Walmart shares rise; retailer announces home delivery expansion


Walmart's expansion of its same-day, online grocery to serve more than 100 cities across the the end of the year is an attempt to capture the magic of the e-commerce giant Amazon, according to Walmart's former CEO.

By the end of the year, Walmart says its online grocery delivery service will reach more than 40 percent of USA householders.

Costco is exploring ways to deliver fresh groceries to consumers in Canada after finding early success with its new online food delivery services in the U.S.

"We're going to gain customers who might not have access to a brick-and-mortar store", Ward said.

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Shoppers using the delivery service will be able to make their purchases on the grocery section of Walmart's website or through the Walmart Grocery app.

"We're moving fast", Tom Ward, Walmart's vice president of digital operations, said in an interview. The Seattle-based giant has become a formidable rival for traditional grocery operations since its purchase past year of Austin, TX-based Whole Foods Marketplace for $13.7 billion.

Further, Walmart's grocery pickup services have been highly appreciated by customers, giving them the flexibility to order products on the go.

In another attempt to keep up the fight against Amazon, Walmart is expanding its grocery delivery service.

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Walmart charges $9.95 per order for delivery, and has a $30 minimum spend requirement.

Walmart also offers its BOPIS service for groceries - with an added feature that enables guests to stay in their vehicles.

Tampas Walmart delivery began as a soft launch about a year ago in five stores. The move comes as rivals Amazon, Kroger and Target are all investing in the increasingly popular service.

"There is no subscription required, as is the case for Amazon Fresh and a handful of other, more costly options on the market", write Lauren Thomas and Lauren Hirsch for CNBC.

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Walmart has tested grocery deliveries with partners like Uber and Deliv in multiple markets. It said it would expand that service to every Whole Foods by the end of the year, and it has already reached some neighborhoods in San Francisco and Atlanta. The same-day service is now available at more than 70 locations.