The service, which offers same-day delivery in as little as three hours, will be expanded from six metro areas to more than 100, ultimately reaching more than 40% of USA households by the end of the year.
The retailer also plans to offer a same-day delivery service in NY.
He said Walmart will be "aggressive" with the rollout and plans to eventually make the service available to all of its USA shoppers. "Ninety percent of Americans live within 10 miles of a Walmart store, and we serve more than 150 million customers a week, which gives us a unique opportunity to make every day a little easier for busy families". Its $9.95 fee and $30 minimum might seem steep to shoppers used to paying less for one- and two-hour Instacart and Amazon Prime Now deliveries.
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Walmart has been making efforts to update its food options as competitors like Amazon - which now owns organic grocer Whole Foods - threaten to lure away customers by offering them convenient delivery. It also allows Walmart to compete with Amazon's two-hour Prime Now service for shoppers of its loyalty program.
Customers can get free delivery on their first order, however, with the promo code FRESHCAR.
Ward disagreed that Walmart's move was related to Amazon, saying: "This is our response to honestly what our customers have been looking for". Cowen researchers saying past year that food and beverage sales online account for just 4 percent of total sales in the category, and online accounted for only 9 percent of sales for consumables like toothpaste and household goods.
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Ward declined to directly address rival delivery services.
Shipt started delivering groceries from Publix Super Markets in 2015. "Using our size and scale, we're bringing the best of Walmart to customers across the country", Foran added. The company said no subscription is required. The decision will also create damaging competition to Kroger (NYSE: KR) and other companies which focus nearly exclusively on the grocery business. Walmart says products ordered through the service, which include its full grocery assortment, will be the same price as in the store. Each week, almost 270 million customers and members visit our more than 11,700 stores under 59 banners in 28 countries and eCommerce websites. AmazonFresh costs $14.99 a month and is available only to Amazon Prime customers, who pay an additional $99 annually.
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