Walmart has announced the creation of a new line of business, called Walmart GoLocal. The service will extend Walmart’s expertise in delivering goods to customers to businesses of all sizes. Walmart says its GoLocal is built on the retailer’s proven ability to execute delivery capabilities at scale with efficiency.
In just three years, Walmart launched and scaled delivery and Express delivery for its customers on 160,000+ items from more than 3,000 stores. The service reaches nearly 70% of the US population and growing. It uses its existing delivery network, including drones, autonomous vehicles and market fulfilment centres.
Speed and reliability
According to John Furner, president and CEO, Walmart US, “Customers have come to expect speed and reliability. It is more important than ever for businesses to work with a service provider that understands a merchant’s needs.
“Walmart has spent years building and scaling commerce capabilities that support our network of more than 4,700 stores. We look forward to helping other businesses have access to the same reliable, quality and low-cost services.”
This white-label delivery as a service enables businesses to grow using Walmart’s delivery capabilities and nationwide coverage at competitive pricing. This includes delivery on a range of assortment, including those with size and complex requirements. As well as the flexibility to meet varying timelines. The business will also rapidly expand to offer additional innovative offerings.
Last mile delivery programme
“We’ve worked hard to develop a reliable last mile delivery programme for our customers,” said Tom Ward, senior vice president, last mile, Walmart US. “Now, we’re pleased to be able to use these capabilities to serve another set of customers, local merchants. It could entail delivering goods from a local bakery to auto supplies from a national retailer. We have designed Walmart GoLocal to be customisable for merchants of all sizes and categories. Brands can just focus on doing what they do best, leaving delivery speed and efficiency to us.”
Walmart GoLocal has already established a number of contractual agreements with national and enterprise retail clients. This business is an important part of the company’s overall strategy, which includes diversifying its revenue streams and profit pools. This includes initiatives such as Walmart Connect and Walmart Fulfilment Services. Its launch comes weeks after the retailer announced plans to begin offering technologies and capabilities to help other businesses navigate their own digital transformation.
Each week, approximately 220 million customers and members visit approximately 10,500 stores and clubs in 24 countries and eCommerce websites.
Enterprise Times: What this means for business?
Before Amazon, there was Walmart. It’s surprising that it’s taken Walmart this long to start flexing its retail and logistical muscle and challenge Amazon. Walmart is the world’s largest company by revenue, with US$548.743 billion, according to the Fortune Global 500 list in 2020. The company was the largest grocery retailer in the US in 2019. By 1988, it was the most profitable retailer in the US. It had become the largest in terms of revenue by October 1989.
The retailer is finally commercialising its delivery platform. It will begin with delivery as a service offering. This will help businesses of all sizes bring their products closer to their customers’ doorsteps. Walmart GoLocal is poised to be a top white-label delivery service provider. The company has ambitions and a strategy to build alternative revenue streams and move away from its traditional click-and-mortar roots. Moreover, Walmart is a brand that consumers trust in the US. The company should prove a worthwhile retail adversary to Amazon.