Delivery Wars Update

Posted on by John W. Anderson in RVA Grocery and Delivery Wars

Amazon launched its Prime delivery service for members in 2005, but that head start is not deterring the world’s biggest retailer! This week Walmart announced its own membership service - Walmart+ - set to begin on September 15, 2020. Online shopping is becoming the norm because of the COVID-19 pandemic, and Walmart’s online sales are growing, expecting to take 6% of all online sales in the U. S. in 2020. While impressive, it pales and is a distant second when compared to Amazon’s 35%.

NBC News reported that 90% of all Americans live within 10 miles or less from a Walmart store. With each store being capable of acting as a distribution center, this is a huge advantage. Over 160,000 items will be available, including groceries. Orders of at least $35 will qualify for same day delivery and, as everyone knows, it is not hard to spend $35 at a grocery store. In the Richmond community, Walmart had the top spot for market share for the third reporting period in a row, based on a report released in June that covered the reporting period of April 1, 2019 through March 31, 2020. Walmart’s spokesperson says that the company is doing this to meet its customers’ needs.

Walmart+ will cost $98 per year, while Amazon Prime is currently $119 per year. It will be interesting to see what impact Walmart+ has on Walmart’s standing in the Richmond community’s Grocery Wars. Stay tuned!

About the Author

John W. Anderson is a commercial real estate attorney who represents Virginia businesses and individuals. He assists his clients with a variety of commercial real estate matters and transactions (lender counsel, purchases, sales, leasing, tax-deferred exchanges, and development, as well as providing counsel regarding compliance with access provisions of the Americans with Disabilities Act), tax-deferred exchanges, and general corporate and business advice, including entity formation.

Spotts Fain publications are provided as an educational service and are not meant to be and should not be construed as legal advice. Readers with particular needs on specific issues should retain the services of competent counsel.