Walmart makes major grocery delivery move
Walmart is moving to quickly scale up its grocery delivery operation by partnering with Postmates.
The agreement will help expand the retailer’s popular Online Grocery Delivery option to more than 40% of U.S. households. Postmates will help power Walmart’s Online Grocery Delivery starting in Charlotte, N.C., with further expansion planned in the coming months.
“Customers are busy, they are managing jobs, soccer practice, dance lessons and social schedules; so we are on a mission to do more than keep a little extra money in their pockets,” said Mark Ibbotson, executive vice president, Central Operations, Walmart U.S. “With the help of Postmates, we’re making grocery shopping even easier by bringing the everyday low prices of Walmart right to the front door of customers in Charlotte with more areas to be added soon.”
The addition of a new delivery partner is not unexpected from Walmart. The company recently detailed its plans to expand its grocery delivery business across the U.S. in 2018, going from just 6 metros to 100 during that time. To date, Walmart has been working with partners instead of rolling out its own delivery service.
"As customer expectations rise, last-mile service continues to be a key focus for retailers," said Sylvain Perrier, president and CEO of Mercatus, a leading provider in digital solutions for grocery. "Mercatus believes in giving grocery retail customers the benefits of premier delivery services without the burden of building their own fulfillment offerings. Our recent partnership announcement with Shipt is one example. We look forward to adding other last mile delivery providers to our network of partners, and in the process, enable retailers to provide the best possible shopping experience for their customers."
With the help of Walmart’s personal shoppers and Postmates’s delivery network, thousands of Charlotte customers will be able to shop for and have fresh groceries delivered to their doorsteps. Personal shoppers must complete a three-week training program learning how to select the freshest produce and the best cuts of meat for Online Grocery customers.
Walmart Grocery Delivery brings customers the convenience of shopping when and where they want for quality, fresh produce, meat, seafood and bakery items, along with pantry staples, consumables and seasonal general merchandise. To use delivery, customers in Charlotte place their orders online at Walmart.com/grocery or on the existing Walmart Grocery App, switch to the Delivery tab, and select a delivery window at checkout. After orders have been picked by Walmart’s personal shoppers, a member of the Postmates Fleet retrieves the order from a Walmart store and delivers it right to the customer during their specified delivery window.
Groceries can be delivered to customers as soon as the same day. Walmart’s Online Grocery Delivery carries a simple $9.95 fee and a $30 minimum order - no subscription, no price markups. Customers can get their first order delivered for free with promo code FRESHCAR with a $50 minimum order.
The retailer also offers an Online Grocery Pickup service that allows customers to order their groceries online and pick them up in stores without ever getting out of their cars. The service, which has become a customer favorite and touted as a “Grocery Hero” for moms on the go and time-strapped families, is now available in 1,200 stores, nearly 20 in Charlotte, with 1,000 more to be added this year.
Walmart operates more than 11,700 stores under 65 banners in 28 countries.