Walmart Shareholders

18 • Walmart Shareholders • 2022 Democrat-Gazette Staff A product display redesign being tested at Walmart Inc.'s Springdale incubator store features layouts and interactive digital displays meant to create "a destination where customers want to spend their time." e Bentonville-based retailer debuted the changes on Jan. 27 at Store 4108 as the second phase of a redesign effort it began in September 2020. Walmart uses the store as a testing ground for new ideas that may later be implemented more widely across its more than 4,700 stores in the United States. Part one of the redesign entailed prominent signs marking the store's sections and a new layout with navigation enhanced through Walmart's app. With "overwhelmingly positive" feedback from customers, nearly 1,000 stores have been renovated under Phase 1, the company said. While Phase 1 was still in the incubator stage, it earned Walmart a spot among 25 finalists — out of 62 submissions — in the Retail Design Institute's 50th International Design Competition in October. is second phase, which Walmart is calling "Time Well Spent," aims to make Walmart "a destination where customers want to spend their time," said Alvis Washington, Walmart's vice president of marketing in store design, innovation and experience. "We're amplifying the physical, human and digital design elements in our stores to inspire customers and elevate the experience," Washington said. e physical changes include improved lighting and a layout that creates more space in stores, Washington said. Other changes include corner displays and brand shops, he said. "Our visual merchandising experts have highlighted exciting brands and created engaging experiences that bring to life the human element," Washington said. A short video on Walmart's news website shows GAP brand bedding on a made-up bed complete with throw pillows. e video also shows Reebok products displayed in a large area under their own label, almost like a store within a store. Washington said that concept will be carried over into other departments such as the baby department, where strollers and car seats are taken out of boxes to allow for "test drives." And new parents "will be greeted by elevated displays showcasing all the items needed to create a dream nursery," he said. Apparel will be arranged to highlight national and Walmart- owned brands, Washington said, and beauty "will also showcase exciting shops where new and trending items are given a home." Technological innovations such as QR codes and digital displays run throughout the redesigned store, helping to integrate the in-store and online shopping experience. As an example, Washington said, "in our pets area, a customer may scan the QR code to find additional dog bed options, learn about Walmart's pet insurance service options or have a 20-pound bag of kibble delivered to their door." Washington said early customer feedback has been positive. "We'll continue to test, learn and make changes based on what our customers tell us," he said. Critics have compared some of the redesign elements with the merchandising approach employed by rival Target, and used for years by department stores. Sanford Stein, founder of LinkedIn platform Retail Speak, told Retail Dive that the strategies that big-box discounters like Walmart and Target are using are what he calls "the vocabulary of the department store." "I refer to it as solution- based rather than product-based marketing," he told the industry news outlet. "It's something that a good department store of the past did well, and it's increasingly important as sales continue to shi more online." Carol Spieckerman, a retail consultant and president of Spieckerman Retail, said many of the test store's upgrades, such as improved apparel displays, enhanced navigation and traffic flows, "should resonate with Walmart shoppers." "Some of the ideas may not be novel compared to other retailers, yet they will stand out in the Walmart environment," Spieckerman said. ere's a chance the store's heavy use of technology will intimidate some less tech-savvy customers. But Spieckerman said that even if the tests fall flat with traditional shoppers, "they may resonate with the younger shoppers who are critical to Walmart's long-term success." "Either way," she said, "Walmart is no doubt learning a lot from the tests both visible and behind-the-scenes that are being incubated in the store. Elements that take hold can be extracted and implemented in other locations." Walmart trying out new design, digital displays Goal is making customers want to linger, exec states

• Cover