13 March 2015
At SparkOptimus, we try to highlight the most important news and background stories in digital, e-commerce and retail. Here is our selection of last week’s news:
An interesting battle is currently heating up between Target and Walmart in the U.S. It is no secret that both retail brands were a bit late to the e-commerce space. They want to set that right, considering U.S. e-retail sales grew to $305bn (15% up) in 2014 and is expected to grow to $435bn in 2018. Target is therefore planning to invest $1 billion this year to improve its digital capabilities – which is the same amount as they are investing in their 1,800 stores. The investment should result in 40% growth. But then there is Walmart – who plans to invest $2 billion. While Target is expected to adapt with more ease to the new retail environment as they are smaller, Walmart won another battle: Target announced in January to close all its retail shops in Canada, two years after opening. A great moment for Walmart to announce that 29 new stores will be opened in Canada. That’s not it: Target U.S. announced this Tuesday that it is laying off 1,700 employees, while Walmart announced earlier to raise the salary of all 500,000 employees.