In this file:
· Walmart announces next-day delivery, firing back at Amazon
· Challenging Amazon, Walmart launches free one-day online shipping
· Walmart’s Grocery Pickup Shoppers Aren’t Just Users, They’re Advocates
· Walmart International CEO Says It's Moving On After a Major U.K. Setback
Walmart announces next-day delivery, firing back at Amazon
Walmart is starting to offer next-day delivery for more than 200,000 items on its website.
The retailer’s rollout of next-day delivery will begin in Phoenix, Las Vegas and Southern California, before reaching 75% of the country by the end of the year.
Last month, Amazon announced free, one-day delivery becoming a new perk for all Prime members.
Lauren Thomas, CNBC
May 14 2019
Walmart is firing back.
The biggest retailer in the world will now offer shoppers the option to have their online orders delivered the next day, following Amazon, which on April 25 announced plans to spend $800 million for one-day delivery for all Amazon Prime members.
Walmart said Tuesday it is rolling out next-day delivery in Phoenix, Las Vegas and Southern California over the next few days and will expand it to reach roughly 75% of American consumers by the end of 2019, including 40 of the top 50 major metros.
Amazon hasn’t yet detailed a timeline for its own rollout of next-day shipping. But even before its April announcement, the company had offered same-day and two-hour delivery for Prime members in certain markets for certain products and at an additional cost. Amazon’s next-day shipping plan expands the number of items and ZIP codes eligible for expedited service.
Walmart isn’t disclosing the cost of its latest delivery push. But the company says it has been working on it for quite some time.
In January 2017, Walmart started offering free, two-day shipping for orders totaling more than $35, lowering its minimum purchase threshold from $50. It had already bought Jet.com for $3 billion in 2016 to juice its online business and compete with Amazon. That deal helped it reach shoppers in bigger cities, like New York, in less time.
“We have been working on this for the past several years,” Marc Lore, head of Walmart’s e-commerce business in the U.S., said about the move toward next-day shipping. “We’ve been investing ... and now we are in the position to reap the benefits.”
To start, next-day delivery will be available for about 220,000 items “most frequently purchased” online, Walmart said, including toys and electronics. The company said it plans to make more items available to ship next day over time. And the option is only free for orders over $35. Amazon, for comparison, has no minimum purchase threshold for free, next-day delivery but requires customers to have a Prime membership, which costs $119 annually.
“This is the future of the Walmart.com supply chain,” Lore said. “The more products we add to this experience ... the more profitable the orders will be.”
When Amazon made its one-day shipping the new standard for all Prime customers last month it sent shares of Walmart and Target tumbling, as investors worried bricks-and-mortar retailers would now have to spend more money to match the e-commerce giant’s steps. Walmart’s stock price was up 0.5% in Tuesday’s premarket. Amazon shares were 1% higher.
“It’s this nebulous thing called the Amazon effect,” said John Bonno, managing director in the retail practice at AlixPartners. “I think retailers are so afraid. ... [They’re] so nervous that any new service that Amazon offers, retailers feel they need to go through hoops,” to match it.
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Challenging Amazon, Walmart launches free one-day online shipping
The service debuts in Las Vegas and Phoenix. It'll launch in Southern California in a few days.
By Ben Fox Rubin, C|Net
May 13, 2019
Walmart is joining the race to make one-day shipping the new e-commerce standard.
Amazon last month announced plans to upgrade its Prime membership program in the US from two-day shipping to just one day. Not looking for Amazon to hog all the attention, Walmart on Monday unveiled its own plans to provide one-day shipping. Walmart had hinted that this effort was in the works soon after Amazon's announcement.
While Amazon plans to build up its one-day shipping capacity over the course of this year, Walmart started offering it new "NextDay" perk immediately, but only in Phoenix and Las Vegas and with a limited inventory of up to 220,000 items. Southern California is coming on board in a few days. By year's end, Walmart expects to reach about 75% of the US population.
There's one more very big difference between these competing programs: Amazon's requires a $119 annual membership, while Walmart's is free, so long as orders are $35 or more.
