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
For the full episode, head here: https://youtu.be/vjOmUkH_Vhw?si=9f8KlsQw8yUdPqan
Walmart decided to try something a little different with the launch of Nintendo Switch 2.
Speaker AAccording 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 AAdditionally, to the surprise of shoppers, some of whom shared on social media, the retailer included Coca Cola bottles and Pringles chips.
Speaker AAnd alongside the consoles for free as an extra wow factor.
Speaker ADavid 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 ABrooks, we're going to you first on this one.
Speaker AI can't wait to hear what you have to say.
Speaker AWith the unique approach to the Nintendo Switch to launch, has Walmart forever changed the merchandising game around?
Speaker AHot new product release releases.
Speaker BWell, and you had me at free snacks.
Speaker BYes.
Speaker COnce you stop it, you can't stop it, right, Brooks?
Speaker CThat's the whole tagline, right?
Speaker BWell, you're exactly right about that.
Speaker BIf I could just get my teenagers out of bed before 9am to pick up that package.
Speaker BSomebody tell me that secret.
Speaker BEven 7am you said?
Speaker AYeah, this might be motivation to get out of bed.
Speaker AA new gaming console, Maybe.
Speaker AWe'll see.
Speaker BSomething feels amazingly ingenious about what Walmart pulled off here.
Speaker BI'll be eager to hear more about the results and the execution.
Speaker BThis feels like a big win for Walmart, Nintendo, Coke and Pringles, I'll say, which were along for the ride.
Speaker BThere are people that like to wait in long lines for a launch.
Speaker BThese people exist.
Speaker BI'm not one of them.
Speaker BThis is service with a smile.
Speaker BNothing pairs better with gaming than Coke and Pringles.
Speaker BSo hey, kudos to Walmart for this vision.
Speaker BI absolutely love it.
Speaker AYet 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 AYou know how they do these product drops?
Speaker BWell, I've loved Walmart's vision the last couple of years.
Speaker BThe imagination.
Speaker BI love that creativity.
Speaker BI think this is the future.
Speaker BI think it's a, it's a game changer, as you said.
Speaker AChris, how about you?
Speaker AYou're, you're one of the merchants of the group here.
Speaker AI 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 CYeah, it's a great question.
Speaker CAnd 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 CThis is change the game forever.
Speaker CAnd the reason I say that is because retail retailers are creatures of habit.
Speaker CThey 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 CAnd so that's what this is about.
Speaker CYou know, it's a, it's an approach, I mean, Brooks hit on a little bit.
Speaker CIt'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 CSo yeah, and then you get the extra surprises of Coke and Pringles to boot.
Speaker CSo, 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 CI don't know how much they're still in this game but really that's who we're talking about.
Speaker CAnd I wouldn't be surprised if the next time this comes around all of them are going to do something very, very similar.
Speaker AYeah, especially with a category that is really one of the things that's, that had been really driving people to stores.
Speaker ALike it was so important for people to have these product drops.
Speaker ABrad Bryson, what are your thoughts here?
Speaker AI 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 DYeah, no, I think the change is going to be meaningful and significant.
Speaker DI think swift as well.
Speaker DI 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 DSo the word of mouth, the positivity you achieve through it.
Speaker DBut 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 DSo 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 DBut I think you're going to see more brands now flooding for that direct one to one connect with their retail partners.
Speaker A100%.
Speaker AYeah, 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 AAnd 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 AI think it's really important to call out who's speaking on Walmart's behalf in this article.
Speaker AIt's David Gugina.
Speaker AIt's not the brand rep, it's not the electronics box buyer, it's really the supply chain team.
Speaker AAnd, 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 AOur best buy and Target also equipped with their internal operations to handle an execution like this.
Speaker AThat's the question that I have for how quickly we'll end up seeing, seeing some of the other retailers follow suit.
Speaker ABut Chris, it looks like you got a point to close on here.
Speaker CYeah, 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 CSo your question about can other people replicate it is really interesting.
Speaker CThe 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 CRepeatable across other product categories.
Speaker CLike 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 CSo, 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 CBryson, close us out with the last word.
Speaker DYeah, and Chris, I think you brought up a relevant point that we really haven't given a lot of attention to.
Speaker DRight.
Speaker DAnd that is the impact on the physical stores.
Speaker DRight.
Speaker DSo 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 DQueuing 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 DSo 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 DSo 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 DSo I'm dissatisfied.
Speaker CYeah, great point.
Speaker CAnd 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 CSo.
Speaker CYes, so there's a lot of operational wins here too.