In efforts of competing with rival retailers like Amazon, Walmart is planning on delivering supermarket items to 40 percent of homes nationwide by the end of the year. Walmart currently only offers home delivery of groceries to six markets but plans on expanding into 100 new cities around the United States. Although the company has invested heavily in efforts of keeping up with consumer tastes, it experienced a 23 percent slowdown in its online sales-growth; less than half the growth rate for each of the previous three months.
Greg Foran, Chief Executive Officer of Walmart U.S, explained that the company is “saving customers time by leveraging new technology, and connecting all the parts of our business into a single seamless shopping experience: great stores, easy pickup, fast delivery, and apps and websites that are simple to use.” Walmart requires that the order be a minimum of $30 and charges $9.95 fee for its grocery delivery service.
In an additional effort to support and strengthen its online sales, Walmart aimed to accelerate its web-based grocery business by increasing the number of stores that customers can order food online from and pick up in stores. The service is currently only available at 1,200 stores but should grow by 1,000 locations. It was not long until other players hopped on the wagon. Target announced that it will be acquiring Shipt, an online same day delivery service, for $550 million. Kroger anticipates on increasing the number of cities it offers home delivery of groceries through that use of Instacart, and Amazon plans on expanding the number of cities it could provide same day deliveries for.