Walmart makes "big bet" immersive commerce play on Roblox

Walmart is playing a long game to build generational brand loyalty.

Why it matters: The retailer is investing in immersive commerce like a virtual store called Walmart Discovered geared toward young gamers on Roblox , along with mini stores curated by online influencers in its Walmart Realm .

The idea is to create a warm, fuzzy feeling about the brand early in life, so shoppers will return again and again.

Context: Roblox is part of a new generation of online games that allow users to build their own scenarios, play with other users around the globe and interact through social media with their avatars.

• Monthly subscriptions and virtual money — Robux — can be purchased to unlock premium player experiences.
• Roblox has 79.5 million average daily active users, 58% of which are 13 or older, a company spokesperson told Axios. (E-commerce functions on Roblox are only available to users in the U.S. over age 13.)

State of (online) play: Walmart's director of brand experiences and strategy, Justin Brenton , described the company's immersive-commerce strategy for Axios: "Our two paths are around meeting [customers] where they are online, and shortening the distance between inspiration and commerce," he said.

• Translation: Advertise on the right channel and make it easy to buy stuff.

How it works: A Roblox player can guide their avatar into a virtual store at Walmart Discovered (one of many game packs offered on the platform), click on an item — say, a water bottle — and buy it with Robux.

• Not only does the water bottle get shipped to the user in real life, their avatar now has a digital copy to carry around.

What they're saying: "When you think about time spent on Roblox relative to social platforms like Tik Tok and Instagram, [or] streaming platforms like Netflix and Hulu, Roblox is by far the highest in terms of time spent among the next generation of consumers," Brenton said.

• "Users are spending more than two hours a day on that platform."

The strategy is not just about Gen Z, but also Gen Alpha and making sure the company has a foundation as a leading retailer, Brenton said.

Driving the news: Walmart will release its second-quarter earnings this morning, which is expected to show revenue growth of more than 3%.

The bottom line: The company wouldn't say if the platforms are driving profitable sales. Brenton said the focus is on creating experiences that drive engagement and shift perception of the next generation of shoppers.

• "It's a big bet."
• "We think that the next generation of commerce is immersive commerce, and so by showing up today and testing and learning, we are going to be so far ahead of our competitors in terms of creating these immersive-commerce experiences that actually do drive results," Brenton said.