News

Walmart launching next-day delivery in Vegas, SoCal and Phoenix

May 14, 2019

In an obvious response to Amazon's recent one-day delivery announcement, Walmart Inc. is rolling out next-day delivery this week to stores in Las Vegas, Phoenix and Southern California.

The move reflects retailers' investments to give consumers what they want and when they want it, given increasing shopper expectations on product access.

"We have been working on this for the past several years," Marc Lore, head of Walmart's e-commerce business in the U.S., told CNBC. "We've been investing ... and now we are in the position to reap the benefits."

Walmart expects to provide next-day service to three quarters of the U.S. by year's end. In April, Amazon stated it was offering one-day delivery for all Prime members — an effort reportedly costing the omnichannel giant $800 million, according to CNBC.

Walmart will offer next-day delivery on the "most frequently purchased" online items, and will expand that list as it expands the delivery program. The delivery is available to shoppers spending over $35.

"This is the future of the Walmart.com supply chain," Lore told CNBC. "The more products we add to this experience ... the more profitable the orders will be."

Target, noted CNBC, offers free two-day shipping for all of credit card holders, with no minimum purchase required.