Walmart follows Target to enter retail shipping wars

Mae Love
May 16, 2019

"Contrary to what you might think, it will cost us less - not more - to deliver orders the next day". However, it is soon going to be made available to customers in California, and the company wants to gradually expand the service to the rest of the country. By the end of 2019, Walmart expects to reach roughly 75 percent of the USA population. That's exactly what Walmart just did by offering its own version of one-day shipping, albeit on a much smaller scale.

Retail giant Walmart Inc (NYSE: WMT) said Tuesday it will be able to offer 75 percent of the USA population a one-day delivery option by the end of the year.

Membership will not be required, Mark Lore, president and CEO of Walmart eCommerce U.S., said in a memo posted at its website. It is available on orders of $35 or more. By doing that, Walmart deliveries travel the shortest distance and will typically only require one box for transport. The move follows on the heels of Amazon's recent rollout of 1-day delivery.

And, today, to complement our same-day Grocery Delivery, we're excited to announce a new offering we've been working on for a while now.

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Amazon put the retail world on notice when it announced plans to evolve its core Prime shipping time from two days to one.

The company also created a grocery pickup and delivery service that is expected to provide pickup in 3,100 stores and delivery from 1,600 stores by the end of the year, covering 80 and 50 percent of the USA population, respectively. Everything in the cart must be eligible for next day delivery to qualify.

Lore pointed to the development of Walmart's two-day shipping and one-day grocery delivery programs as key to the development of NextDay. "That's in contrast to online orders that come in multiple boxes from multiple locations, which can be quite costly". Target already offers free one-day shipping, but only to members of its REDcard loyalty program, which does not carry an annual fee. They'll find toys and electronics in the separate tab for the feature, as well, though the items available will vary depending on their location.

He also said the recently implemented tariffs on Chinese imports will not hurt demand as most are best-sellers and popular items that shoppers will keep buying even if prices rise.

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