In this file:


·         Walmart's Online Grocery Momentum Looks Poised to Continue

·         Walmart Counters Amazon With Quick, Cheaper Delivery Service And More

·         Report: Online grocery sales could double within four years



Walmart's Online Grocery Momentum Looks Poised to Continue

While Amazon remains quite dominant in traditional e-commerce, Walmart is seeing good traction in the part of its e-commerce business that can leverage its bricks-and-mortar empire.


Eric Jhonsa, TheStreet

Sep 20, 2019


Walmart (WMT - Get Report) has been facing -- and will likely continue to face -- an uphill fight against (AMZN - Get Report)  in traditional e-commerce.


But in the field of online orders that are picked up or delivered from local stores, Walmart currently looks like the hands-down leader in the U.S.. And that in turn could give Amazon additional motivation to extend its grocery store investments beyond Whole Foods.


For those unfamiliar, the Walmart Grocery website and mobile apps let consumers place orders (subject to a $30 minimum) for items in stock at nearby Walmart stores while paying the same prices charged within the stores. They can subsequently opt to pick up an order from a store during a selected 1-hour window for no extra charge, or have it delivered during a selected 1-hour window for a fee of $7.95 to $9.95 plus tip (food delivery firm DoorDash has been handling many of these deliveries).


It's worth pointing out here that the name "Walmart Grocery" is a bit of a misnomer, since Walmart's local delivery and pickup services also cover many non-grocery items -- everything from clothes and toys to electronics and sporting goods. Almost anything that's available at a local Walmart store and can fit into a car is fair game.


Having used Walmart's grocery pickup service a couple of times, I can say that it both saved time and provided a better customer experience relative to navigating a crowded Walmart store to make purchases the old-fashioned way. Walmart sends an e-mail and a text message when an order is ready, after which a customer can check in via the Walmart Grocery app while on the way. The customer then pulls up to one of the designated grocery pickup parking spots outside of a store, and either uses the app to let Walmart know the spot number or gives his or her name to a nearby employee. After that, the order is typically wheeled out to the parking spot within a couple of minutes (there are also vending machine-like pickup towers and lockers inside of some stores).




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Walmart Counters Amazon With Quick, Cheaper Delivery Service And More


Walter Loeb, Forbes

Sep 20, 2019


As even every school child knows, Amazon Prime has an annual price tag of $119. Now, Walmart plans to one up that and rush groceries for an annual fee of $98. So, it is now up to Amazon to respond – reduce its Prime membership fee to $98 in order to stay competitive or risk losing business.


In the meantime, Walmart thinks it can use its seven warehouses to match the 100 e-commerce warehouses. Walmart plans to deliver about 75% of its customers within the next day if the order has been placed by 3 pm. According to Marc Lore, CEO of Walmart e-commerce, “people think the more warehouses you have means the faster things are going to be”. He feels that Amazon’s decision to build so many warehouses is very expensive and may be inefficient. In contrast, he sees the power of using the thousands of Walmart supercenters throughout the United States to get products – especially groceries – to customers quickly and efficiently. Three quarters of the merchandise that is most in demand can be found in supercenter stores, and the rest of the SKUs can be shipped from any of the seven warehouses. As a result, fresh and frozen categories, along with a limited selection of general merchandise, can cost effectively be sent on this new membership plan.


I made a recent purchase on that was delivered the next day. It is evidence that the orders are filled quickly and efficiently; the use of smart computers is clearly working successfully behind the scenes. That works for me, because I certainly want to have my groceries quickly and in a fresh state.


Lore also indicated a change of direction for future acquisitions...





Report: Online grocery sales could double within four years


BY Al Urbanski, Chain Store Age

September 19, 2019


Grocery-anchored shopping centers have long been favored by real estate investors. Neighborhood centers without supermarkets average cap rates of around 8%, while ones with a grocery hover near 5%. The lower the cap rate, the more expensive the property, so grocery-anchored centers remain in high demand.


But a new study from Met Life Investment Management called “A New Dawn in Retail” predicts that online food sellers like Instacart, Amazon, and Peapod will cut more significantly into brick-and-mortar sales in the next few years. Now at 2.5% of market share, the e-coms could advance to a position of 7% or more by 2023.


Armed with data that allows them to customize their offerings to specific neighborhoods, grocers are already trimming their inventories and downsizing heir store footprints, the report noted. The average size of a Publix or a Whole Foods is 45,000 sq. ft., close to the minimum size for a grocery categorized as a supermarket. The average size of a Sam’s Club Now, a mobile-first shopping experience, is 32,000 sq. ft...