Walmart’s (WMT) Sam’s Club is rolling out a new one-hour delivery service to help its members meet “immediate needs” during the cost-of-living crisis.
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Sam’s Club said it had introduced an enhanced tier of its express delivery offering that will allow its members to receive items within an hour.
The enhanced tier will cost $10 for Plus members and $22 for Club members, while the traditional three hours or less delivery service will cost $5 for Plus members and $17 for Club members.
It said that since the rollout of the enhanced service on April 2, almost 65,000 express deliveries have been fulfilled. The average express order is delivered in 55 minutes.
“A significant share of these orders includes everyday essentials such as water, produce, rotisserie chicken, and paper goods, signaling members are leveraging the service for immediate needs, not just convenience add-ons,” the company said.
Competition Heats Up
Greg Pulsifer, Senior Vice President, eCommerce at Sam’s Club, added: “Members love our three hours or less Express delivery, but they told us they wanted an even faster option—so, we delivered. We continue to differentiate ourselves as a leader in club retail.”
He said its 10 fastest deliveries to date were all fulfilled in less than 12 minutes. “When members need emergency baby essentials or dinners on the fly, we’re not just delivering speed, but peace of mind and time back so they can focus on the things that matter most,” he added.
As a group, Walmart seems to be stepping up to the plate on express delivery to help consumers but also to battle intense competition from the likes of Amazon (AMZN).
Earlier this week it was reported that Walmart is testing a system where third-party sellers’ goods are stored in the storage space at the back of its stores alongside its own inventory. It is understood that a pilot program has been launched at several stores in the Dallas area.
The aim is to try and match Amazon on delivery speed, particularly same-day.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 2 Hold ratings. Its highest price target is $150. WMT stock’s consensus price target is $139.04, implying a 7.29% upside.
