Walmart to expand online grocery delivery across the US

Mar 15, 2018, 02:31
Walmart to expand online grocery delivery across the US

The retail giant has eschewed delivery in the past, choosing instead to focus on a lower-cost store-pickup service.

While Walmart will normally charge a $9.95 delivery fee on orders that total a minimum of $30, if you use the code FRESHCAR you can try it for free. Since acquiring the premium supermarket chain, Amazon has worked quickly to roll out grocery delivery under the Amazon Prime umbrella. A Walmart source says that their theoretical plan is to eventually expand this on-demand delivery program to ten or so other cities where Walmart "hasn't built a store presence", assuming there are even ten cities that would qualify for that.

"The service, which has become a customer favorite and touted as a "Grocery Hero" for moms on the go and time-strapped families, is now available in 1,200 stores with 1,000 more to be added this year", Walmart added.

That means both Amazon and Walmart have a lot of potential business they could move online in future years - if consumer behaviors eventually change.

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Despite the increased money and attention from retailers, online grocery remains a tiny part of the roughly $800 billion grocery business in the US.

The expansion will open up the retailer to 100 metropolitan areas, reaching more than 40 percent of USA households. Other delivery companies will be added later this year.

Relying on third-parties for delivery could ultimately be a disadvantage, however. Those orders would then be delivered through crowd-sourced delivery platforms. The only option was to cancel the entire thing and start over, I was told. Moreover, the recent kitchen product launches, including a wide variety of meal-kits, are expected to benefit from improved delivery services.

Walmart is delivering groceries to shoppers across the US.

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Online sales comprise just a fraction of the $800 billion USA grocery market - a smaller share than in countries like the United Kingdom or South Korea - but consumer acceptance is growing.

Walmart may be somewhat late to the local grocery delivery sphere, but it has massive reach. It can house online orders in big coolers in the back ahead of customers' arrival, and it can repurpose existing store staff to prep the online orders as they arrive.

Walmart is to expand its American home delivery service from six to 100 cities by the end the year as it seeks to compete with Amazon. These associates must complete a three-week training program learning how to select the freshest produce and the best cuts of meat for online grocery customers, stated the release.

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