By leveraging its fleet of trucks to deliver products directly to its stores, Walmart is already garnering success for minimizing last mile delivery costs, while passing on the savings to its consumers.
In fact, utilizing the “Click and Collect” model has helped the retailer set itself apart from others, thanks to its physical stores serving as distribution centers — customers walk up to intelligent parcel lockers, scan a bar code sent to their smart phones and retrieve packages.
But Walmart also acknowledges that there are several consumers who want their online orders delivered directly to their homes. So, it picked one of its top markets because of the density of the area along with the proximity of its fulfillment centers, as a perfect place to test high-impact innovation, according to Nate Faust, senior vice president of Walmart’s e-commerce supply chain.
The retailer acquired Parcel, a same-day delivery service specializing in perishable and non-perishable deliveries to customers in New York City. It makes same-day deliveries in scheduled two-hour windows around the clock, seven days a week.
“Delivery is increasingly one of the most important elements for today’s online shoppers, as demand for speed, flexibility and reliability continue to grow,” Faust said in the company’s blog post. “And while customers are looking for low prices, we also know they want convenient experiences that make shopping easier.”
Currently, Walmart offers free two-day shipping, free online grocery pickup service, and a discount pickup program that involves its pickup towers.