WMT’s New AI-Driven Shopping Experience: What it Means for Customers

Walmart Inc. WMT is taking retail to a new level where shopping becomes more personal and convenient than ever. The retail giant has laid out an ambitious plan to integrate artificial intelligence (AI), generative AI (GenAI), augmented reality (AR) and immersive commerce into its stores and digital platforms.

This initiative aims to create a hyper-personalized experience, adapting to each customer’s needs and shopping preferences. Whether shopping in-store, online or through an app, customers will find that Walmart is working to meet them where they are — delivering a seamless, personalized experience every step of the way.

At the core of this strategy is Walmart’s use of proprietary AI platforms, designed to understand customer preferences and provide tailored shopping experiences. These efforts will span Walmart’s various business segments, including Walmart U.S., Sam’s Club and Walmart International. The company believes that creating these customized interactions will not only improve customer satisfaction but also help Walmart stay ahead in the ever-evolving retail landscape.

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Walmart’s Retail-Specific AI and Customer Care

A significant part of Walmart’s strategy involves the development of Wallaby, a series of retail-specific large language models (LLMs) that will transform how customers interact with the brand. Wallaby, built by using decades of Walmart’s data, is tailored to respond naturally and in alignment with the company’s core values. By combining these LLMs with GenAI platforms, Walmart aims to provide responses that are contextually relevant and personalized.

Walmart has enhanced its AI-powered Customer Support Assistant using a combination of GenAI platforms to offer a more personalized customer experience. The assistant does not just understand customer requests — it also takes action, such as locating orders or handling returns autonomously. In early testing, users reported a smoother experience, highlighting how quickly and efficiently their issues were resolved. The company is also building more AI tools to extend this personalized care across its other businesses, including Sam’s Club and international markets.

Walmart Focuses on Personalized Online Shopping

Personalization is the key driver behind Walmart’s innovations. The company’s new Content Decision Platform uses AI to anticipate customer needs, ensuring that each shopper’s online experience is as unique as if they were walking into a store designed for them. Walmart has already begun testing this platform on selected parts of its website and plans to expand it further by the end of next year. It aims to elevate global retail by providing personalized item recommendations, ensuring online shopping is as tailored and engaging as in-store experiences.

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WMT Reaches Customers in New Spaces

Walmart is pushing boundaries with immersive commerce platforms designed to meet younger generations in virtual spaces. Through AR platforms like Retina, Walmart has created tens of thousands of 3D assets that can be accessed through virtual environments. This aims at capturing the next generation of consumers who blend shopping with activities like gaming and social media.

Walmart has already made strides with its pilot project on Roblox and is now entering new territory by working with Unity and ZEPETO, two leading immersive platforms. Soon, shoppers will be able to buy items for their virtual avatars and even purchase the same items for themselves in the real world. This kind of immersive commerce opens up new revenue streams and establishes WMT as a forward-thinking retailer ready to adapt to the future of shopping.

Walmart Expands AR and 3D Experiences

Walmart’s AR efforts are already delivering results. Its AR-driven experiences in Walmart U.S. and Sam’s Club have led to a 10x increase in customer adoption rates, while also reducing product returns and improving conversion rates. The company plans to roll out more of these experiences across international markets, bringing features like “View in Your Home” to customers in Canada, Mexico and Chile.

These interactive features allow customers to engage with products in ways that were previously impossible. Walmart is also exploring headset-based experiences, which will allow customers to visualize furniture or home goods in realistic settings before buying, adding yet another layer to the shopping experience.

Walmart Leads the Future of Tech-Enhanced Shopping

Walmart’s approach to Adaptive Retail is clear: technology must serve people. By combining AI, generative AI, AR and immersive commerce platforms, the company is creating a retail environment where the customer is at the center of everything. The goal is to listen to what shoppers want and deliver it through an array of advanced technologies that feel personal, intuitive and useful.

As Walmart continues to innovate and expand its capabilities, it’s clear that the future of shopping is here — and it’s driven by a blend of people-first values and cutting-edge technology.

Shares of this Zacks Rank #3 (Hold) company have rallied 33.7% in the past six months compared with the industry’s 30.9% growth.

Some Solid Retail Stocks

Nordstrom, Inc. JWN, a fashion retailer that provides apparel, shoes, beauty accessories and home goods, currently sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

JWN delivered an earnings surprise of 29.7% in the last reported quarter. The Zacks Consensus Estimate for Nordstrom’s current financial year’s sales implies growth of 0.6% from the year-ago reported number.

The Kroger Co. KR, which operates as a food and drug retailer in the United States, currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter earnings surprise of nearly 8.2%, on average.

The Zacks Consensus Estimate for Kroger’s current quarter’s sales and earnings indicates a decline of 0.9% and 6.3%, respectively, from the year-ago reported numbers.

Burlington Stores, Inc. BURL operates as a retailer of branded merchandise in the United States and has a Zacks Rank of 2. BURL has a trailing four-quarter earnings surprise of 18.4%, on average.

The Zacks Consensus Estimate for Burlington Stores’ current financial year’s sales and earnings implies a rise of 10.1% and 30.5%, respectively, from the year-earlier reported figures.

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