🛒🎮 Walmart's Deep Dive into Roblox
Happy Hump Day,
Hope you are doing well! The market recovered a little bit today but it’s been taking some huge hits the last few months (-22.46% YTD). What are some of your biggest questions about the economy or state of the market right now? Reply directly to this e-mail and we can feature some of your questions in a Q&A soon!
Enjoy this week’s Hump Days!
- Humphrey, Rickie & Tim
Featured Story
Walmart joins a list of large corporations looking to tap into attracting younger customers through the metaverse. Walmart announced on Monday that they were stepping into the gaming platform Roblox with two new experiences: “Walmart Land” and “Universe of Play”. This marks Walmart’s first time experimenting with virtual worlds as they aim to reach the next generation of shoppers.
Walmart’s dive into the metaverse will feature a blimp that drops toys, a music festival with headliners such as Madison Beer & Kane Brown, and a store of virtual merchandise that matches what customers may find in Walmart’s stores and on its website.
Roblox drew many new users during the pandemic, growing from 32.6M daily active users (DAU) in 2020 to more than 52M. It has historically drawn younger kids and teens, but the company said it is attracting users across a wider age range. As Roblox’s user base has grown, so has interest from other large retailers and brands. Walmart joins Roblox along with Nike’s “Nikeland”, PacSun, Vans and their virtual skate park, and Ralph Lauren. Although, Walmart appears to be making the biggest effort o the gaming platform.
The big-box retailer has already made significant investments into the social media space hosting shippable live streaming events on TikTok, Twitter, and YouTube, in addition to rolling out an augmented reality-powered tool on Pinterest that allows shoppers to see how decor would look in their own homes. Working with Roblox will serve as a testing ground for Walmart as they consider moving into the metaverse and beyond, said William White (Walmart CMO).
“How are we driving relevance in cultural conversation? How are we developing community and engagement? How are we moving the needle from a brand favorability [standpoint] with younger audiences? That’s what we’re trying to accomplish here.” - William White, Chief Marketing Officer)
Walmart seems to be diving full force into virtual worlds and seems dead set on trying to connect the dots between the virtual and physical worlds. White is quoted saying:
"This is another step of reaching our customers in unexpected ways and in the places where they’re spending their time. We are excited to be one of the first major retailers to do this.”
If they are able to draw in the younger consumer from their virtual worlds successfully, expect many other corporations to follow suit. This is something we’ll be watching closely as the data continues to roll out.
Weekly News Roundup
Savings Rates Climb to Levels Not Seen Since 2009 (CNBC)
The Fed hiking the target federal funds rate by another 75bps earlier this month opened new opportunities for savers to earn better returns on their cash; and more rate increases could be on the way in 2023, depending on the path inflation takes. Some savings accounts are offering interest rates at 3%, after starting the year at 0.55%. Notably, the interest rate growth is concentrated in online accounts, while savings at brick-and-mortar banks have not moved much at all.
TC: One of the big benefits of higher rates is higher interest rates! Wealthfront’s 2.55% has been great while Bank of America’s 0.01% is… underwhelming.
Walmart Enters Metaverse with Roblox Experiences Aimed at Younger Shoppers (CNBC)
Walmart is entering the metaverse with two experiences premiering Monday on the online gaming platform Roblox. The experience will feature a blimp that drops toys, a music festival with hot artists, a bunch of different games, and a store of virtual merchandise that matches what customers may find in Walmart’s stores and on its website. Walmart is experimenting with new ways to reach shoppers after seeing the pandemic shake up shopping habits.
TC: We’re still talking about the metaverse?
Euro, Sterling Plunge on Soft Business Activity Data, UK Budget Woes (Reuters)
The euro and sterling plummeted to fresh 20-year and 37-year lows against the surging U.S. dollar after surveys showed the downturn in business activity across the eurozone and the U.K. accelerated. The fall was partially triggered by data showing S&P Global’s flash eurozone Composite Purchasing Managers’ Index, seen as a good gauge of overall economic health, fell further in September. The dollar also received a boost from a very hawkish Fed policy announcement and rising Treasury yields.
RH:
Winners: U.S. importers and U.S. travelers. Better deals on hotel rooms and meals when they travel abroad.
Losers: Multinational corporations whose profits are hurt by the dollar’s strength, emerging economies, U.S. exporters, U.S tourism.
Charts of the Week
The Case-Shiller Index, a tracker of home prices in 20 large cities, fell for the first time since March 2012. As mortgage rates climb higher, buyers are getting priced out.
