Walmart Plans to Update its Grocery Business


Walmart plans to update its grocery business by expanding the home-delivery service to more than 100 metro areas this year. The Online Grocery Delivery service available today in six markets will extend to roughly 800 stores across the country.

Walmart announced on Wednesday, the expansion will reach more than 40 percent of U.S. households by the end of the year. Walmart Grocery Delivery will offer fresh produce, meat, and seafood, as well as bakery items, along with pantry staples, consumables and seasonal general merchandise.

Uber Technologies Inc. and other providers will handle the home-delivery service and a shopper will pay a flat service fee of $9.95, with a $30 minimum purchase.

The move into home delivery looks like Walmart is battling with Amazon’s Prime Now service that provides free two-hour delivery.

Customers can also place orders using a Walmart Grocery app and there is no need for a subscription. In-store employees will place orders to Walmart after getting three weeks of additional training.

“We’re moving fast,” Tom Ward, Walmart’s vice president of digital operations, said in an interview. “We will be pretty aggressive with it.”

The home-delivery service was being offered in the six cities including San Jose, Phoenix, Orlando, Dallas, and Denver.

“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. Today, we’re expanding this promise by helping even more customers save time and money without leaving their homes,” Ward said.