Walmart (WMT) is taking the fight to Amazon (AMZN) and eBay (EBAY) as it looks to offer retailers another avenue to sell their goods online in the U.K. The retail giant is looking to add U.K. retailers to its online marketplace as it seeks to provide consumers an alternative e-commerce platform.
According to Bloomberg, British sellers will be able to target more than 120 million people who visit Walmart.com. In a bid to attract more sellers to its platform, Walmart intends to offer guaranteed two-day shipping services to the US and access to other services for generating sales.
Walmart’s Robust Network
Walmart has already attracted an array of UK retailers to its e-commerce platform, including wearable technology firm Statsports, BuyBox, and generalist retailer Pertemba. The giant retailer relies on its vast network of stores to attract more retailers and build out its e-Commerce business.
The brick and mortar stores have emerged as crucial launch pads for delivery drones and automated warehouses from where Walmart furnishes online orders. Conversely, the stores could eventually act as packaging and shipping centers for goods from independent companies sold on the third-party marketplace.
Wall Street’s Take
The Street is bullish about the stock, with a Strong Buy consensus rating, based on 25 Buys and five Holds. The average Walmart price target of $157.3 implies 31.7% upside potential from current levels.
TipRanks data shows that financial blogger opinions are 90% Bullish on WMT, compared to a sector average of 68%.
Key Takeaway for Investors
The future of retail is in e-commerce, an area where Walmart is investing big as it looks to take on Amazon and the likes. The retailer boasts a competitive edge in the form of a robust brick and mortar store network that could act as reliable fulfillment centers. Consequently, the retailer only has to attract more retailers to its third-party marketplace to offer an alternative e-commerce platform.
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