WalmartWalmart's (WMT) latest move to extend its vast logistical reach directly to customers' homes could bring new growth opportunities to the world's largest retailer. It is launching an online grocery delivery service -- "Walmart To Go" -- that allows customers to purchase food, health-and-beauty products, medicine and other basic household goods online and have them delivered to their doors for fees starting at $5. However, a minimum order of $49 is required. Walmart competes with other major retailers like Target (TGT), Costco (COST), Amazon (AMZN) and Best Buy (BBY).

Our price estimate for Walmart stands at $74.46, roughly 35% higher than the current market price.


Will Home Delivery Take Hold?


Walmart is testing the home grocery delivery service in San Jose, Calif. We believe with increasing modernization and Internet penetration, it is likely that customers will be more aware about prices, and at the same time, display a shifting preference toward spending less time running errands. There are a large number of customers who dislike spending weekends on grocery shopping.

The home delivery alternative could tap pent-up demand among such customers. According to survey results from Booz & Co. and the Grocery Manufacturers Association, about 62% of shoppers research online deals before heading out to shop at least 50% of the time.

At present, Walmart is facing increasing price competition from dollar chains and online retailers. Customer traffic has also weakened lately. Since 2007, Amazon has operated its Amazon Fresh grocery delivery service in Seattle. It rolled out a new service in parts of Seattle, "AmazonTote" that allows shoppers to receive select merchandise (beyond groceries) once or twice a week. Amazon is presently looking to expand its home delivery service and started recruiting for the same.

We believe Walmart's home-delivery service has the prospect of being successful on a larger scale.

See our complete analysis of Walmart


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27 Comments

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ggrace.kang

Think again about ordering for home delivery....I paid through the internet and they said that it will be deliverd between 6/18-6/21 but the product is not here. I left 3 comment about it but no one is calling me to explain why the product is missing. I want my money back and apology for untrusty business that they do...Walmart.com!

June 25 2012 at 11:48 AM Report abuse rate up rate down Reply
pedro

I still contribute wal-mart as is nobody can

June 15 2011 at 9:42 PM Report abuse rate up rate down Reply
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June 14 2011 at 10:46 AM Report abuse rate up rate down Reply
lilcon73

Great Idea!! This will help my mother too who has trouble getting out. Not enough people do grocery delivery and I always wished someone would step up and make it worth our while. We need to be able to get the same prices in the grocery store. I would not mind paying a small fee for this service. I just hope it's available to everyone and not select areas.

June 14 2011 at 9:24 AM Report abuse rate up rate down Reply
mike shaffer

Others have tried this before from supermarkets to mail order stakes its only seems to work for pizza walmart has been around for sometime this is not a new idea for them every test they ran said its not worth the effert its good for the people that are house bound and those short on time but theres just not enough of business to make it work.

June 14 2011 at 12:38 AM Report abuse rate up rate down Reply
nr2187

I like Walmart and have done so for many years...and here is one reason why: In my younger days I was Advertising Manager of a daily newspaper in Fayetteville, AR when one day a man walked up to my desk and handed me a handwritten page of items and prices on closing out a Walton's 5&10-cent store on the Fayetteville downtown square, I commented that the store seemed to be doing a great business...and asked him why he was closing it.
His reply was, "I'm Sam Walton, and am starting to open a chain of discount stores"
The rest is history...worldwide!
In the opening paragraph, I commented, "In my younger days". That was then. This is now. Fact is, in October I'll be 87. Doh!
But, I still like Walmart!
Norb

June 13 2011 at 11:11 PM Report abuse rate up rate down Reply
Pat Naber

Almost nothing could make me happier than being able to do my grocery shopping on line! I am disabled and it is really difficult for me to go anywhere--I have to have someone with me who can help with my heavy portable oxygen tank and a wheelchair. I usually have to go at someone else's convenient time. In short, grocery shopping is very difficult for me and I would love the convenience of shopping on line!.

June 13 2011 at 10:02 PM Report abuse +1 rate up rate down Reply
Jim

I have been having my groceries delivered on a weekly basis from Safeway for six years now. I will NEVER go back to shopping instore. It's quick and easy and I can get on with other things that I rather do.

June 13 2011 at 8:34 PM Report abuse +1 rate up rate down Reply
ajax

I am not going to pay $20 dollars for a tee shirt at the Mall when I can get it at WalMart for 5 bucks.
I won't pay $1.50 for a can of tomatoes at huge supermarket chain when I can get it for .75 at Walmart.
I can't afford meds at Walgreens at $25/prescription when Walmart has many generics at $4/month.

In these harder times with prices but not wages going up, I have to think of my family first and not worry about supporting Vons, Safeway, Ralphs, Kroger, Publix

June 13 2011 at 8:10 PM Report abuse -1 rate up rate down Reply
haskmojo

Generally doing this is very labor intensive. WalMart hates spending on labor, I mean look at their crappy service in the store. Anybody doing this currently is losing their rear in coss and overheadt, and the fee doesn't come close to covering the cost of the service. I'm for anything that helps erode WalMarts profits. I call THEM "the Great Satan"!

June 13 2011 at 7:34 PM Report abuse rate up rate down Reply
1 reply to haskmojo's comment
ajax

I get excellent service at Walmart and Online. Just ask for help
I must be in a minority when I say my money is hard to come bycompared to you big spenders out there.
No one is forced to work at Walmart and most seem happy for the opportunity.

I am not envious of anyone else's success especially when I benefit as well.
I love Walmart!

June 13 2011 at 8:26 PM Report abuse -1 rate up rate down Reply