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Walmart tightens grip on online grocery (WMT)
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Walmart is launching a new line of convenience stores, called Walmart Pickup and Fuel, which will offer free, same-day pickup of online grocery orders, pushing the mass merchant further into the competitive grocery e-commerce space, reports Business Insider.
The company has already opened two locations in Alabama and Colorado, but an expansion could pose a bigger threat to competitors as US consumers begin shifting online for these purchases.
Walmart Pickup and Fuel capitalizes on US shoppers finally coming around to the idea of ordering groceries online. Many online shoppers have been hesitant to buy online because they like to see and pick out their own items. But they are starting to warm to the idea — 41% of US consumers have now purchased groceries online at least once, according to Brick Meets Click. And the number of shoppers who say they have bought groceries online "in the past 30 days" doubled to 21% in 2015 from 11% in 2013. The new convenience stores, coupled with Walmart's curbside pickup program at retail locations, could help the company grow its online grocery sales and onboard new customers via flexible fulfillment.
Walmart is posing a bigger threat to competitors. In addition to Walmart Pickup and Fuel, the company recently partnered with ItemMaster to freely use its vast database of consumer packaged good (CPG) product photos and videos, reports Internet Retailer. Enhancing the customer experience to include the most up-to-date photos and product information from manufacturers via ItemMaster could threaten competitors, like Amazon, that are also moving into the grocery e-commerce space.
In addition, Walmart maintains an advantage in its physical locations and could steal market share if it continues meeting varied consumer needs with new tools and fulfillment options.
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