Walmart Targets eBay in Collectibles
The American retail powerhouse Walmart (WMT) is setting its sights on eBay (EBAY) as it seeks to capitalize on the surging demand for collectibles.
Significant Sales Growth
A report from Chain Store Age reveals that trading card sales on Walmart Marketplace have increased by over 200% year-over-year. While collectibles like baseball cards have long been a staple of American culture, they were not traditionally linked to Walmart.
Walmart’s First Appearance
That connection is changing as Walmart prepares for its first-ever presence at the National Sports Collectors Convention, taking place this weekend at the Donald E. Stephens Convention Center in Rosemont, Illinois. This follows Walmart’s recent hosting of its third annual digital event, Walmart Collector-Con, where it announced plans to participate in major collectible events throughout the year.
Enhanced Online Collector Shop
Walmart Marketplace is expanding its offerings to include graded singles, sealed boxes, sports memorabilia, coins, comics, and more. A new online collector shop, set to launch in the fall of 2024, will feature tools that allow customers to search for collectibles by various criteria, such as team, event, card number, autograph, and edition.
Supporting Sellers
The retailer is also improving the onboarding process for collectible sellers, aiming to provide a more consistent and efficient experience with detailed guidance. Additionally, Walmart is partnering with WeTheHobby, a collectible livestreamer, to start a livestream series on the Walmart Live platform this fall, coinciding with the NFL season.
Collaboration with Mascot
As part of its initiative to assist collectible sellers, Walmart has teamed up with Mascot, a platform that helps manage listings across leading sales channels. This move aims to enhance Walmart’s general merchandise division, which has seen limited growth in recent years.
Expanding Market Opportunities
The global collectibles market was valued at approximately $294.23 billion in 2023 and is projected to reach $422.56 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.5% from 2024 to 2030. This growth is driven not only by investors seeking profit from rare items, such as cards and comic books, but also by the desire to preserve cultural and emotional connections.
eBay’s Position
In the meantime, eBay is reinforcing its role as the leading online platform for buying and selling collectibles, notably through its strategic alliance with Professional Sports Authenticator (PSA), which specializes in trading card authentication and grading.
Walmart’s Stock Analysis
On TipRanks, Walmart holds a Strong Buy consensus based on 28 Buy ratings, with its highest price target set at $120. The consensus price target stands at $111.33, suggesting a potential upside of 13.15%.
