Chief Financial Officer John David Rainey shared the news during last week's earnings call.
About one-third of in-store delivery orders reach customers within three hours, with 20% arriving in just 30 minutes. "We're seeing billions of items delivered the same day, even within hours, by leveraging our store network," said John Furner, president and CEO of Walmart US.
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A Walmart delivery truck parked outside a store in Richmond, California. Photo: Walmart |
A Walmart delivery truck parked outside a store in Richmond, California. Photo: Walmart
Walmart is focusing on improving delivery speed amid fierce competition with Amazon. Rainey believes this strategy is worthwhile, as fast delivery encourages repeat customers. "When customers realize they can buy and receive items almost immediately, their shopping frequency increases, helping us maintain our market share," he said.
Doug McMillon, president and CEO of Walmart International, emphasized that technology, especially AI, will continue to enhance the delivery experience. One example is the expansion of "dynamic delivery windows" (estimated delivery times calculated flexibly for each order based on real-time conditions), which is expected to cover 95% of US households by the end of the year. This algorithm analyzes real-time data on routes and local conditions to optimize delivery routes and times.
"We have a tremendous amount of data, not just on products but also on transportation. Leveraging that data within the context of customer shopping patterns is a very exciting opportunity," McMillon said.
According to Furner, Walmart currently reaches 93% of the US with delivery times under three hours, and aims for 95% by year's end. The company is also expanding its express delivery service for third-party sellers through Walmart Fulfillment Services, with next-day delivery available in major cities like Los Angeles, New York, Chicago, Houston, and Atlanta.
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