What: Walmart is closing its innovation unit, Store No. 8, which was established to foster technological advancements and compete with Amazon. The closure will see the departure of Scott Eckert, who led the unit.

Why it is important: This move signifies a strategic shift in Walmart's approach to innovation, indicating a possible realignment of resources and priorities within the company.

Walmart has announced the shutdown of Store No. 8, its technology and business innovation unit, which was instrumental in developing initiatives like in-home delivery and voice shopping. The unit, launched in 2017, was a key player in Walmart's efforts to rival Amazon, focusing on areas such as health and wellness, sustainability, social commerce, and the metaverse. With the closure, Scott Eckert, the senior vice president in charge since June 2019, will exit the company. Walmart's CFO, John David Rainey, stated that the responsibility for future innovations will now be distributed across the company. This decision reflects Walmart's evolving strategy in embracing new revenue streams and adapting to market trends. The announcement comes as Walmart prepares for its fourth quarter and year-end earnings call, following a year where it saw a 5.2% increase in Q3 global revenue but also observed cautious customer spending.

Walmart to close Store No. 8