Exclusive: Walmart says faster delivery is changing how people shop
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Walmart said shoppers are using 30-minute delivery both for planned shopping and more urgent "need it now" purchases. Photo: Jay L Clendenin/Getty Images
Walmart says faster delivery is changing how customers shop, with more people using 30-minute delivery for everyday needs like diapers, cold medicine and meal ingredients, the company told Axios.
Why it matters: Retailers are increasingly competing on speed — not just price — as Walmart, Amazon, Target and grocery chains battle to become consumers' go-to platform for urgent shopping.
Driving the news: Walmart says it can now reach 60% of U.S. households in 30 minutes or less. The capability is currently offered in Dallas, Houston, Chicago, St. Louis, Atlanta, Tampa and Oklahoma City, with plans to expand further.
- The company completed millions of under-30-minute deliveries across more than 19,000 ZIP codes during the first quarter, Walmart told Axios Thursday shortly after reporting earnings.
- Walmart said customers are increasingly using fast delivery for urgent purchases including diapers, ink cartridges, party supplies, dog food, allergy medicine and last-minute meal ingredients.
What they're saying: "Customers are busy," Walmart U.S. CEO Dave Guggina said in a note to associates shared exclusively with Axios, adding they want "the convenience to shop however they want, whenever they want."
- Walmart said shoppers are using 30-minute delivery both for planned shopping and more urgent "need it now" purchases.
Yes, but: Faster delivery can be expensive for retailers and consumers alike.
- More than 95% of shoppers prefer free standard delivery over paying for faster shipping, according to a recent McKinsey survey of consumer delivery preferences.
- Ultra-fast delivery tends to work best in dense urban and suburban areas, where retailers can position inventory and drivers closer to customers.
Between the lines: Walmart executives repeatedly emphasized delivery speed during Thursday's earnings call, arguing faster fulfillment is driving customer engagement and more frequent shopping.
- CFO John David Rainey said "speed fuels frequency," helping drive growth in memberships, marketplace sales and advertising.
- Walmart executives said faster delivery is becoming "an engine of operating leverage, not just a better experience for customers and members."
Zoom out: Retailers are investing heavily in faster fulfillment and delivery as shoppers increasingly expect online orders to arrive in hours — not days.
- Walmart said 95% of U.S. households can now receive delivery in three hours or less across all 50 states.
- The retailer's global e-commerce sales jumped 26% in the first quarter, while store-fulfilled delivery sales surged about 45%.
- Walmart executives said the company's vast store footprint and fulfillment network are helping it scale delivery in ways that are "difficult to replicate at scale."
Editor's note: This story has been updated with additional information.
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