Competitor Intelligence: Walmart expands same-day grocery delivery service

October 15, 2013
Profitero
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Profitero

Walmart, the world’s largest retailer, has announced that it is adding Denver as a test market for same-day delivery of groceries ordered online. This move follows the launch of AmazonFresh earlier this year, with both retailers battling for a share of the fast emerging US online grocery market.

Walmart is rolling out “Walmart To Go”, its same-day grocery delivery service to Denver following the company’s ongoing tests of grocery delivery in San Jose and San Francisco.

Same-day delivery is available for orders placed before 8am in the Denver market and returns can be handled at the time of delivery, in-store, or by driver pick-up. Walmart To Go online groceries will carry the same prices as the Walmart stores located in Denver.

Customers can choose from tens of thousands of eligible items online, including fresh produce, dairy and bakery items, as well as non-grocery items such as health and beauty and electronics.  The retailer anticipates expanding the assortment of eligible items as the test progresses.

Commenting on the expansion, a spokesperson for Walmart said: “Since launching the same-day home delivery test for general merchandise last year, we have seen customers using a combination of both same day and next day delivery options, and we’ve seen thousands of orders. We’re excited to expand and offer a closed beta for groceries in Denver.”

At the same time as its expansion of same-day grocery delivery, Walmart also announced that its eCommerce sales are on track to meet or exceed the company’s earlier projection of $10 billion this year, and would reach $13 billion in 2014. Walmart.com now offers 5 million SKUs, up from 2 million last year.

The market for online grocery shopping is predicted to grow to 11 percent of U.S. grocery spending by 2023, up from 3.3 percent currently. According to the study from retail consultancy Bricks Meet Clicks, wealthy shoppers and young Internet users labelled “millennials” will lead US consumers into an increasingly broad adoption of online grocery shopping which U.S. supermarkets must quickly adapt to. Combined, these two groups represent a fifth of all grocery shoppers and are the two most likely groups to shop online.

As competition in the US online grocery market looks set to intensify, find out how Profitero provides reliable price intelligence to six of the top 10 European grocery retailers. To ensure you remain competitive to today’s value-driven shopper, contact sales@profitero.com and discover how we can help you stay one step ahead of the competition.

       

 

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