Photo: Advance Auto Parts
Walmart and Advance Auto Parts join forces online
Walmart and Advance Auto Parts have announced a strategic partnership between the two chains to create an auto specialty store on walmart.com in 2019.
The new online store will sell common auto parts and accessories available at Walmart’s stores and its 2,500 Walmart Auto Care Centers.
To be launched in phases, the venture will also feature value-added content and product information from Advance. The two retailers plan to offer home delivery and same-day pickup at both retailers’ stores. Installation of some parts will also be offered as part of the service.
“This year, we’ve been incredibly focused on building our offering on Walmart.com to ensure we have the specialty assortment that our customers are looking for,” said Phillip Oaks, vice president and group general manager, retail merchandising, Walmart e-commerce, in a statement. “This comprehensive partnership will enhance almost every aspect of the automotive customer shopping experience — from the product offering online to fulfillment capabilities.
Moody’s lead retail analyst Charlie O’Shea called the deal a positive for the two chains.
“This alliance will provide Advance with a broader base for its products, with a partner in Walmart that is rapidly accelerating its online presence, and provides Walmart and its customers with a deeper assortment of auto parts,” said Mr. O’Shea in an email to RetailWire. “The auto parts sector continues to benefit from favorable industry dynamics, including increasing age of vehicles in the U.S., which adds to the mutually-beneficial nature of this strategic tie-up.”
Discussion Questions
DISCUSSION QUESTIONS: How do you see the deal with Advance Auto Parts advancing Walmart’s strategic plan for growth? What will this deal mean for rivals of Advance and Walmart?
Poll
BrainTrust
Carol Spieckerman
President, Spieckerman Retail
David Weinand
Chief Customer Officer, Incisiv
This is a real step in the right direction. So many of Walmart’s acquisitions and brand partnerships have been focused on, and even isolated to, digital. Walmart’s partnership with Advance Auto Parts leverages Walmart’s full clicks-to-bricks scale in a category that is still quite fragmented. Great for both companies and a natural fit.
Demographically it’s really a great match. I would think that the shopper profile for both Walmart and Advance is very similar. This is just another in a long line of really smart moves by Walmart to literally become the one-stop shop for millions.
Another smart move by Walmart to create their vision of the everything store! This looks like a win-win for both brands and really takes advantage of everything they both have to offer to what must be a fairly common demographic between them. It leverages not only their digital presence but also takes advantage of their brick-and-mortar footprint. It will be interesting to see how AutoZone, for example, responds. Could we see an equivalent pairing with a Target or even Amazon?
What’s “a deeper assortment of auto parts?” There are generic items that a customer can expect to find at a general merchandise store, like oil, drain pans, basic tools, common light bulbs and then there are true auto parts. Even the local Advance stores (or any purveyor) do not stock enough parts to fill customers’ needs and rely on their warehouse to support them either the same or next day. Unless there is a staffed counter in Walmart stores that have the same level of warehouse fulfillment support, this is a bunch of hype supported by an analyst that likely has never held an auto part in his hand.
Advance is the real winner here, getting an endorsement and brand boost. Walmart I doubt will gain much, and customers in need of “auto parts” are not very likely to gain any real value.
Interesting “engagement” between Walmart and Advance Auto. Their demographics should reflect this deal well, making this a win-win. But only if they get it off the ground making sure they have covered all the bases of what the customer is going to buy. Advance gets business they might not have had. My concern is, what prevents the customer from going to the Advance Auto Parts store that could be less than a mile away?
Advance Auto Parts will provide a huge win for Walmart’s initiative in the auto parts space. Walmart will likely become what Sears provided in the early days, comprehensive local auto parts for the DIY consumer. Advance Auto will be a winner as its brand is spread not only across its stores, but Walmart stores also. Rivals of Advance and Walmart will be driven to do similar partnerships to compete with the major presence this partnership will bring to the auto parts market.
I give Walmart a lot of credit for partnering and acquiring brands and platforms that drive growth through products and on-line services.
It’s a triple. A win for Walmart, which get access to Advance Auto Parts’ knowledge and after market parts without having to acquire the company; Advance’s access to Walmart’s customer base; and customers get the broader selection of parts and the services that Walmart.com offers.
This is a great match. Advance gets a huge online audience boost and fulfillment know-how. Walmart gets a long-tail assortment in a mostly-male “maker” category.
But unassisted online ordering is not always adequate for selecting parts that must be matched to a make and model. And some weekend repair projects demand a key part be obtained NOW. Overnight delivery doesn’t get your vehicle back on the road in time for work the next day.
If they can execute this well, I foresee a powerful business booster for both partners.