Walmart in Your Home - InvestingChannel

Walmart in Your Home

Proprietary Data Insights

Financial Pros Top Grocery Delivery Searches December


Discovering The Last Mile Solution

Despite the numerous delivery services, last-mile solutions, the step to get the product to your doorstep, isn’t easy.

Most major retailers have been working on this for years, with Amazon leading the way.

It’s a lot of money to make individual deliveries to someone’s home on a regular basis.

Heck, there used to be a time before free 2-day shipping.

Amazon still thinks it can use drones to make deliveries, which has yet to materialize.

That’s what makes Walmart’s foray into inside home delivery so fascinating.

As we explain in the main story, the company is testing out a monthly service that isn’t very expensive and pays employees a healthy wage.

How they can do this and turn a profit is a big question market.

It certainly requires significant investment into tight supply chains, something difficult to come by at the moment.

We expect this to be the first of many services that aim to get closer to customers. Just don’t expect them all to actually enter your home.

Home Delivery

Walmart in Your Home

Key Takeaways

  • Walmart launched InHome direct-to-fridge delivery services
  • Test expansion has employees entering homes with cameras and coverings putting your groceries away for you and sanitizing after they leave.
  • Employees paid ~9% above Walmart $16.40 an hour minimum company wage.
  • Grocery delivery market is a $93 billion opportunity.

In the fight for your pocketbook, retailers want to get as close to you as possible.

Walmart has taken that to a whole new level.

We’re in Your Home

Walmart launched its InHome service to 3,000 customers in a trial that almost makes them a member of your family.

Employees enter your home using a smart lock wearing a camera and protective coverings. They then put groceries directly into your fridge or on the counter based on your request. All surfaces touched by the employees are sanitized before they depart.

The pilot program actually started back in 2019 in a few cities.

At a cost of $19.95 per month, the service carries no additional fees and pays Walmart employees ~9% above the company’s $16.40 hourly minimum wage.

Increasing Competition

Walmart’s new service pits it against other retailers:

  • Amazon’s (AMZN) $12.99 grocery delivery service
  • Instacart’s $9.99 free delivery for orders over $35 and lower service fees
  • DoorDash (DASH) subscription pass for $9.99. Orders require a $12 minimum and pick up from retailers such as CVS and 7-Eleven.

Retailers want as much of this potential $93 billion business as they can get their hands on.

Several months ago, Walmart launched its GoLocal service that allows customers to order from other retailers and have Walmart deliver their products.

The Bottom Line: Walmart wants to integrate themselves into customers the way Amazon has. The closer and more often they can connect with customers, the better.

As one of the top retailers in the world, this strategy is vital to the company’s future. And so far, we like what they’re working on.

Want to get content like this directly to your inbox? Then we urge you to sign up for our newsletter here