Back to top

Image: Bigstock

Will Walmart's Alliance With KIDBOX Better Its Online Game?

Read MoreHide Full Article

Walmart Inc. (WMT - Free Report) is leaving no stone unturned to expand apparel offerings and enhance its e-commerce operations to stay firm against Amazon (AMZN - Free Report) . The world’s largest retailer unveiled a collaboration with KIDBOX, which will provide Walmart.com customers access to a unique and curated stylebox for children.

Also, customers can opt to receive up to six styleboxes on a seasonal basis (like back-to-school and holiday), with no styling costs involved. With the latest Walmart KIDBOX stylebox, Walmart.com shoppers will get personalized style from more than 120 superior brands for kids such as C&C California, BCBG, Puma and Butter Super Soft.

Further, the stylebox will offer four to five fashion items at a compelling price of nearly $48, ranging from sweaters to dresses, and even graphic t-shirts. So, customers can now place orders for the Walmart KIDBOX stylebox at Walmart.com by answering a short style quiz for their respective kids. The company’s alliance with KIDBOX is likely to further enrich its vast offerings for kids, which include brands like Betsey Johnson, Children’s Place (PLCE - Free Report) and Wonder Nation, among others.

Walmart’s E-Commerce Moves on Track

This move reflects Walmart’s commitment toward expanding its apparel offerings and improving its online game. Notably, the big-box retailer has long been trying all means to evolve with the changing consumer environment, by undertaking e-commerce initiatives like buyouts, alliances, and improved delivery and payment systems. To this end, the company’s partnership with Microsoft (MSFT - Free Report) is likely to strengthen its digital capabilities.

Also, Walmart’s buyout of 77% stake in Flipkart is likely to bolster its e-commerce sales in the long run. Apart from this, buyouts of ShoeBuy, Moosejaw, Bonobos, ModCloth and Jet.com, and deals with Rakuten, and Lord and Taylor underscore the company’s intention to build an impressive digital brand portfolio. The company’s plans to further develop its website, and improve check-out and payment processes highlight its initiatives to accelerate online business and make shopping easier.

Additionally, Walmart is making aggressive efforts to expand in the booming online grocery space, which was a major contributor to its e-commerce sales in the fourth quarter of fiscal 2019. Backed by such endeavors, the company’s U.S. e-commerce sales surged 43% during the quarter. E-commerce sales improved on the back of enhanced online assortments and increased grocery pickups. Further, management stated that higher market share in core categories like toys and grocery fueled e-commerce sales.



These factors keep management encouraged about achieving 35% U.S. e-commerce sales growth in fiscal 2020. 

We believe that these factors will continue driving investors’ optimism in this Zacks Rank #3 (Hold) stock that has returned 6.4% in the past three months, outpacing the industry’s growth of 4.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Will you retire a millionaire?


One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”

Click to get it free >>