TikTok could be Walmart's ticket to young shoppers
Walmart's efforts to join Microsoft on a TikTok acquisition could serve young shoppers to the retail giant on a silver platter.
The big picture: The Trump administration has been forcing a sale of TikTok due to ongoing national security concerns over ByteDance, it's Chinese owner. The app is most popular with young people who could be the future of Walmart's customer base, AP notes.
- Young people are more inclined to shop digitally, driving social media apps including TikTok and Instagram to build in-app shopping functions.
- TikTok could give Walmart a platform to promote its online products. The retailer could also get a cut of revenue from other dealers' in-app sales.
Between the lines: Digital shopping is up dramatically during COVID-19 due to social distancing. Walmart's online sales almost doubled last quarter due to a rise in online grocery shopping, AP adds.
- But Walmart’s online sales still pale in comparison to Amazon, who rules the e-commerce arena.
What to watch: TikTok will be banned from the U.S. if no acquisition is completed by Sept. 15.
- TikTok has sued the Trump administration to block the shutout.