Walmart delivers for other merchants

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Wal-Mart Company Update

Walmart plans to share its delivery network with other retailers in a new business that will open another Competitive frontier Between the world’s largest large chain store and online retailer Amazon.

The third-party logistics service called Walmart GoLocal is scheduled to launch on Tuesday. Walmart Call it a “white label” delivery service provider for local and national retailers such as bakeries and auto parts stores.

Tom Ward, senior vice president of Wal-Mart’s U.S. Last Mile, stated that merchants who sign up for GoLocal will use Wal-Mart’s delivery platform to complete orders placed through their own website. Walmart GoLocal will pick up merchandise from the retailer’s facilities for delivery.

This move comes at a time when traditional retailers are seeking new sources of income. More and more consumers are ordering goods online and expect fast home delivery.

It will also intensify competition with Amazon, which Fulfillment service Ship goods ordered from other websites. In May of this year, Amazon invited sellers to join a waiting list for a pilot program that packaged their orders in unbranded boxes. Amazon and Wal-Mart warehouses also store third-party products sold through their respective websites.

Wal-Mart said that merchants using GoLocal will be able to put their brands in a leading position in the eyes of customers. Delivery vehicles managed by Wal-Mart may be decorated with merchant logos.

Ward said the service will be “customizable for merchants of all sizes and categories, so they can focus on doing what they do best, leaving us with delivery speed and efficiency.”

In July, Walmart announced a partnership to combine its marketing, fulfillment, and delivery technologies with the Adobe Commerce platform as part of the retailer’s broader effort to sell its technology to other businesses.

Jefferies analyst Stephanie Wissink said in a recent report that Wal-Mart’s moves, from expanding its online market to its new delivery options, should promote “sustained and strong e-commerce growth”, thereby gaining a larger share of customer spending. .

Walmart America E-commerce sales According to the company’s second-quarter results, sales more than doubled in the past two years. Earlier this year, Wal-Mart stated that it aims to make a $14 billion capital investment in fiscal year 2022, some of which will be used for supply chain and automation improvements. The company predicts that global e-commerce sales will reach 100 billion U.S. dollars in the next few years.

Walmart CEO Doug McMillon said on the earnings call last week: “We are trying to establish a model in which we are completely indifferent, whether it is the top line or the bottom line, because This has to do with the way people shop.”

exist Opponent’s goalWith employees packing online orders in the company’s store, same-day delivery sales through Shipt services increased by 20% in the second quarter, compared with an increase of more than 60% in the same period last year.

Target says that more than half of digital sales customers choose some form of same-day fulfillment, which reflects the surge in demand for curbside pickup Coronavirus pandemic.

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