Walmart has announced that it is waiving grocery delivery fees nationwide for orders of USD50 or more through October 31. To apply the offer, shoppers need to use the promo code “HOMEFREE” when checking out. The initiative comes shortly after the retailer announced the expansion of its Delivery Unlimited membership to 1,400 more stores in 200 US cities this fall. Walmart typically charges USD7.95 for next-day delivery and USD9.95 for same-day delivery, with an order minimum of USD30.
Walmart has most recently focused on its pickup service, accounting for 33% of its online business and requiring less expensive infrastructure and implementation. Now it hopes that the temporary fee waiver will persuade more shoppers to try home delivery, encouraging them to migrate to its new delivery plan, which costs USD98 per year or USD12.95 per month. The service is also an answer to recent initiatives by competitors Kroger and Amazon, testing 30-minute delivery and expanding one-day Prime shipping, respectively.
With US online grocery sales set to reach USD120 billion by 2024, nearly doubling from USD63 billion in 2019, retailers will continue to focus investment in accelerated fulfillment to compete. In response, CPGs will need to better optimize their own inventory planning and supply chain capabilities to observe narrower time frames. CPG brands must also work proactively with retailers to ensure high quality content, bundling opportunities and strong ad placement, to maximize visibility and conversion.
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