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15 March 2018, 02:31 | Cedric Leonard
Walmart will soon deliver groceries to nearly half of US shoppers. Business Insider Hayley Peterson
Those deliveries will cost $9.95, with a $30 minimum. Sigman has been optimistic about the company's "click and collect" option - which allows customers to shop online through its website and pick up groceries at Walmart's physical locations - seeing it as an opportunity to drive incremental sales growth. It also comes at a time of intense competition within the grocery space and follows Amazon's purchase of Whole Foods previous year.
Walmart says it will continue to use of ride-hailing services like Uber to deliver the goods to shoppers' homes as it expands its service. 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.
Though many companies, Amazon in particular, are now working to shorten the supply chain with grocery delivery, with this move Walmart gains greater control over its supply chain on the production side. "I think that's probably the most important aspect of this". Jet now offers grocery delivery in some markets through traditional mailing services such as Federal Express, the article noted. If all goes to plan, 40 percent of the U.S. population will have the option to pay $9.95 and have their groceries picked and delivered to their front door in just a few months. "We are extremely happy with the results that we have had out of the USA", he added, noting the company does not have a specific timeline in mind for the rollout.
Relying on third-parties for delivery could ultimately be a disadvantage, however. Also, the company has been testing same-day deliveries with Deliv for quite some time.
But the Amazon threat still looms even with Walmart's sizable physical footprint on its side. Moreover, the recent kitchen product launches, including a wide variety of meal-kits, are expected to benefit from improved delivery services.
"'We are gaining new customers who might not have had access to Walmart previously, ' Ward said about what he's learned from the pilot test of grocery delivery thus far". The stage for the grocery-delivery war is set: Now we just have to see if consumers are actually interested.
However, with both grocery pickup and delivery, Walmart is able to leverage its square footage to its advantage.
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