Walmart to launch new online home decor site

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Walmart, with its eye on Amazon.com, is working to ramp up its e-commerce business with the launch of a new online home shopping site later this year.

The move, announced Thursday, is the first glimpse of the company’s broader campaign to redesign its site with a focus on fashion and home furnishings.

E-commerce accounts for less than 4 percent of the total sales of Walmart, which faces stiff competition in the home arena not only from Amazon but home shopping sites like Wayfair.

The overhauled website will mirror how people shop for different items. While some purchases like groceries are transactional, others like fashion and home furnishings require more discovery. Later this spring, Walmart is rolling out its new Lord & Taylor dedicated page as part of its partnership with the department store chain’s parent company Hudson’s Bay.

A Walmart representation of a colorful kitchen, part of the company's new online home shopping experience that will let shoppers discover items based on their style. /AP Photo

Thw site will include curated collections and nine shop-by-style options including modern, traditional and bohemian. It will offer design tips that will help shoppers pull items together.

“With this launch, we’re making it faster, easier and more inspiring for customers to discover the best of our assortment no matter their personal style,” said Anthony Soohoo, senior vice president and general manager of home for Walmart’s e-commerce division.

This undated artist rending provided by Walmart shows their glam living room, which is part of Walmart’s new online home shopping experience that will let shoppers discover items based on their style. /AP Photo

Walmart has overhauled its shipping strategy and expanded the number of items online to 75 million. In home furnishings, it doubled the number of products online from a year ago and introduced a new Scandinavian collection of furniture for children.

Amazon has been growing its home offerings. It sells its own exclusive brands of furniture, sheets and other home goods. It signed a deal with Ethan Allen last year to sell its sofas, lamps and rugs, and Amazon shoppers can ask Ethan Allen experts for design advice.

This undated artist rending provided by Walmart shows their Bohemian living room, which is part of Walmart’s new online home shopping offering. /AP Photo

Boston-based Wayfair is the largest online-only furniture retailer and has a seemingly infinite range of products, but it’s facing more pressure from Amazon as it expands deeper into the home arena.

Target has also been stepping up its offerings in home furnishings, both online and in the store. Two years ago, it started offering vignettes in the home area of its physical stores to inspire shoppers to buy.

Another example of the "experience" that Walmart wants to create. /AP Photo

Walmart’s latest online strategy comes as it hit a snag in its e-commerce business for the critical fiscal fourth quarter, after enjoying a surging e-commerce business over the past few quarters that helped lift its stock.

Its US e-commerce business rose 23 percent for the fiscal fourth quarter, a dramatic slowdown from the 50 percent growth in the previous quarter. Shares fell 10.2 percent on Tuesday to post its biggest single-day percentage drop in 30 years.

Walmart says it expects its e-commerce business to ramp up this year and sees e-commerce rising 40 percent this year, the same pace as last year.

Source(s): AP