Issue link: https://www.epageflip.net/i/832311
NWA DemocrAt-GAzette/FLIP PUTTHOFF John Craft (left) makes a purchase with cashier Kendall Stewart at the Walmart convenience store near the Walmart Supercenter at Pleasant Crossing in Rogers. Wal-Mart Stores Inc. is constantly looking for ways to improve in-store shopping in hopes of enticing customers to continue walking through the doors of its more than 4,600 U.S. locations. One potential solution could be the use of unmanned aircraft systems, or drones, as a way to retrieve packages from one part of the store and deliver them to customers in another. Wal-Mart received patent approval from the U.S. government in April for what it described as a "method to carry an item within a retail shopping facility." The retailer's plans — and reasons for developing an in-store drone system to pick up and drop off inventory — were outlined in a patent application filed Sept. 13, 2016, and published March 16, according to patent-approval docu- ments. "With increasing competition from non-traditional shopping mechanisms, such as online shopping provided by e-commerce merchants and alternative store formats, it can be important for 'brick and mortar' retailers to focus on improving the overall customer expe- rience and/or convenience," Wal-Mart wrote in its patent application. According to the retailer, the airborne drone could be used as a tool to help customers to quickly collect items they've purchased, or intend to purchase, that may be located in a back room or distant aisle. Wal-Mart said there may not always be enough employees available to assist customers with these items. It also could take workers a long time to walk to the back room and retrieve prod- ucts. Either case slows the process for shoppers and contributes to "reduced customer satisfaction." So Wal-Mart could call on drones to help collect and deliver items. A central computer system would dispatch and direct an airborne drone, determining its flight path through the store. 12 NWA Democrat-Gazette Walmart Shareholders Thursday, June 1, 2017 Wal-Mart looks at drones ArkANsAs DemocrAt-GAzette Wal-Mart Stores Inc. unveiled a new convenience store in Rogers earlier this year, opening the doors to a building that features an expanded selection of food and drinks. The 2,500-square-foot building is the company's latest fuel station and convenience store concept, according to Ramnik Narsey, a senior vice president for Wal-Mart's U.S. fuel business. The retailer, based in Bentonville, spent about a year developing plans before building the convenience stores in Rogers and Crowley, Texas. The Rogers store, which is at the entrance of a Wal-Mart Supercenter, replaces a kiosk previously at the existing fuel station. The kiosk was manned by an employee and offered a small selection of convenience staples like candy, chips and soft drinks. But Narsey said feedback led the retailer to consider larger store formats the past few years. "Customers were asking us, 'Why don't you offer more?'" Narsey said. Wal-Mart has tested and considered a handful of convenience options in addi- tion to the kiosks, but Narsey believes Wal-Mart has found a good fit with its latest pilot. The Rogers store offers a hot food bar where customers can grab paninis, nachos, hot dogs or sausages. There is a walk-in cooler stocked with domestic, imported and craft beer. The store also includes a soft-serve ice cream machine with multiple flavors. Wal-Mart has even stocked the store with a few grocery staples like milk, eggs, frozen meals and pizzas. In addi- tion, pre-made sandwiches and salads are available. Wal-Mart hopes the variety will lead to more sales. Narsey said value and speed is the goal, offering customers the chance to grab a variety of items quickly and at Wal-Mart prices. "We'll do a little bit of fine-tuning as we go along and get feedback from custom- ers about what they like, what they think we could do better," Narsey said. "But I think this is about the comfortable size." Wal-Mart is hoping to make a bigger push in a convenience store space, which enjoyed a strong year, according to the Association for Convenience and Fuel Retailing. The trade organization published the results of a survey in January in which 68 percent of convenience retail- ers said their fuel sales increased in 2016 and 63 percent said food sales increased. Brian Yarbrough, a retail analyst for Edward Jones, said it's difficult for conve- nience stores to make money on fuel. But Yarbrough said there's a good opportu- nity on the food side for Wal-Mart. "It's a model that works because you have the gas that drives consistent traf- fic and if you get them in the conve- nience store, it's very high margin stuff," Yarbrough said. "But for Wal-Mart, does it move the needle? You could spread a couple thousand across the U.S. and it's probably not going to move the needle because Wal-Mart's revenue base is so big." Retailer tests convenience store ArkANsAs DemocrAt-GAzette See Drones, Page 14 See store, Page 16