Walmart expanding online grocery service

  • Walmart expanding online grocery service

Walmart expanding online grocery service

Walmart Inc. plans to expand its grocery home-delivery service to more than 100 metro areas this year, a sign its food fight with heating up.

The expansion will open up the retailer to 100 metropolitan areas, reaching more than 40 percent of US households. With all those new cities, the service will eventually reach 40 percent of United States households, the company said.

The largest US retailer is leveraging its stores to roll out online grocery deliveries from 800 Walmart stores by the end of the year.

In a statement, theBentonville, Arkansas-based retail giant claimed that the expansion of its same-day home delivery service from six markets to 100 metropolitan areas will enable it to serve more than 40 percent of US households. Other retailers such as Kroger and Target have been partnering with third-party providers such as Instacart, Deliv and Shipt.

Walmart has been beefing up its online grocery options, including buy online, pickup in store and a pilot for in-fridge deliveries. The retailer did not specify which markets will offer the service as part of the latest expansion, but Tom Ward, vice president of digital operations, said Walmart will be aggressive with the rollout.

It expects to make online order pickup of groceries available at about 2,200 stores before 2019. "We will leverage our footprint where it makes the most sense".

Walmart is making a major push into online grocery delivery.

With greater control over how its produce is grown, Walmart could vertically-integrate, manage crop yields more effectively, and draw shoppers with transparency and sustainability.

In Walmart's case, the orders will be picked by in-store employees, who will receive three weeks of additional training.

"We're going to continue to look for ways to utilize our stores and our e-commerce teams together and our businesses together because we believe long-term that's where we win as a company, is getting those two things in sync", Chief Financial Officer Brett Biggs told investors during a presentation at the Raymond James Institutional Investors conference last week. The test included five other markets: Phoenix; Denver; San Jose, Calif.; Tampa, Fla.; and Orlando, Fla.