Walmart has launched another initiative to compete against Amazon, this time leveraging the one thing the retailer has that the e-commerce giant doesn’t–a breadth of physical stores. Walmart will now offer discounts for picking up online orders in its stores, starting on April 19. Pickup Discount will initially be available on about 10,000, online-only items that customers buy online and ship to any Walmart store for pick up. The retailer plans to roll out the discount to more than one million of the most popular items by the end of June.
“We’re creating price transparency to empower customers to shop smarter and choose what’s best for them,” said Marc Lore, President and CEO, Walmart U.S. in a blog post.
Lore explained it can remove the last mile delivery costs when the company leverages its fleet of trucks to deliver products directly from fulfillment centers to its 4,700 stores.
“This means, quite simply, it costs less for us to ship to stores. So, our customers should share in those savings,” he wrote.
“Last-mile delivery makes up 28% of the costs of delivery alone,” explained Sarah Engel, CMO, DynamicAction. “Walmart knows this all too well and is turning to BOPIS to reduce this costly expense with their new Pickup Discount program. Not only are they reducing the hit to their profits by minimizing their delivery costs, but Walmart is further setting themselves apart from Amazon by connecting their purchase data across all channels and utilizing their physical stores to their advantage as local distribution centers – something Amazon is not in a position to do. Furthermore, they are driving the online shopper into the physical store, where they are well positioned to drive incremental sales.”
Customers shop an item notated with “Pickup Discount” on Walmart.com and ship to their local store for…