Walmart Upgrades HQ to Compete in Digital Spaces

Walmart is spending billions on a new headquarters as it takes on digitally native rivals.

The new base of operations, The New York Times (NYT) reported Saturday (June 21), is designed to attract talent and update Walmart’s core philosophy.

As the report pointed out, Walmart got to be where it is by offering the lowest prices. Now, however, it needs to also compete on things like speed and convenience.

During the company’s Associates Week, NYT added, Walmart made several tech-focused announcements, such as a new artificial intelligence (AI) assistant for online shoppers, as well as an expanded version of its drone home-delivery operation.

Meanwhile, the new 350-acre Bentonville, Arkansas, campus features a hotel, a food hall, an amphitheater, and fitness and child care centers, as well as electric bikes and robot maintenance crews. The grounds, NYT said, mirror those of some of the world’s biggest tech companies.

Walmart opened the first phase of the new headquarters in January, with the 12th and final building scheduled to open at the end of the year.

“You are in a competition for talent — even if you are the largest company in the world by revenue — and having a nice experience and work environment is a great recruiting and retention tool,” said Scott Benedict, a Walmart executive-turned-retail-consultant.

PYMNTS wrote about these efforts earlier this month, pointing out Walmart has been pivoting toward younger consumers. By using digital-first marketing, mobile commerce initiatives, and AI-enhanced customer service, the retailer is trying to reconfigure its brand identity for a new generation of shoppers.

“Gen Z, with its mobile-native behaviors and preference for personalized, ethical and digital experiences, presents both a challenge and an opportunity,” that report said. “Walmart’s multipronged strategy — FinTech services, AI shopping tools and socially conscious messaging — aims to build loyalty with this increasingly influential cohort.”

Meanwhile, recent PYMNTS Intelligence research examined the phenomenon of people who subscribe to both Walmart+ and rival Amazon’s Prime program, with dual subscribers nearly doubling since 2021.

“The primary motivations behind subscribing to both Amazon Prime and Walmart+ are saving money and gaining access to exclusive perks and added services,” PYMNTS wrote last month.

“Consumers are increasingly choosing the best offerings from each retailer to meet their specific needs, rather than committing themselves to just one. This strategic approach allows them to compare prices and find the best deals, underscoring the perceived value of combined benefits, even among households facing tight budgets.”