BREAKING: Walmart's Nintendo Switch 2 Launch Just Changed Retail Forever
Walmart just revolutionized product launches forever! See how they delivered every Nintendo Switch 2 pre-order by 9 AM with FREE Coke and Pringles, leaving Target and Best Buy scrambling to catch up. Expert analysis on why this changes everything for electronics retail and gaming drops. Brought to you by A&M Consumer and Retail Group, Mirakl, Simbe, Infios, Clear Demand, and Ocampo Capital.
#walmart #switch2 #nintendo
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Transcript
Walmart decided to try something a little different with the launch of Nintendo Switch 2.
Speaker A:According to Modern Retail, Walmart delivered every Nintendo Switch 2 console preordered by customers by 9am local time and some even arrived as early as 7am and customers did not have to pay for the extra express delivery.
Speaker A:Additionally, to the surprise of shoppers, some of whom shared on social media, the retailer included Coca Cola bottles and Pringles chips.
Speaker A:And alongside the consoles for free as an extra wow factor.
Speaker A:David Gugina, the EVP and Chief e commerce Officer for Walmart us, said the company wanted to use the launch to bring awareness of how quickly the company can deliver food items alongside general merchandise.
Speaker A:Brooks, we're going to you first on this one.
Speaker A:I can't wait to hear what you have to say.
Speaker A:With the unique approach to the Nintendo Switch to launch, has Walmart forever changed the merchandising game around?
Speaker A:Hot new product release releases.
Speaker B:Well, and you had me at free snacks.
Speaker B:Yes.
Speaker C:Once you stop it, you can't stop it, right, Brooks?
Speaker C:That's the whole tagline, right?
Speaker B:Well, you're exactly right about that.
Speaker B:If I could just get my teenagers out of bed before 9am to pick up that package.
Speaker B:Somebody tell me that secret.
Speaker B:Even 7am you said?
Speaker A:Yeah, this might be motivation to get out of bed.
Speaker A:A new gaming console, Maybe.
Speaker A:We'll see.
Speaker B:Something feels amazingly ingenious about what Walmart pulled off here.
Speaker B:I'll be eager to hear more about the results and the execution.
Speaker B:This feels like a big win for Walmart, Nintendo, Coke and Pringles, I'll say, which were along for the ride.
Speaker B:There are people that like to wait in long lines for a launch.
Speaker B:These people exist.
Speaker B:I'm not one of them.
Speaker B:This is service with a smile.
Speaker B:Nothing pairs better with gaming than Coke and Pringles.
Speaker B:So hey, kudos to Walmart for this vision.
Speaker B:I absolutely love it.
Speaker A:Yet how do you think, and were you surprised, Brooks, that Walmart was the one to kind of upend or to kind of change the merchandising game around?
Speaker A:You know how they do these product drops?
Speaker B:Well, I've loved Walmart's vision the last couple of years.
Speaker B:The imagination.
Speaker B:I love that creativity.
Speaker B:I think this is the future.
Speaker B:I think it's a, it's a game changer, as you said.
Speaker A:Chris, how about you?
Speaker A:You're, you're one of the merchants of the group here.
Speaker A:I mean, how much of an impact do you think this is going to have for even competitors in the space who are all trying to figure out how to launch these products in new and exciting ways.
Speaker C:Yeah, it's a great question.
Speaker C:And you know, you know, having been, you know, live in the war rooms during these product launches back in my Target days, you know, I think 100%, yes, I think Brooks is right.
Speaker C:This is change the game forever.
Speaker C:And the reason I say that is because retail retailers are creatures of habit.
Speaker C:They don't, they don't do anything until they see somebody else do it and do it successfully and then they all follow suit almost like lemmings to a point.
Speaker C:And so that's what this is about.
Speaker C:You know, it's a, it's an approach, I mean, Brooks hit on a little bit.
Speaker C:It's an approach that beats standing in line and getting to the store only to be disappointed to find out, you know, that what you wanted to get is no longer available or even to go into the store to pick up your preorder.
Speaker C:So yeah, and then you get the extra surprises of Coke and Pringles to boot.
Speaker C:So, you know, yes, my guess is the rest of industry and really the only players we're talking about in this space are our Best Buy, Target, used to be Gamestop.
Speaker C:I don't know how much they're still in this game but really that's who we're talking about.
Speaker C:And I wouldn't be surprised if the next time this comes around all of them are going to do something very, very similar.
Speaker A:Yeah, especially with a category that is really one of the things that's, that had been really driving people to stores.
