Walmart steps up home delivery service to challenge Amazon

Share

In a press release, the company revealed plans to expand to more than 40 percent of homes by the end of 2018.

After testing out grocery delivery over the past two years in six USA markets, the largest retailer in the world said Wednesday it will bring the service to more than 100 metro areas in the United States over the coming months. Target announced earlier this year that it plans to offer same-day delivery of groceries from half of its 1,800 stores using Shipt, a delivery startup it recently acquired.

A Walmart employee shops for food to fulfill an online customer delivery.

Shoppers using the delivery service will be able to make their purchases on the grocery section of Walmart's website or through the Walmart Grocery app.

"Our commitment goes further than saving customers money", said Tom Ward, VP, digital operations, Walmart U.S. The stores will become the first ones to introduce its delivery program.

In October, Costco introduced a two-day delivery option for dry groceries and a same-day alternative for fresh goods through Instacart, a delivery service. After placing an order, Walmart sends one of its 18,000 personal shoppers (more will be added this year) to walk around the store and track down the items you selected. "This expansion is just adding the concept of delivery to the process that already existed". "Using our size and scale, we're bringing the best of Walmart to customers across the country".

Last month, Walmart shares got slammed as the company said online revenue growth slowed in the most recent quarter, raising questions about its ability to compete with Amazon.

The retailer also plans to offer a same-day delivery service in NY. Walmart says its staff pay special attention to picking produce and meat cuts so that customers needn't worry they're getting old, tired, or lackluster examples.

"We're going to gain customers who might not have access to a brick-and-mortar store", he said. But it will also continue to work with services such as Uber for deliveries, which will carry a $9.95 fee and require a minimum order of $30.

Share