A new story from Marketplace Morning Report with David Brancaccio


<Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> This <Speech_Male> week we'll hear about <Speech_Male> how some of the biggest <Speech_Male> retailers <Speech_Male> have been doing <Speech_Male> throughout the pandemic <Speech_Male> one of them is Walmart <Speech_Male> which reports quarterly <Speech_Male> earnings. On Tuesday <Speech_Male> the company <Speech_Male> stores have stayed <Speech_Male> opened throughout <Speech_Male> the crisis. Giving it a front <Speech_Male> row seats on <Speech_Telephony_Male> how our <Speech_Male> shopping habits have <Speech_Male> changed. Marketplace's <Speech_Male> Justin <SpeakerChange> Ho <Speech_Male> has more <Speech_Male> one of the brightest <Speech_Male> spots of Walmart's business <Speech_Male> has been curbside <Speech_Male> pickup. <Speech_Male> A service where customers <Speech_Male> order things online <Speech_Male> drive to the store <Speech_Male> in wait while <Speech_Male> a worker <SpeakerChange> loads everything <Speech_Female> into their trunks <Speech_Female> and that <Speech_Female> during Cova <Speech_Male> has just accelerated. <Speech_Male> That's <Speech_Male> later an who follows <Speech_Male> Walmart for the research <Speech_Male> firm Kantar <Speech_Male> Duran says <Speech_Male> curbside. Pickup <Speech_Male> gotten huge because <Speech_Male> people are using the <Speech_Male> risk to buy groceries. <Speech_Male> That's an <Speech_Male> area where Walmart <SpeakerChange> already <Speech_Male> dominates. <Speech_Female> We show <Speech_Female> that half of all <Speech_Female> as online <Speech_Female> grocery. Shoppers <Speech_Female> are using Walmart <Speech_Female> for their <Speech_Female> online <SpeakerChange> grocery <Speech_Male> orders. Walmart <Speech_Male> success with curbside. <Speech_Male> Pickup comes <Speech_Male> with costs. <Speech_Male> Charlie O'Shea Moody <Speech_Male> says Labor is a big <Speech_Male> one. It's <Speech_Male> manually intensive <Speech_Male> process for workers <Speech_Male> to pick out and <Speech_Male> scan hundreds <SpeakerChange> of <Speech_Male> grocery products. <Speech_Telephony_Male> You'll see the employees <Speech_Telephony_Male> standing in front <Speech_Telephony_Male> of the Shelf. <Speech_Telephony_Male> Kinda scratching their head <Speech_Telephony_Male> every so often. Right which <Speech_Telephony_Male> one of these and all <Speech_Telephony_Male> we don't <SpeakerChange> have it. <Speech_Telephony_Male> What do I substitute? <Speech_Male> Groceries also carry <Speech_Male> lower margins <Speech_Male> than the other products. <Speech_Male> Walmart sells <Speech_Male> like barbecues bikes <Speech_Male> or clothes <Speech_Male> on Friday. <Speech_Male> The government said apparel <Speech_Male> sales dropped <Speech_Male> eighty percents last <Speech_Male> month. Oj <Speech_Male> says the crisis <Speech_Male> is changing. <SpeakerChange> The Way Walmart <Speech_Male> makes money. <Speech_Telephony_Male> You're going to see just <Speech_Telephony_Male> absolutely blowout <Speech_Telephony_Male> sales. <Speech_Telephony_Male> In you know <Speech_Telephony_Male> food consumable <Speech_Telephony_Male> you <Speech_Telephony_Male> will see obvious. <Speech_Telephony_Male> Softness in <Speech_Telephony_Male> <SpeakerChange> discretionary <Speech_Telephony_Male> categories curbside. <Speech_Male> Pickup has one <Speech_Male> big advantage for <Speech_Male> Walmart. And it doesn't <Speech_Male> have to deliver those groceries <Speech_Male> to your house. <Speech_Male> Brian Yarbrough <Speech_Male> consumer research <Speech_Male> analyst at Edward <Speech_Male> Jones. He <Speech_Male> says curbside pickup <Speech_Male> is more profitable <Speech_Male> for retailers than online <Speech_Male> delivery it's <Speech_Telephony_Male> shipping cost <Speech_Telephony_Male> and the free shipping <Speech_Telephony_Male> that <SpeakerChange> really <Speech_Telephony_Male> eat all the margins. <Speech_Male> Yarbrough says <Speech_Male> the pandemic is pushing <Speech_Male> more customers toward <Speech_Male> online delivery <Speech_Male> to while <Speech_Male> Walmart loses <Speech_Male> money delivering products <Speech_Male> to customers. <Speech_Male> He says it <SpeakerChange> can still <Speech_Male> benefit for Walmart <Speech_Telephony_Male> and combat gaining <Speech_Telephony_Male> market share and gaining <Speech_Male> new customers <Speech_Telephony_Male> and offering <SpeakerChange> the option. <Speech_Male> He says <Speech_Male> what remains to be seen <Speech_Male> is whether those new <Speech_Male> customers continue <Speech_Male> to shop at Walmart <Speech_Male> when the pandemic comes <Speech_Music_Male> <Advertisement> down. I'm <Speech_Music_Male> <Advertisement> just an Ho- for <Speech_Music_Male> <Advertisement> marketplace <Speech_Music_Male> <Advertisement> and <Speech_Music_Male> <Advertisement> in New York. I'm <Speech_Music_Male> <Advertisement> three you're <Speech_Music_Male> <Advertisement> with the marketplace <Speech_Music_Male> <SpeakerChange> morning report <Music>

Coming up next