Speaker A:Like it was so important for people to have these product drops.
Speaker A:Brad Bryson, what are your thoughts here?
Speaker A:I mean what do you think about how this is going to change like what Chris said, how maybe even Target or some other retailers, Best Buy start to market these product drops?
Speaker D:Yeah, no, I think the change is going to be meaningful and significant.
Speaker D:I think swift as well.
Speaker D:I think just given the success that Walmart achieved in this drop, not only with the surprise and delight of their customers that participated, but also the word of mouth buzz that was generated through this on platforms where you traditionally don't see Walmart indexing the gaming platforms where these coh engage.
Speaker D:So the word of mouth, the positivity you achieve through it.
Speaker D:But then I think also too then flipping over to the brand side, really that coveted access to, you know, those consumer insights and really that deep meaning the ability to establish that deep meaningful connection one on one where brands are struggling with, you know, competing with shared mind with their consumers, obviously, you know, reducing assortments in store, competing for offline purchases and elsewhere so for Walmart to you know, bridge that gap and not only identify a key cohort that is vital important to Coca Cola, Pringles and other brands and then be able to make that connection I think is a huge win and you're going to see much more excitement and actually now brands starting to pull and push and setting that expectation.
Speaker D:So I think you know, could be a little bit of a, you know, the genie's out of the model so be careful what you wait for.
Speaker D:But I think you're going to see more brands now flooding for that direct one to one connect with their retail partners.
Speaker A:100%.
Speaker A:Yeah, I think that's the brand play here is, is just brilliant and I think this is definitely going to be one of those other touch points like you're saying Bryson, you know that where it's retail media but then how do I intercept and get in there in front of our consumers at home and how do I get in front of them in the store?
Speaker A:And I think the number one thing that you, you just mentioned that got me thinking here is the swiftness of how this can happen.
Speaker A:I think it's really important to call out who's speaking on Walmart's behalf in this article.
Speaker A:It's David Gugina.
Speaker A:It's not the brand rep, it's not the electronics box buyer, it's really the supply chain team.
Speaker A:And, and when you think about all the logistics that have to go into making this be executed as flawlessly as it was to deliver in some cases by 7am like this involves coordination at a scale that Walmart clearly is ready to do.
Speaker A:Our best buy and Target also equipped with their internal operations to handle an execution like this.
Speaker A:That's the question that I have for how quickly we'll end up seeing, seeing some of the other retailers follow suit.
Speaker A:But Chris, it looks like you got a point to close on here.
Speaker C:Yeah, no I think that's a great point you know because David Geena to, for, I mean for those that maybe aren't as familiar with him as you are and you know he was formerly the EVP of supply chain and now is the head of E Commerce so he brings those chops to the table to execute this.
Speaker C:So your question about can other people replicate it is really interesting.
Speaker C:The other point though that I think about is that I actually think this is an easier model to execute than the traditional pre order drop in the store as well because you know, who needs who, who's demanding the items and you just got get them to them and then the last point I make is I also think this is very rep.
Speaker C:Repeatable across other product categories.
Speaker C:Like I think of fashion drops and things like that that, you know, like our, our former retail, our former employer loves to do as well.
Speaker C:So, like this is very, very easy to do and replicate across the industry, not just it doesn't have to stay within electronic shops.
Speaker C:Bryson, close us out with the last word.
Speaker D:Yeah, and Chris, I think you brought up a relevant point that we really haven't given a lot of attention to.
Speaker D:Right.
Speaker D:And that is the impact on the physical stores.
Speaker D:Right.
Speaker D:So to prepare for and be able to facilitate these drops, look, over the past years it's come at some risk for retailers, right?
Speaker D:Queuing up long lines, dissatisfied customers who weren't able to get their hands on the product, customers chomping at the bed and rushing through the store to be able to find that product.
Speaker D:So it really alleviates a lot of the potential legacy headaches that we've had and we've seen in these traditional drops, whether it's Black Friday, new product releases.
Speaker D:So there is a knockdown benefit of that too, in the sense of being able to control the narrative and satisfy all the customers as opposed to sending away the.
Speaker D:So I'm dissatisfied.
Speaker C:Yeah, great point.
Speaker C:And not even just the stores online too, because you can actually over fulfill your demand online and then have to issue a lot of apology notices on the back end of that as well as I've been a part of in the past as well.
Speaker C:So.
Speaker C:Yes, so there's a lot of operational wins here too.
