Delivery Wars Update

Amazon launched its Prime delivery service for members in 2005, but that head start is not deterring the world’s biggest retailer! This week Walmart announced its own membership service - Walmart+ - set to begin on September 15, 2020. Online shopping is becoming the norm because of the COVID-19 pandemic, and Walmart’s online sales are growing, expecting to take 6% of all online sales in the U. S. in 2020. While impressive, it pales and is a distant second when compared to Amazon’s 35%.

NBC News reported that 90% of all Americans live within 10 miles or less from a Walmart store. With each store being capable of acting as a distribution center, this is a huge advantage. Over 160,000 items will be available, including groceries. Orders of at least $35 will qualify for same day delivery and, as everyone knows, it is not hard to spend $35 at a grocery store. In the Richmond community, Walmart had the top spot for market share for the third reporting period in a row, based on a report released in June that covered the reporting period of April 1, 2019 through March 31, 2020. Walmart’s spokesperson says that the company is doing this to meet its customers’ needs.

Walmart+ will cost $98 per year, while Amazon Prime is currently $119 per year. It will be interesting to see what impact Walmart+ has on Walmart’s standing in the Richmond community’s Grocery Wars. Stay tuned!