The post-pandemic era has seen cultural and social adjustments big and small, but the way we shop has changed particularly significantly.
Stay-at-home mandates meant delivery services boomed even more sharply than they already were, and the normalisation of home deliveries has shifted customer expectations around how quickly, cheaply, and easily they can get hold of their goods.
The biggest winner in that arena is clearly Amazon. Having already established an indomitable delivery fulfilment network that offers same-day delivery on some products and locations, and more broadly can generally fulfil orders within 24 hours, it’s become the yard stick by which all other retailers are measured.
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Now it seems that fellow US retail titan Walmart is exploring new ways to compete with Jeff Bezos’s standard-setting ecommerce business.
Per USA Today, itself citing a Bloomberg report, Walmart is trialling a brand-new format featuring warehouses resembling normal Walmart stores.
However, the locations won’t have any signage and customers won’t be able to enter them. So, what’s the game plan here?
A source, speaking to USA Today anonymously said the so-called ‘dark stores’ will be stocking the popular Walmart products ordered online, with the locations shaping up to be online delivery fulfilment centres.
With these in place, Walmart could complete orders more expeditiously and thereby compete more aggressively with Amazon’s online presence.
"We regularly test new tools, features, and capabilities to better connect with and serve our customers, wherever and however they choose to shop,” said Walmart in a statement given to USA Today.
“Regardless of the channel, our goal remains the same: to deliver a fast, seamless, and engaging customer experience.”
Speaking on an earnings call in May, CEO Douglas McMillon said: “Delivery speed continues to help drive our business. We'll soon reach 95% of the population in the U.S. with delivery options of three hours or less.”
He continued: “For Walmart U.S, the number of deliveries in less than three hours grew by 91% for Q1 versus a year ago.”
The ‘dark stores’ aren’t the first move Walmart has made to gain ground on Amazon’s ecommerce supremacy.
Back in 2020, the company launched the Walmart+ subscription service offering unlimited free deliveries from stores on orders of $35 or more, directly competing with Amazon Prime.
It’s priced at $98 per year or $12.95 a month, and it came 15 years after Amazon first launched Prime. According to eMarketer, Amazon Prime has grown to 186.3 million US customers, and that’s an increase on the 2022 figure of 171 million.
Meanwhile, Walmart+ has an estimated 34.7 million customers.
Rachael Davis