The e-commerce
giant Amazon has recently announced that it will spend $800 million in the
current quarter to reduce delivery times for top customers. They will be able
to receive their products in only one day. This has left Walmart shares
slumping by 1.9 percent to $101.53.
In response to this Walmart
has been considering some innovations of its own. To rival with its competitor,
it has teased one-day free shipping services. On the 27th of April
2019, the retail giant tweeted “One-day free shipping...without a membership
fee. Now THAT would be groundbreaking. Stay tuned.” According to an analyst,
the firm could easily match Amazon.
The expert advanced that “one day shipping is neither
shocking nor difficult for retailers at scale”. Having previously worked in
Walmart’s strategy and operations departments, he asserted that the retailer’s
existing network of 156 distribution centers and the fact that much of the U.S.
population is concentrated in urban areas imply that there is not much
investment to introduce a one-day service.
Since early 2017, Walmart
have been keeping up with Amazon by introducing new strategies. For instance,
it has offered a free two-day shipping on orders amounting to a minimum of $35. Many other retailers have adopted this
strategy.
Walmart
might introduce free one-day delivery services
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