Dive Brief:
- Walmart has added online cake ordering for its bakery department, according to Yahoo Finance. Customers can now order and customize sheet cakes via mobile device or computer.
- Walmart, which told Yahoo Finance it sells one out of every four cakes in the U.S., began testing online ordering for sheet cakes last year before the wider rollout. Previously, customers had to fill out a form in person or place an order over the phone.
- In addition to online ordering, Walmart has introduced new bakery products including premium custom cupcakes, tiered cakes and first-birthday "smash cakes."
Dive Insight:
Walmart's omnichannel offerings have helped it become a dominant force in the grocery space, but there's been a gap when it comes to the bakery department, Kinna Thomas, senior buying manager for cakes at Walmart, told Yahoo. The absence of online ordering hasn't stopped shoppers from choosing to buy cakes from Walmart, but the added layer of convenience gives them one more motive to keep coming back.
The new feature comes as dessert sales at in-store bakeries generate $5.4 billion in sales annually, according to the Food Marketing Institute's "Power of Bakery" report. Shoppers turn most to this department in particular for sweets and indulgences. Additionally, the report found that 42% of millennials with children shop for bakery items most at supercenters like Walmart. While the data shows the retailer already has a captive audience of shoppers looking to make their celebratory bakery purchases there, online ordering could boost bakery sales even more.
The availability of new premium bakery products also signals Walmart's goal to appeal to more shoppers while still remaining relevant to its customer base. Walmart said it will continue to add more products and complicated designs in addition to current ones like "unicorn creations" and "Super Mario" cakes.
