Walmart expands grocery delivery in a big way
Walmart is giving Amazon and its newest acquisition a run for its money in the online grocery delivery war.
Walmart is expanding its online grocery delivery service to 800 stores by the end of the year, a move that will serve more than 40% of U.S. households. The program, which is currently available in six markets, will grow to serve more than 100 metro areas across the country.
Customers can place orders online or through the Walmart Grocery app. Both options enable shoppers to purchase fresh produce, meat, seafood and bakery items, along with pantry staples, consumables and seasonal general merchandise. All items feature the same prices found in Walmart stores, Tom Ward, VP, digital operations, Walmart U.S., said in a blog on the company’s website.
Personal shoppers and crowd-sourced delivery services are used to shop for and deliver fresh groceries to customers’ doorsteps. More than 18,000 personal shoppers are involved in the program, and “thousands more” will be added this year, according to Walmart.
To participate in the program, associates must complete a three week training program that teaches them how to pick merchandise, including selecting the freshest produce, and the best cuts of meat. More than 800 Walmart stores will be used to fulfill orders, the discounter reported.
The Groceries Delivery service costs $9.95, and requires a $30 minimum order. Orders can also be delivered the same day.
The service is augmented by Walmart’s Online Grocery Pickup service that allows online customers to pick up orders at stores without ever getting out of their cars. The service is now available in 1,200 stores. Another 1,000 locations will be added this year, according to Walmart.
Walmart’s decision to expand its grocery delivery service takes a swing at Amazon as it expands its own grocery delivery service. The online giant announced last month that it launched free, two-hour deliveries of natural and organic products from Whole Foods through its Prime Now program in Atlanta and San Francisco. The service initially launched in January in Austin, Cincinnati, Dallas and Virginia Beach, with plans for continued expansion across the U.S. throughout 2018.
Kohl’s to manage omnichannel operations in the cloud
Kohl’s is modernizing its technology so it can better compete in a digital marketplace.
The department store chain made a multi-year investment to fund the migration of its omnichannel systems and applications to the cloud. The move will modernize the company’s technology footprint, which will help Kohl’s to deliver a seamless, best-in-class omnichannel customer experience.
The technology investment will enable the company to replace legacy systems with those in the cloud. These are more flexible systems designed to enhance operational efficiencies and reduce long-term costs. The migration includes solutions connected with e-commerce, mobile, and business operations.
Kohl’s has already transitioned its website to the cloud, which already delivers customers a faster digital experience. As Kohl’s continues migrating systems and applications to the cloud, the company can focus on how to use its IT operations to further drive efficiencies and business value.
“Kohl’s is uniquely positioned at the forefront of retail’s cloud computing capabilities to transform our operations and equip our team to meet short- and long-term technology needs,” said Ratnakar Lavu, Kohl’s executive VP and CTO. “Cloud has become the foundation for this transformation and brings our teams greater flexibility to scale resources, react quickly and more cost effectively, and in turn, deliver a great experience to our customers.”
Study: The markets where Amazon doesn’t dominate are…
Amazon continues to grab consumer wallet share, but Walmart is holding its own in some markets.
Walmart still enjoys more than 60% share of spend among millennials in Florida and Texas, and has maintained a far more stable share of the market over the past three years, according to data from consumer payments data firm Arm Insight.
According to data, Florida consumers’ Walmart spend is more than twice that of their Amazon spending. This is more than twice their Target spend.
While Walmart is holding its own in these regions, Amazon continues to gain considerable ground on the discount giant — and this momentum is much more pronounced in California and New York. Here, the online retailer overtook Walmart in share of spend in December 2016, and again for good in May 2017.
Since May, Amazon has increased from just over one-third share of spend to nearly half. It is a similar story in the nation’s capital, where Amazon spend across all generations is more than Walmart and Target combined — a percentage that includes all online and in-store sales. As a whole, Amazon has 51% of consumers spend, Walmart earned 34%, and Target gained a mere 15%.
Spending share is even more pronounced from a millennial perspective, where Amazon grabbed 53%, Walmart gained 30%, and Target lagged with 17%, the data revealed.