USA- Multinational retail giant Walmart has partnered with various local popular QSR chains in a deliberate strategic response to the growing ecommerce market and popularity of drive-thrus.
According to Daily Mail, Walmart is increasingly looking to partner with local, popular fast food chains.
The retail giant is known for its partnerships with popular fast food brands that typically mirror its high level market status among value-focused customers like Burger King, Subway, McDonald’s, Domino’s, Wendy’s and Taco Bell.
These partnerships are meant for the retail giant to live up to its ‘one-stop-shop title’ by implementing fast food into its outlets. It grants customers the option of shopping for necessities and affordably dine.
However, the performance of these fast food partnerships has waned due to the growth of ecommerce sales and popularity of drive thrus, which Walmart does not offer for its QSR partners.
According to analytics firm Grand View Research, drive-thru purchases accounted for two-thirds of fast food sales in 2023.
The firm also reveals revenues from the online food delivery market in the US is projected to reach US$353.3 billion in 2024 and will grow at a combined annual growth rate (CAGR) of 9.76%, reaching US$562.7 billion by 2029.
The retail giant has responded to these market changes by partnering with smaller popular fast food chains.
Through such partnerships, Walmart is betting on the chains’ popularity to overshadow the increasing proliferation of e-commerce among larger fast food chains, especially as these local popular chains continue to develop their e-commerce capabilities.
In late August, Walmart entered a partnership with Knuckles Hoagies, a Georgia-based sandwich chain. The chain was founded in 2019, quickly rising in popularity. Knuckles Hoagies has since opened 40 locations across Georgie.
According to the terms of the agreement, the QSR chain will be added to 14 Walmart leases across six Southern states- Georgia, South Carolina, North Carolina, Tennessee, Oklahoma, and Texas.
Walmart’s partnership with Subway was collateral damage to this partnership.
The retail corporation also recently entered into an exclusive partnership with Texas-based pizza chain Mr Gatti’s Pizza.
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