Slashdot is powered by your submissions, so send in your scoop

 


Forgot your password?
Close
typodupeerror
×
Businesses

Walmart is Quietly Working on an Amazon Prime Competitor Called Walmart+ (vox.com) 66

Posted by msmash from the how-about-that dept.
Amazon Prime has devastated traditional retail. Walmart is about to fight back. From a report: When Amazon launched a funky membership program called Amazon Prime in 2005, Walmart boasted larger profits than Amazon had revenue. Fifteen years later, though, Prime is the key reason for Amazon's dominance over Walmart in online sales. That pressure has pushed the traditional retailer to burn tens of billions of dollars to fight back while its executives have cycled through various stages of reaction to Prime's ascent: denial, followed by meek competition, followed by a reversal that seemed to signal Walmart wanted to stick to a free, no-membership strategy. But Recode has learned that over the past 18 months, the world's largest brick-and-mortar retailer has explored creating its own paid membership program that would include perks that Amazon can't replicate, in part to avoid a direct comparison to Prime. Amazon now accounts for nearly 40 percent of all online retail sales in the US, according to eMarketer, and Prime is a huge reason why. Walmart is a distant No. 2 with only a little more than 5 percent of the US e-commerce market.

As soon as next month, Walmart plans to start publicly testing a membership program called Walmart+, according to sources. The program is expected to essentially launch as a rebrand of Walmart's existing Delivery Unlimited service, which charges customers $98 a year for unlimited, same-day delivery of fresh groceries from one of the 1,600-plus Walmart stores in the US where the program is available. The company is also considering launching Walmart+ with a feature that would allow customers to use text messaging to place orders. Sources said that the amount of the Walmart+ fee could still change or the company might test multiple price points.
This discussion has been archived. No new comments can be posted.

Walmart is Quietly Working on an Amazon Prime Competitor Called Walmart+ More

Walmart is Quietly Working on an Amazon Prime Competitor Called Walmart+

Comments Filter:

  • Where's the fun in that? (Score:3, Funny)

    by Anonymous Coward on Thursday February 27, 2020 @01:15PM (#59774294)
    Only good thing about Wal-Mart is the people watching. Online Wal-Mart? That's like ordering Hooters to go...

    • Re:Where's the fun in that? (Score:4, Insightful)

      by cayenne8 ( 626475 ) on Thursday February 27, 2020 @01:51PM (#59774446) Homepage Journal

      Only good thing about Wal-Mart is the people watching. Online Wal-Mart? That's like ordering Hooters to go...

      Yeah....and wow, ordering groceries form Wally World?

      I've been a few of their super Walmart stores that have groceries, and UGH, I"d not buy much at all from them aside from canned goods.

      Their meat was of horrible quality, and their produce section, often is bad as far as selection and freshness from all the ones I've ever stepped into.

      I try to avoid Walmart as much as possible, but the ones I've seen for food were horrible.

      With that in mind, I'd *really* never go for ordering online and having someone at the store picking out MY food, as that I can't imagine they'd by the best and freshest looking of foods, and do more in their favor and pick the stuff that needs to be rotated out of stock first.

      Aside from that, what else with WalMart+ give you for that $98?

      I mean with Amazon Prime, I not only get 2 day "free" shipping, I also get Amazon Prime Video, which has a pretty decent selection for streaming.

      I got Amazon Music which has an excellent selection of streaming music for when I"m on the go.

      There's the Amazon books thing, where they have a lot of books available for the Kindle apps, as well as monthly rotations of magazines , etc...

      And Prime offers other perks that I've not really dealt much with, but are there for you membership.

      I have a hard time believing Wally World will come close to giving as much value for $98....and as the parent said.....you'll miss out on the people watching aspect of it...which is often mind blowing.

      Just when you've thought you've seen everything just go people watch in Walmart for a bit and you'll observe amazing things people do and wear out in public.

      • Re: (Score:3)

        by Amouth ( 879122 )

        i'm in the same line of thought - this is way to little, way to late, and expensive.

        Think about who has 100$ disposable income, then think about the sub set of those that would use it for a same day groceries delivery service, then think of the subset of those who would buy their groceries from Walmart.... i see zero

        if this was Whole foods, before Amazon bought them, that i can see them getting some subscriptions - wealthy people whom are "health food" nuts, and want now now now..

        i just don't thing there i

        • Re: (Score:2)

          by Pascoea ( 968200 )

          then think of the subset of those who would buy their groceries from Walmart.... i see zero

          You'd be surprised. Obviously depends on the area you're in. The WM I frequent is in a relatively higher-end area, and there aren't a bunch of options for grocery. The one that is nearby is on-par, quality wise, with what WM sells. $100 to not have to regularly grocery shop any more? I'd consider it.

