Walmart expands key offer Target and Amazon don't match
The retail giant has invested heavily in an area that Amazon and Target have ignored.
Walmart, Target, and Amazon sometimes seem like heavyweight boxers just throwing big punches at each other. Money, of course, solves a lot of problems, and the battle to deliver more items faster has cost billions of dollars.
All three retailers have made two-day delivery the bare minimum with same-day delivery offered on many items. Plus, Walmart and Target have been building out curbside pickup. It's a battle that has been very good for consumers: They keep getting faster service without actually paying more.
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The challenge for Walmart, Target, and Amazon has become offering any sort of differentiated service. Amazon (AMZN) has the broadest selection — that's an advantage it's unlikely to lose — but Walmart (WMT) and Target (TGT) have a broad enough selection that it's hard to see that as a major advantage.
Walmart, however, has rolled out an improved service that brings added convenience to consumers. Image source: Walmart
Walmart expands in-home delivery
Same-day grocery delivery is convenient, but if you end up not being home when your groceries are delivered, it can lead to disasters. Nobody wants their perishable items sitting outside for any length of time and unattended shopping bags that are just sitting there are attractive to thieves.
That's why Walmart has a service that will literally bring your order into your home and put perishable items in the refrigerator or freezer.
"The company’s InHome service is designed to be the ultimate time saver for customers by delivering everyday essentials, general merchandise, and fresh groceries directly into their homes. Walmart is the only retailer offering delivery straight into customers’ kitchens or homes," the company shared on its website.
InHome is an add-on to a Walmart+ membership. The company has recently expanded the availability of the service offering it to 45 million households across 50 markets nationwide.
"These markets include major metropolitan areas such as Boston, Detroit, and Philadelphia," the company added.
Amazon has a program that will bring groceries into your garage, but not actually into your home.
Walmart improves InHome service
Walmart has been working on improving InHome by helping customers place orders before they even know what they need. This prevents them from running out of key household essentials.
"In January, Walmart revealed it was enhancing the InHome service with replenishment. Replenishment, powered by AI, utilizes a personalized algorithm to predict customer needs and automatically place items into the cart with your InHome order to be delivered straight to customers' pantries and refrigerators," the company shared.
Amazon has tried various ways to accomplish the same thing including failed attempts like the buttons it sold that could reorder items with a single press. Walmart is using a more tech-forward approach.
"The algorithm learns customers' regularly-purchased items including frequency and quantity," Walmart added.
Early feedback has been positive.
"In April, replenishment began its initial testing, and customer feedback has been positive. Customers noted the service provides them with increased flexibility, time savings, and a level of precision in the items added to the cart. One customer said that replenishment has given them the reassurance that they won’t forget necessary items from their weekly shopping list," the company posted.
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InHome does cost extra on top of the $12.95 per month or $98 per year Walmart+ costs. To add InHome, members pay an extra $19.95 a month or $138 a year. That includes unlimited free store deliveries to your door, or into your garage or kitchen.
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