Is Walmart's Grocery Delivery Service a Bad Idea?

Is Walmart's Grocery Delivery Service a Bad Idea?Like any number of retailers before it, Walmart (WMT) has decided to experiment with the home delivery of groceries. The "Walmart To Go" service, which is being tested in San Jose, Calif., offers "special offers" and "great savings," a pitch that sounds a great deal like Walmart's major message of "Everyday Low Prices" The products offered through the new website are similar to those available from other Internet-based home-delivery services like Fresh Direct.

Walmart obviously will roll out the service across the country if it does well financially in San Jose. The benefits of the program are clear. People who don't use Walmart for grocery shopping already, or who use it infrequently, may turn to the big box retailer more often, which would increase the chain's grocery revenue. The question is whether a delivery service will hurt other sales categories for the world's largest retailer.

One of Walmart's strongest attractions for consumers is its broad array of services. A customer who goes into the store for food may also decide to buy a pair of shoes or use its pharmacy. The option of ordering groceries online will almost certainly reduce the number of in-person visits to Walmart stores, which in turn will eliminate some of the casual purchases these people would have made.

Walmart may pick up a new category of customers with home-delivered groceries. But it risks losing one of its best ways of luring people into its stores to buy things other than groceries.


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Phil The Mechanic

Would you spend $200 one time out of pocket if you could get your groceries Free for life and also get paid to tell others about it? Well watch this video about this grocery delivery company with a plan http://FreeGroceriesAmerica.com

May 23 2011 at 8:55 PM Report abuse rate up rate down Reply
Teri

I live in San Jose and have had two Walmart ToGo deliveries, on both occasions the produce was very good quality and generally what I would have selected myself. The van is chilled so the meat and frozen items were still at the right temperature. The driver told me that the people who pick the orders are trained to shop like a customer ie. finding the longest dates and the best looking produce. My experience supports this and the prices (including delivery) are not to be beaten.

May 10 2011 at 3:00 PM Report abuse rate up rate down Reply
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April 28 2011 at 10:08 AM Report abuse rate up rate down Reply
buff1999

Wal-Mart groceries are generally pretty good in terms of quality vs. value, with the exception of one thing: produce. Their produce is generally horrible compared to mainline grocery stores. You really have to pick through and look hard to find acceptable pieces of fruit and vegetables when shopping at Wal-Mart. I can only imagine this delivery service will throw in the worst pieces of produce that smart shoppers would never choose if picking through the in-store bins. Go ahead and order your pasta, cereal, and milk cartons from Wal-Mart delivery, but AVOID ordering produce or you'll regret it.

April 27 2011 at 11:44 AM Report abuse +1 rate up rate down Reply
dryheatmyfoot

I am moving to a snowy area, and with My aptness to falling & breaking bones, I would find this a valuable tool. I think parents would use this in snowy rainy weather also, to prevent bundling little ones up, and dragging them through the elements. Especially when it is a Mother (or Father) alone with two or more little ones. Then there are Senior Citizens who do not drive anymore. Even if say, They live with a Family member, that caregiver could make better use of Their time caring for the person. All this negativity towards WalMart, when the Mom & Pop stores wouldn't stand a chance with the big grocery stores like Von's, Ralph's Albertson's, Giant Eagle, Safeway and Fry's competeing for sales. Fry's out here has recently opened a couple stores with a wine bar, valet parking etc. http://www.yelp.com/biz/frys-marketplace-phoenix-4 And Walmart has opened "Grocery Stores". http://walmartstores.com/aboutus/7606.aspx The days of going to the bakery or the butcher have been gone for awhile, and I don't think it was Walmart that started it. ;o)

April 26 2011 at 2:26 PM Report abuse rate up rate down Reply
Louise

Good idea,,with gas prices and all. People are busy..very busy..even those without jobs..busy

April 26 2011 at 1:35 PM Report abuse rate up rate down Reply
DON

Don't forget there is data to show that Walmart has lower the cost of living for everyone.

April 26 2011 at 12:59 PM Report abuse rate up rate down Reply
DON

They likely will get new cusyomers like shut-ins, and it was just a matter of time for groceries on the internet as you can buy almost anything else.

April 26 2011 at 12:50 PM Report abuse rate up rate down Reply
carpro33

I HATE Walmart. The company consumes everything unlucky enough to be in its path. They sell INferior goods to a stupid, un-informed public, the stores look like trash. UGH! The motto "you get what you pay for" has never been truer. Almost all their offerings are imported from CHINA . UGH again.

April 26 2011 at 11:25 AM Report abuse +1 rate up rate down Reply