It's becoming almost not a thing to hear about high-end fashion brands or retailers who are entering the metaverse. You've got a Gucci here, and a Gap there, and a Nike over here. So, when the news broke over the Martin Luther King, Jr., weekend that Walmart (WMT 1.32%) had filed a number of trademarks related to metaverse retail, well, that was something worth paying attention to.
Although it's unclear at this time what Walmart intends to do in the metaverse, or which platform it'll take up residence on, this is a major sign of things to come in 2022. If you've been on the fence about the viability of virtual real estate as an investment, the presence of a Walmart on every virtual corner may be the thing that drives home how real this metaverse thing is becoming.
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Walmart's trademark filings and the metaverse
In December, Walmart quietly filed a number of patents related to retail activity in the metaverse, including one for a Walmart-branded cryptocurrency and others for "virtual merchandise" and non-fungible tokens (NFTs). Taken individually, these things could each be an attempt to enter the metaverse in a small way, but together, well, they imply a few things.
One of two possibilities is brewing here. Well, one of three, if you include the potential that nothing will come of this at all, but we're going to assume it's a given that this experiment of Walmart's may well be just that.
First, Walmart may be considering pioneering its own metaverse platform, as other big names seem to be attempting, despite the fact that there are several very viable platforms already in existence that should more than accommodate interested parties; plus, Walmart has never been exactly at the forefront of technology. Sorry, Walmart. But you know, e-Commerce was a real struggle for Walmart to master, so forgive me for thinking that building its own metaverse is going to be a bit out of character for the retail giant.
However, and secondly, what's far more likely is that Walmart is about to set up shop in the metaverse. Somewhere. And that's frankly exciting, even if you have objections to Walmart or its business practices. Walmart walking into the metaverse and building a Supercenter says a lot of things about the long-term viability of the metaverse all at once.
Will Walmart crush metaverse retail competition?
Because so many companies are flocking to the metaverse to claim their metaverse real estate and corresponding structures, there are necessarily retailers headed there, too. So far, they've largely been fashion retailers focused on NFT accessories for avatars, but there's no reason that has to be the end of it. After all, there are architects developing the metaverse, so why shouldn't there be furniture shops to outfit those structures?
Anyone who has been inside a Walmart knows that it's kind of a low-end attempt at being all things to all people. If you need a cheap side table, you go to Walmart. If you want a box of candles for a winter storm, Walmart. Of course, in the real world, it also offers things like groceries and medicine, but those don't exactly apply to the metaverse. Or do they?
As far as a metaverse experience goes, you don't need food or meds, but some leaked concept video from a five-year old experiment for Walmart shows a virtual shopper buying very real products in a virtual Walmart store. And while that was an eon ago in metaverse time, the fact remains that Walmart has applied for trademarks for "Verse to Store," "Verse to Curb," and "Verse to Home," which anyone could easily interpret to mean "Metaverse to..."
A trailblazer of metaverse real estate
So, your next venture into the metaverse might be to see a concert or hang out with your friends during upcoming Fashion Week in Decentraland, but it could also spell a stop to the metaverse Walmart, where you can pick out very real snacks to be delivered in time for your metaverse-based event.
This was bound to happen. And retailers who are looking for metaverse real estate need to pay attention. Marrying e-Commerce with the metaverse is a simple way to increase the value of any metaverse retail location, especially if the business in question also sells real-world items. No matter how big or small the store, it's not hard to imagine offering an NFT t-shirt and the corresponding real-world version that shows up in four to six weeks.
Metaverse retail real estate investors should watch this space closely -- Walmart getting into the world signals that the boom has just barely begun. Your empty virtual shopping malls and storefronts need to be ready for the coming storm. They should be special and worth exploring, since your lessees are about to be in competition with one of the world's biggest retailers. They will need to bring the same oomph to the metaverse as they have in the real world in order to remain competitive.
