Walmart fights back against Amazon with one-day shipping in some US markets

Walmart’s one-day shipping marks the latest salvo in a fight between two retailers that have consistently tried to outdo each other. (Reuters)
Updated 14 May 2019
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Walmart fights back against Amazon with one-day shipping in some US markets

  • The Walmart deal will be available to online shoppers in Phoenix and Las Vegas and then expand to Southern California in the coming days
  • The service will be rolled out gradually, with a plan to reach approximately 75 percent of the US population this year

WASHINGTON: Walmart is stepping up its battle with Amazon.com by offering one-day delivery without a shipping fee, weeks after Amazon announced a similar offer — a move that will intensify the race to deliver orders to shoppers faster.
On April 25, Amazon said it plans to deliver packages to members of its loyalty club Prime in just one day and expects to spend $800 million toward the shipping goal in the second quarter alone.
Walmart’s offer applies to fewer products. As many as 220,000 items, which are the most frequently purchased, ranging from laundry detergent to toys and electronics will qualify for one-day shipping. The orders have to be worth at least $35 to qualify.
The Walmart deal will be available to online shoppers in Phoenix and Las Vegas and then expand to Southern California in the coming days, the head of its US ecommerce service, Marc Lore, told Reuters in an interview.
The service will be rolled out gradually, with a plan to reach approximately 75 percent of the US population this year, which includes 40 of the top 50 US metro areas, Lore said.
One-day shipping marks the latest salvo in a fight between two retailers that have consistently tried to outdo each other in everything from online order delivery to grabbing a bigger share of the online grocery market. Walmart started offering same-day pickup in its stores in 2011 and caught up with Amazon’s two-day free shipping two years ago by offering it without a membership fee. It has made progress in closing the gap with its e-commerce rival by rolling out services such as curbside grocery pickup and same-day grocery delivery — options that have quickly become popular with shoppers.
Amazon, on the other hand, has hastened to reproduce the assets of brick-and-mortar rivals such as Walmart and has a mixed record with those projects. It is now racing to open shops with top-selling items ranging from books to cell phones; rolling out same-day curbside grocery pickup and gearing up to accept returns at all US Kohls Corp. department stores.
“We have been working on this since I have gotten here ... we have been building out the infrastructure for the last few years to support this,” said Lore, who joined the retailer in 2016 when it acquired his company, Jet.com.
The vast majority of the order volume for such a service comes from the “first couple of hundred thousand” products, he said.
The move will cost Walmart less as orders will be delivered from warehouses closer to the customer and arrive in a single box instead of multiple packages, Lore said.
“It is counter-intuitive... but the way we have structured our network, we will see improved profitability as a result of lower shipping cost,” he said.
Walmart sends out boxes from multiple warehouses around the country under its two-day shipping program, but with one-day shipping, it is stocking inventory in the closest single warehouse to the shopper, Lore said.


Oil rises on US-Iran tensions, but trade war concerns weigh

Updated 28 min 24 sec ago
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Oil rises on US-Iran tensions, but trade war concerns weigh

  • There are expectations producer club OPEC will continue to withhold supply this year
  • President Donald Trump on Monday threatened Iran with ‘great force’ if it attacked US interests in the Middle East

SINGAPORE: Oil prices rose on Tuesday on escalating US-Iran tensions and amid expectations that producer club OPEC will continue to withhold supply this year.
But gains were checked by concerns that a prolonged trade war between Washington and Beijing could lead to a global economic slowdown.
Brent crude futures, the international benchmark for oil prices, were at $72.24 per barrel at 0534 GMT, up 27 cents, or 0.4 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were up 26 cents, or 0.4 percent, at $63.36 per barrel.
“Escalating tensions between the US and Iran, in addition to signs that OPEC will continue its production cut, drove oil higher,” said Jasper Lawler, head of research at futures brokerage London Capital Group.
US President Donald Trump on Monday threatened Iran with “great force” if it attacked US interests in the Middle East. This came after a rocket attack in Iraq’s capital Baghdad, which Washington suspects to have been organized by militia with ties to Iran.
Iran said on Tuesday that it would resist US pressure, declining further talks under current circumstances.
The tension comes amid an already tight market as the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers have been withholding supply since the start of the year to prop up prices.
A meeting has been scheduled for June 25-26 to discuss the policy, but the group is now considering moving the event to July 3-4, according to OPEC sources on Monday, with its de-facto leader Saudi Arabia signaling a willingness to continue withholding output.
Price gains were constrained by pressure on financial markets, which have this week been weighed down by worries that the United States and China are digging in for a long, costly trade war that could result in a broad global slowdown.
Singapore, seen as a bellwether for the health of the global economy, on Tuesday posted its lowest quarterly growth in nearly a decade of 1.2 percent year-on-year. Growth in Thailand, a key Asian emerging market, also slowed to a multi-year low.