Walmart Testing Same-Day Delivery
Take that, Jeff Bezos!
Walmart appears intent on blunting any advantage that Amazon.com might gain from expanding its same-day delivery service by testing a similar option of its own.
According to numerous reports, Walmart is testing same-day deliveries in Minneapolis, Northern Virginia, Philadelphia and the San Francisco Bay area. The retailer first tried out the concept in San Jose in 2010 and expanded the test to San Francisco last year.
Consumers in test markets have the option of placing orders before noon and then choosing a four-hour window for UPS to make deliveries. Consumers will have roughly 5,000 items from which to choose, including consumer electronics and toys. Deliveries, regardless of the number of items ordered, will cost consumers $10. Walmart has set a minimum order amount of $45 in California.
"Connecting our website with 4,000 physical stores across the country really gives us a leg up," Ravi Jariwala, a spokesperson for Walmart, told The Washington Post.
Amazon began testing same-day delivery, according to The Associated Press, in 2009. It currently has the service available in 10 markets around the country.
A report by the Financial Times in July speculated that Amazon was building distribution centers around the country to enable it to roll out same-day service on a wide scale.
"Everybody in retail is terrified of Amazon, and they’re terrified of losing more wallet share to Amazon," Sucharita Mulpuru, an analyst with Forrester Research, told The New York Times.
- Same-Day Delivery Test At Wal-Mart – The New York Times (tiered sub.)
- Wal-Mart tests same-day delivery for holidays – The Associated Press/USA Today
- Wal-Mart tests same-day delivery in Northern Virginia – The Washington Post
- Rumor Mill: Amazon Exploring Same-Day Delivery – RetailWire
- Amazon finds upside to sales tax payment – Financial Times (tiered sub.)
Will same-day delivery service on a wide scale from either Amazon.com or Walmart be a game changer in retail? What unintended consequences do you think may arise from the availability of same-day deliveries by retailers with a national reach?