Walmart has significantly expanded its rapid delivery service, promising to fulfil orders within 30 minutes in 38 markets across the United States. The expansion, announced by President and CEO John Furner during a quarterly earnings call, aims to bring faster delivery to millions more customers, despite the added charges associated with the service.
Rapid Expansion in Delivery Service
Originally introduced in May in 33 locales such as Dallas, Chicago, Houston, Denver, and Atlanta, Walmart has since rolled out the service to additional territories including Nashville, Omaha, San Antonio, Wichita, and Winter Haven. This move reflects Walmart’s strategy to deepen customer engagement by offering speedier fulfilment options.
Furner emphasised that customers who indulge in the fast delivery service tend to shop more frequently and are more likely to become subscribers to Walmart+, the company’s membership program. “Our advancements in delivery speed provide customers more reasons to choose Walmart for their shopping needs,” Furner stated.
Meeting Demand for Speed
Amidst a trend where multiple retailers are enhancing their delivery speeds to meet customer demands, Walmart has positioned itself by broadening its fast delivery services. This aligns with their efforts to grow through advanced fulfilment strategies, evident from their partnership with Wing for drone deliveries and the provision of one-hour delivery at numerous Sam’s Club stores.
According to Walmart, the gross merchandise value relating to fast deliveries—those completed in three hours or less—saw a 48% increase year over year in the second quarter. “Speed matters, and we have a distinct competitive edge,” noted Furner, pointing to Walmart’s extensive physical infrastructure and local delivery capabilities as factors empowering them to efficiently service customers while controlling costs.
Cost and Customer Willingness
Despite the additional expenses tied to quicker delivery, such as the $10 fee charged to Walmart+ members for the 30-minutes-or-less service, customer uptake has been substantial. Chief Financial Officer John David Rainey highlighted that 37% of store-fulfilled deliveries were for orders where the faster service fee was paid—a record percentage.
Role of Stores and Automation
Walmart’s physical locations continue to be pivotal in their delivery network, responsible for over 40% of the growth in store-fulfilled deliveries for the quarter. They handle 80% of e-commerce order fulfilment, with the number rising to 100% for rapid deliveries.
Automation is also playing a larger role in Walmart’s operational efficiency. Rainey disclosed that automated freight handling is employed in 3,100 U.S. stores, optimising inventory movement and delivery speed. This automation helps intensify the economics of Walmart’s omnichannel model by improving logistics density and utilisation.
Reporting based on coverage first published by retaildive.com.