Walmart will now offer shoppers the option to have their online orders delivered the next day.
on Tuesday is beginning its rollout of next-day delivery, starting in Phoenix and Las Vegas, the company announced in a blog post. The option will be available in Southern California over the next few days. And it will expand to reach roughly 75 percent of American consumers by the end of 2019, including 40 of the top 50 major metros in the U.S., according to Walmart.Amazon hasn’t yet detailed a timeline for its own rollout of next-day shipping.
“We have been working on this for the past several years,” Marc Lore, the 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.” as investors worried bricks-and-mortar retailers would now have to spend more money to match the e-commerce giant’s steps.
Lore had told analysts during a meeting last fall that Walmart was already capable of reaching 87 percent of the country with next-day delivery. Walmart has done “extensive work” to make sure it has the right items at the right fulfillment centers, Lore said. The company isn’t planning to source next-day shipments from its stores.If Walmart finds out this effort isn’t profitable, the company will stop offering it, said Sucharita Kodali, a retail analyst at Forrester Research. She compared it to when Amazon started offering overnight delivery on shoes to compete with Zappos.com. Then Amazon bought Zappos.
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