How Walmart plans to steal Amazon and Google's best tech talent
Walmart
is investing billions in a gleaming new headquarters campus designed to lure top tech talent away from industry giants like Google, Netflix and Amazon, as the retail behemoth transforms itself into a technology-driven company to compete in the digital marketplace.
The retailer's new 350-acre Bentonville, Arkansas campus features Silicon Valley-style amenities including electric bikes, robot groundskeepers, a hotel, food hall, amphitheater and massive fitness centers. The facility, which opened its first building in January, represents a dramatic departure from Walmart's spartan former headquarters in a converted distribution center with wood-paneled offices and few windows.
Tech workers now comprise one-third of Walmart's 15,000-person corporate workforce, driving the company's digital advertising platform, data services, artificial intelligence and drone delivery operations. This technological pivot has forced the world's largest retailer by revenue to compete directly with tech companies for skilled employees who have specific workplace expectations.
From discount store to tech powerhouse
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"You are in a competition for talent — even if you are the largest company in the world by revenue — and having a nice experience and work environment is a great recruiting and retention tool," said Scott Benedict, a former Walmart executive turned retail consultant, according to The New York Times.
The challenge is particularly acute for a company based in Arkansas, where recruiting tech talent requires convincing workers to relocate from major metropolitan areas. Walmart must demonstrate that life in Bentonville can rival opportunities in San Francisco, Seattle or New York while shedding its image as a traditional brick-and-mortar retailer.
Dan Bartlett, Walmart's executive vice president of corporate affairs, acknowledged the new campus "will play a role in recruiting and retention of talent, particularly tech talent, where they have certain expectations."
Walmart is going beyond price wars
The transformation reflects Walmart's recognition that competing on price alone is no longer sufficient. Modern commerce demands excellence in convenience, breadth and speed, forcing the company to match Amazon's technological capabilities while leveraging its vast network of nearly 11,000 stores worldwide.
Walmart's e-commerce business recently achieved profitability, with the company expecting two-thirds of future growth to come from digital operations. The retailer now sells premium items like $6,000 Louis Vuitton handbags online while expanding drone delivery services to compete with Amazon's logistics network.
The investment appears to be paying dividends with investors. Walmart's stock has outperformed both the S&P 500 and Amazon this year, rising more than 5 percent as analysts overwhelmingly rate the company a buy.
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