Walmart expands home delivery in fight with Amazon

Online revenue growth slowed at Walmart in the most recent quarter, causing some analysts to question its strategy to compete with Amazon. (Reuters)
Updated 14 March 2018
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Walmart expands home delivery in fight with Amazon

NEW YORK: Walmart will expand its grocery home delivery services to more than 100 metro areas this year from an existing six cities as the retailer steps up a fight against rival Amazon.com.
Walmart said on Wednesday the service would be rolled out to more than 40 percent of US households by the end of the year. Deliveries will cost $9.95 with a minimum $30 order and companies like Uber Technologies will provide transport. Other delivery companies will be added later this year.
“We will be pretty aggressive with it,” said Tom Ward, vice president of digital operations on a call with reporters.
The move will complement Walmart’s rollout of curbside grocery pickup, which is currently available in 1,200 stores and will be added to a 1,000 more stores this year. It also allows Walmart to compete with Amazon’s two-hour Prime Now service for shoppers of its loyalty program.
The expanded service allows the Bentonville, Arkansas based retailer to get its store shoppers to transact with the company online, where they spend twice as much. It also comes at a time of intense competition within the grocery space and follows Amazon’s purchase of Whole Foods last year. Amazon has also expanded food delivery options from Whole Foods in six metro areas over the past month. Walmart’s other brick-and-mortar rivals like Kroger and Target have invested in similar services.
Online revenue growth slowed at Walmart in the most recent quarter, causing some analysts to question its strategy to compete with Amazon. Company officials said Walmart was still on track to increase its e-commerce sales by 40 percent this year.


MSCI considers lifting China weighting in benchmark index

Updated 18 min 57 sec ago
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MSCI considers lifting China weighting in benchmark index

  • The proposal signals MSCI may increase China’s profile in such indices at a faster-than-expected pace
  • MSCI cited the ‘successful implementation’ of Chinese shares into its indices as a factor in considering a greater weighting

SHANGHAI: Global equities index compiler MSCI has said it is considering quadrupling the weighting of Chinese large-cap shares in its benchmark Emerging Markets Index over the next two years as well as adding mid-caps and companies listed on the tech-heavy ChiNext board.
The proposal signals MSCI may increase China’s profile in such indices at a faster-than-expected pace despite Chinese markets being among the world’s worst-performing this year.
For the first time, US-based MSCI added more than 200 Chinese big-cap companies to its Emerging Markets Index earlier this year.
Following a second round of additions in August, five percent of the market capitalization of Chinese big-cap firms is now reflected in the index.
But MSCI said in a statement on Tuesday that it was looking at raising that to 20 percent.
The move would take place by August 2020 and is contingent on receiving investor feedback before a final decision is made next year.
The increase would include, for the first time, more than a dozen companies from the ChiNext board, a NASDAQ-style board at the Shenzhen Stock Exchange in southern China.
MSCI may go further in 2020 by introducing mid-cap shares.
If all the changes are made, Chinese yuan-dominated shares would make up 3.36 percent of MSCI’s Emerging Markets index, up from the current 0.71 percent.
MSCI cited the “successful implementation” of Chinese shares into its indices as a factor in considering a greater weighting.
MSCI’s Emerging Markets Index and other indices are used by institutional investors to determine which shares around the world to add to their portfolios, and inclusion is expected to eventually lead to billions of dollars of new foreign investment in Chinese shares.
China’s benchmark Shanghai stock index, however, has tumbled around 15 percent this year amid factors including the Sino-US trade war.
The MSCI announcement buoyed shares on Wednesday, with the Shanghai index rising more than one percent.