"We feel good about where we are and where we're going," Marc Lore, Walmart's head of US e-commerce, said in an interview. "We're expecting, based on research, customers to really appreciate the upgrade here."
Walmart's move could force other retailers to start offering more one-day and same-day shipping to keep up, providing shoppers with more choices and faster shipping times. The move could also put more pressure on Amazon and make it harder for the company to raise the annual price of Prime.
The new one-day shipping program continues Walmart's aggressive push to be a stronger online competitor to Amazon, after it seemed to ignore e-commerce for years, allowing Amazon to balloon into the juggernaut it is today. Walmart bolstered its online capabilities with the purchase of Jet in 2016 and a majority of India's Flipkart last year...
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Walmart’s Grocery Pickup Shoppers Aren’t Just Users, They’re Advocates
Retail Info Systems
Walmart’s grocery pickup service is experiencing rapid growth with no signs of slowing down. Walmart plans to have 3,100 locations offering grocery pickup by the end of 2019. To explore the usage of this retail technology, Numerator, a market intelligence firm, recently gathered data surrounding the service.
Numerator data showed Grocery Pickup shoppers are young, affluent households with children. They have the money to spend with little time to spare. These shoppers are willing to spend more using Grocery Pickup and tend to be more loyal to Walmart among other Grocery Pickup services.
Further, Numerator broke down how shoppers shop Grocery Pickup. Compared to in-store baskets, Walmart Grocery Pickup baskets are much larger and get larger with use. In addition, Walmart Grocery Pickup is more than grocery items, including health, beauty, and household item making up more than 50% of Grocery Pickup trips.
Data also showed that Walmart has the most to gain from Grocery Pickup, as consumers prefer it over the in-store experience. And when comparing Walmart Grocery Pickup against competitors, shoppers are satisfied with Walmart and will recommend it to others.
“A majority of Walmart’s Online Grocery Pickup users are not just users, but advocates, which projects positively for Walmart in the long-term,” Numerator reported. “Cultivating more advocates by delivering a consistently positive pick-up experience, while continuing to expand the service to more store locations, should position Walmart well in the omnichannel grocery arena.”
To further the service, Walmart dedicated around 40% of all ad spending to promoting online ordering over the past 13 months. Specifically, 67% of Walmart’s TV ad spend in January and February of 2019 focused on online ordering. The retail giant has also used digital coupons to promote Grocery Pickup from as early as May 2018. The retailer featured a $10 off digital coupon code on the front page of 60% of their circulars since late May 2018, and during late June and mid-July, the offer was upped to $10 off of the shopper’s first three orders.
According to Numerator data:
Walmart International CEO Says It's Moving On After a Major U.K. Setback
By Phil Wahba, Fortune
May 14, 2019
That was then, this is now.
That’s the attitude Walmart International CEO Judith McKenna is adopting for the company’s British grocery business Asda just weeks after U.K. regulators blocked Sainsbury’s proposed $9.5 billion (7.3 billion pounds) takeover of Asda, a major setback for both chains.
“Life moves on fast, and that’s really what it’s all about for us now,” McKenna said at the World Retail Congress in Amsterdam on Tuesday.
The companies had argued that the deal would lower prices for its customers, but the U.K. Competition and Markets Authority (CMA) felt otherwise, saying the transaction would have led to a substantial reduction of competition at both a national and local level, resulting in higher prices in stores, online, and at fuel service stations.
The proposed deal was aimed at helping Sainsbury’s better take on Tesco, and it was a way for Walmart to exit the U.K. as McKenna focuses her Walmart division on promising international markets like India and China. Walmart International operates in 26 countries and last year reported revenue of $120.8 billion.
“That was a bold move. We genuinely believed that creating this combination from a unique, one-off opportunity would have allowed us to accelerate lowering prices for all our customers,” said McKenna, who took over Walmart International in 2018 and is currently ranked No. 14 on Fortune‘s Most Powerful Women list...