This is a huge new way to leverage ALL your current assets – tangible and intangible - and earn additional profit from participating stores.  

For example, most local and regional grocery stores have completely ignored Home Delivery as Wal-Mart Supercenters began significantly stealing their in-store sales in the late 90’s.  Now, with “Walmart To Go”, they have a major incentive to join your ROOF SuperCyberCenter© – a competitive Rapid Online Order Fulfillment (ROOF) local area consortium in a SuperCyberCenter format, thereby further increasing your sales and profits both in your stores and through their online sales in your ROOF SuperCyberCenters, which are greater in consumer scope than Walmart’s Project Titan.

Due to the now proven importance to Wal-Mart’s future growth of their “Project Titan”, we hope we can start ROOF with you ASAP so as to steal Project Titan’s thunder in the Media.

Thank you,


Tuesday, April 19, 2011

Internet Titans Are Changing E-Commerce Rules

Wal-Mart, in order to become the world’s largest ONLINE retailer has started The Internet “Battle Of The Titans” against Amazon, eBay, Target and others. (See Article)

To do this quickly, Wal-Mart is changing the rules of the e-commerce industry by stepping up speed of delivery from 3 to 10 business days to “Same-Day and Next-Day” that none of Amazon, eBay nor Target (nor anyone else) can realistically match in order to gain overall market share. 

This leaves Bricks-N-Clicks retailers in a fight they can’t win if they continue to use their current, more expensive, e-commerce 3 to 10 Business-Day delivery, thus creating a new wave of “The Living Dead” similar to Borders, Circuit City, Blockbuster, Linens-n-Things  and Office Depot.

Wal-Mart plans to have their onlinePick Up Today” program in all their Supercenters nationwide within 90 days. (See Article)  Next, they “are considering” entering the “ONLINE Next-Day Delivery” arena with their “Project Titanas they are already doing in the U.K., Mexico and Japan, (See Article) thus setting new industry standards everyone else must follow (if they can) or die. 

Competing with “Project Titan’s” massive number of local Wal-Mart stores, huge local inventories and purchasing power will require Bricks-N-Clicks retailers to immediately adopt a new Space Age strategy.

Unfortunately, their current e-commerce distribution systems cannot help Bricks-N-Clicks retailers in the “Same-Day and Next-Day” Battle of the Titans for control of the now powerful retail e-commerce industry, leaving them as the net loser, as these Titans have done many times before. 

Smaller players need to beware.  This is a new industry, with new rules of pricing and customer convenience, way outside the scope and experience of in-house experts or normal retail consultants. 

Single-line Bricks-N-Clicks retailers competing against these multi-line Supercenters and “Marketplace” Titans will no longer attract the traffic needed for significant future growth when consumer demands for further improved selection and convenience are considered.

Inevitably, the ranks of “The Living Dead” will increase for those who cannot adapt quickly.

BUT…There Is A Solution These Titans Cannot Match

ROOF (Rapid Online Order Fulfillment):  In-Store shopping and delivery usually in less than 1-Hour, 24 / 7 / 365 AT DELIVERED PRICES LESS THAN IN-STORE PRICES.  And, it’s 100% turnkey.  ROOF provides a much higher level of service than FedEx, UPS and USPS and is easier to use and at less cost WITH A FULL ARRAY OF TOP LOCAL RETAIL STORES, RESTAURANTS, PHARMACIES & GROCERS, thus outmaneuvering any Supercenter or Marketplace.

ROOF implementation is less costly, easier and more profitable than regular e-commerce methods.  PLUS, ROOF drives more retail sales through your local stores’ cash registers while increasing customer loyalty with Space Age Delivered In A Flash® service.

Simply stated: As in-store sales across the board continue to falter and online sales sky-rocket, doing the “Same-Old-Thing” against “Project Titan” will lead to further decreasing online sales, more store closings and significant job losses.

There can be no question what the consumer wants and where “Project Titan” is trying to go. (See chart below)

None of these Titans have ROOF’s powerful and patented system and marketing tools.  Be there first to capture the consumers’ hearts and minds  – install your ROOF system now to prevent the Internet Titans from luring away your In-Store and Online customers with “Same-Day and Next-Day” service as they intend to do within the next few months

The only risk you have is in doing nothing.

Our brief online slide presentation can be viewed here.   (NOTE:  Our ROOF website is ‘live’ in zip 33180 for demonstration purposes and can be reconfigured to meet your requirements.)

Please let me know a convenient time to discuss your participation.

P.S.  For even greater increased revenue and sales, ask about joining our SuperCyberCenters©.

Thank you,
Gail W. Nichols  - Vice Chair