Walmart Stores
(
WMT
) has gone another step closer to its customer's hearts and has
decided to launch its first Facebook application, Shopycat, to help
its buyers choose gifts for their friends online and avoid the
holiday season rush.
WalmartLabs, Walmart's Global e-Commerce Division, and the
company's hub for creating technologies and businesses in social
and mobile commerce for global shoppers has set up the Shopycat
application. WalmartLabs was formed after Walmart acquired Mountain
View-based Kosmix, a heavily-funded social media technology
provider.
The application will scour data from the social networking site
Facebook, and will thereafter recommend gift for a person based on
his likings and requirement. The application will also provide
links to sites other than Walmart.com, with the purpose of creating
a broader marketplace rather than just a Walmart application. The
application is part of Walmart's Facebook page, which has 10
million fans.
The gifts are usually not priced on the higher side and range
between $10 and $100. It is particularly helpful for
budget-constrained customers.
However, customers need not be cautious about the infringement
on personal data, as the founder of Kosmix, Anand Rajaraman,
assured that Walmart will never use consumers' data in any way
beyond what it has been permitted.
Walmart is also working on technologies such as those that let
shoppers buy products in the aisles and skip the checkout line, and
is also interested in NFC (near-field communication) for enabling
purchases by phone.
Other retail biggies are also promoting sales through Facebook.
In early November,
EBay Inc.
(
EBAY
) launched an online service, Group Gifts, that connects eBay
shoppers with Facebook friends to collectively purchase
presents.
Wal-Mart reported better-than-expected second-quarter 2012
results on November 15, with quarterly earnings of $1.09 a share,
up 12.4% over the year-ago earnings of 97 cents a share. Reported
earnings per share also surpassed the Zacks Consensus Estimate by a
penny.
However, Wal-Mart faces stiff competition from Target Corp
.
and
Costco Wholesale Corporation
(
COST
), and has a Zacks #3 Rank, indicating a short-term 'Hold'
recommendation.
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