Walmart has announced new plans to expand the scope of its operations, this time launching a service that will see it delivery products for other retailers.
The ‘GoLocal’ service will see Walmart commercialise its existing delivery operations, with the retail giant set to use contract workers, autonomous vehicles, and drones to deliver third-party products direct to customers’ homes. Walmart said the service will cover “a range of assortment, including those with size and complex requirements, as well as the flexibility to meet varying timelines. The business will also rapidly expand to offer additional innovative offerings.”
Fees for the service will be negotiated on a case-by-case basis, with delivery times ranging from as little as a few hours or up to two days. Walmart said it has already signed several agreements with national and small business clients, although it did not specify any names. It also declined to reveal how much it plans to invest on the service, or its financial targets for the same.
The service is set to begin operations within a few months.
John Furner, President and CEO of Walmart U.S., noted: “In an era where customers have come to expect speed and reliability, it’s more important than ever for businesses to work with a service provider that understands a merchant’s needs. Walmart has spent years building and scaling commerce capabilities that support our network of more than 4,700 stores and we look forward to helping other businesses have access to the same reliable, quality and low-cost services.”
Tom Ward, Senior VP – Last Mile at Walmart U.S., added: “Be it delivering goods from a local bakery to auto supplies from a national retailer, we’ve designed Walmart GoLocal to be customizable for merchants of all sizes and categories so they can focus on doing what they do best, leaving delivery speed and efficiency to us.”
NAM Implications:
- Key for profitable home delivery is blanket coverage.
- (don’t we all envy Amazon’s ability to make 2+ deliveries on every stop)
- So carrying on behalf of other retailers is a no-brainer.
- The details are irrelevant except to Walmart and its partners.
- Best for suppliers to factor this Walmart-endorsed delivery service into their trade strategies.
