Walmart's rollout of next-day delivery will begin in Phoenix, Las Vegas and Southern California this week, before reaching 75% of the country by the end of the year.
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% of American consumers by the end of 2019, including 40 of the top 50 major metros in the U.S., according to Walmart.
In January 2017, Walmart started offering free, two-day shipping for orders totaling more than $35, dropping its minimum purchase threshold, which had been $50 up until then. 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.
"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."sent shares of Walmart and Target tumbling, "Walmart wants to make the promise they are doing everything they can to be as convenient as possible," said Laura Kennedy, a retail analyst for consulting group Kantar. "They have to meet shoppers' expectations. ... Amazon has set those for the last 10 to 15 years."A recent report from UBS estimated it would cost Walmart $215 million in incremental investments, based on the company's e-commerce revenues, to match Amazon's one-day shipping offering.
If a shopper wants a pack of diapers, a Star Wars toy, a coffee mug and a pair of headphones delivered the next day, for example, all of these items will need to be available at one warehouse. If one item isn't available, the shopper will be presented with the option to "save it for later," and order the others for the following day. Or, the shopper can still order everything — likely receiving the shipment in multiple boxes — for two-day delivery, or beyond.
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