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SHOPPERS are loving a premium service offered by Walmart that gets their goods to them quicker.
Company CFO John David Rainey revealed that same day delivery is a winning policy for the retailer.
Walmart is not just about value, but convenience[/caption]
Walmart same-day delivery is not yet available at all stores[/caption]
Speaking to Yahoo! Finance after winning its Company of the Year, Rainey said customers were willing to pay for expedited delivery.
“What we’re seeing is that a fully 30% of customer orders from one of our stores, someone is willing to pay … to have expedited delivery within an hour or within three hours.”
The convenience of receiving online purchases the same day is an added attraction for consumers and is contributing to Walmart’s increased profits.
“I even think we’re somewhat insulated because when the economy gets more challenging for consumers, they come to us for value,” said Rainey during the interview.
“We’re the company that provides everyday low prices. But what’s different now, we’re also known for convenience. So I think we’re a company that wins in any type of economic environment,” he added.
DELIVERY DEALS
Walmart promises to deliver items in “two hours or less” when a customer opts for express delivery, according to its website.
The service is available not just for food, but for electronic goods, gifts and pet supplies, so is ideal for last-minute buys.
It’s not available at all locations though, so shoppers need to check availability before placing their orders.
And of course, it does attract a cost – it’s currently $10 for expedited delivery within two hours.
While customers who are members of the company’s loyalty program receive free standard delivery on some purchases (there are exceptions), there are no free passes with the express delivery option.
Shoppers who sign up to Walmart+ enjoy free next day, two day and standard shipping in store and online for $12.95 per month or $98 per year.
Even so, it’s an area of focus for the company, which delivered “over 4 billion items in the last year [on the] same day or next day,” according to Rainey.
CUSTOMER BASE
Walmart is well-known for its low prices.
“We do have a culture of what we call everyday low cost. And we do that to provide everyday low prices to our customers,” said the Walmart CFO.
Higher income households however are now shopping at the store more.
“We’re being recognized right now as being more convenient for customers.
How to sign up to Walmart+
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Here’s how to sign up to Walmart+:
- Head to the Walmart website.
- Select ‘Account’ and then ‘Walmart+’.
- Click ‘Start free 30-day trial’.
- Enter your information.
- Enjoy the trial and benefits.
Remember to cancel before the 30 days are up, or pay $12.95 per month (which you can cancel at any time) or $98 for the annual plan if you want to keep it.
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“That appeals to all households irrespective of what your paycheck is or how much money you’re bringing in each month,” explains Rainey.
“And convenience really matters. Everybody wants to have that immediacy when they order something. And we’ve just gotten much better there.”
Walmart CEO Doug McMillon also spoke after winning the award to Yahoo! Finance and said he aims to keep prices low during 2025.
However as reported in The U.S. Sun he is “disappointed” by inflation rates and while he expects prices in some areas to level out, others will stay the same.
The brand hopes to increase membership of its loyalty program to counter the pressures of inflation.
