News

Walmart battles Amazon with launch of same-day shipping

October 10, 2012

Rival retail giants Walmart and Amazon go toe-to-toe once again, with Walmart announcing Tuesday that it had begun testing same-day delivery for online purchases.

According to an article on nytimes.com, Walmart plans to make the instant delivery possible by shipping merchandise from local stores. If the program is successful, it could transform the more than 4,000 Walmarts, along with Sam's Club and other divisions, into distribution centers. By contrast, Amazon had fewer than 40 distribution centers in the U.S. at the end of last year and has plans to add about 20 worldwide this year, the article reported.

To receive merchandise on the same day, Walmart consumers must place an order before noon, and select a four-hour window when they want the items delivered. UPS is handling deliveries, with the current test including toys, sports equipment, home décor and electronics.

"Everybody in retail is terrified of Amazon, and they're terrified of losing more wallet share to Amazon," said Sucharita Mulpuru, an analyst with Forrester Research, in the article. The Walmart move is "to try to get ahead of the curve if Amazon does introduce something like this."

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