The extra cost may hit Walmart's bottom line, but increased spending on grocery delivery is seen as essential in the fierce battle for online orders for food and household staples. The main aim of the Walmart is to serve their customers with affordable price, said by Tom Ward, Vice President, Digital Operations, Walmart US.
The retailer is launching the service, which offers same-day delivery in as little as three hours, across the United States this year, the company announced Wednesday.
Walmart Inc will expand its grocery home delivery services to reach more than 40 percent of USA households, or 100 metro areas from an existing six, as the retailer steps up a fight against rival Amazon.com Inc. "Using our size and scale, we're bringing the best of Walmart to customers across the country". The customer selects the window whenever they want to pick groceries curbside, at the checkout point, this can be delivered on the same day as per the customer's comfortability. It has been investing in online grocery over the year, that was initially started up with the curbside pickup and later, went on expanding all over the US. With fiscal year 2018 revenue of $500.3 billion, Walmart employs approximately 2.3 million associates worldwide.
Convenience is now the name of the game when it comes to shopping, and several companies are hoping that will expand to include grocery shopping as well. Other delivery companies will be added later this year.
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The online retail giant bought whole foods past year for $13.7 billion.
So far, Walmart has 18,000 employees shopping for online customers in its stores, Ward said. The service requires a minimum order of $30.
"We're 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", Greg Foran, the CEO of Walmart U.S., stated in a news release.
Walmart Inc. has also been testing a service using its USA store workers to drop off general merchandise like toys and bedding to customers' homes after they finish work.