Walmart Inc WMT has announced plans to invest $14 billion to become “the primary destination for customers."

What Happened

The retail giant said in its fourth-quarter announcement that it was going to spend $14 billion on enhancements, including in automation, supply chain and other areas that might boost long-term sales.

Walmart CEO Doug McMillon also underlined how important the further development of e-commerce is.

“We weren’t the first place you go to buy products online. We're trying to change that, obviously,” he said, in a possible reference to Amazon Inc. (Nasdaq: AMZN). 

Why It Matters

The company reported 69% growth in its e-commerce business in the fourth quarter and said it expected $100 billion in e-commerce revenue in the next couple of years.

McMillon also said that developing sales online is not an easy thing to do right away: “You’ve got to have assortment, you’ve got to have the price, you've got to provide service, you’ve got to deliver when you’re supposed to deliver. ... And it takes some time to build those kinds of capabilities."

Image: Walmart Instagram