          • Re: (Score:2)

            by cusco ( 717999 )

            No way in hell, for me. We were at a friend's house when they got a delivery from one of the grocery stores (Albertsons I think). Tomatoes that were a light pink, bananas so green they were a week from being eatable, and sprouting potatoes. She said that she had learned already not to buy meat for delivery.

            I like eating good food, and my wife is an incredible cook. For good food you need good ingredients, and for that you need to be able to pick them out. Much as I may loathe shopping it's still the o

      • Re: (Score:2)

        by Pascoea ( 968200 )

        I'm not sure where you live, or how long it's been since you've looked, but the stores that I frequent have made HUGE strides in the produce and fresh foods departments. Starting just over a year ago, my market has prioritized their grocery and particularly the fresh food. Like any grocery store, you can still find bad stuff, but I don't recall the last time I was disappointed with their produce and such. (And of course you're not going to compare their meats and such to a high-end grocer or butcher. Bu

        • Re:Where's the fun in that? (Score:4, Insightful)

          by cayenne8 ( 626475 ) on Thursday February 27, 2020 @04:14PM (#59775062) Homepage Journal
          I live in the New Orleans area...food is VERY important down here.

          Aside from WM's, we have about 3-4 Local area wide grocery stores and one chain, Winn-Dixie (not a fan there either). The local grocery stores, are quite good, especially the largest of them all, Rouses.

          I've been inside WMs a few times the past year and I'd stroll over to look at the grocery area and for the most part....ICK., like I'd described.

          nd of course you're not going to compare their meats and such to a high-end grocer or butcher

          Meat was horrible, and cheap looking and last time I tried it, no flavor and tough as nails.

          There's not rally much in the way of butchers or high end meat places, a few but far between.

          The best meats I come across here, lately, is Costco...they have great choice and USDA Prime meats there for some of the best prices around I've seen, but the local grocery stores are good too.

          All of them better than WM

          As far as the grocery pickup, you're actually getting fresher stuff. They are generally picking from back-stock, the stuff they haven't put out on the shelves yet. I

          That's interesting. I've not see the "shoppers" at work in WM, but when in another state over the holidays, I did see them at Krogers...and they were definitely shopping out in the aisles like the rest of us...so I assumed WM was doing the same, but to be honest, I don't have first hand knowledge of that at the WM's here.

          I just looked on Amazon at their WF delivery options for my area, and was pleasantly surprised at the prices and offerings. I may actually try it once to see what I get.

          One thing, don't you need to tip the delivery grocery guy like you do any other delivery (pizza, etc)?

          If so, don't people take into consideration for that adding to the $$$.?

          What's the going percentage for grocery delivery?

          When dining out, I tend to overtip, but I like getting good service and in my younger days, I worked food service and bar tending....and especially in places I frequent a lot, this gets me really good service, so I like that. I start with 20% for most any food service and go up from there a good bi.

          Is it standard for 15%-20% for grocery delivery or what?

          • Rouses is not a fair comparison. It's one of the best general grocery stores in the country in terms of quality. HEB in southeast Texas is at that level and sometimes better, and I hear that Meijer in the Midwest can play, but don't know any others.

    • Go to PeopleOfWalmart [peopleofwalmart.com], all the sights, none of the sounds. Or the smell. Or having to explain to your friend seeing you walk out of Walmart what the fuck you've been doing there.

      • In my experience, only smug assholes who are worth even less than their meager earnings, will look down that nose held high up their own assholes at people who shop at Wal-Mart. Really, the Doritos and Velveeta cheese you buy at Wal-Mart is the same that you get anywhere else. I used to work for a food distributor, so I should know.

        There was at least one Wal-Mart that sourced its produce from us. The very same produce that the Subway franchisees in our service area ordered from.

    • And the only thing good about Amazon is cheap Chinese sit...

  • Choices (Score:5, Insightful)

    by nwaack ( 3482871 ) on Thursday February 27, 2020 @01:17PM (#59774304)
    I'm pretty glad to see this. Amazon Prime has had a near-monopoly for far too long. Some big competition in the space is welcomed.

    • Re:Choices (Score:4, Insightful)

      by chispito ( 1870390 ) on Thursday February 27, 2020 @01:25PM (#59774346)

      I'm pretty glad to see this. Amazon Prime has had a near-monopoly for far too long. Some big competition in the space is welcomed.

      Walmart is probably better equipped than anybody to offer a wide range of products with same-day delivery to a high percentage of the population.

      • It wouldn't be easy but if WalMart built drive-thrus to pick up online orders without parking or going into the store, I would use that. I already drive past a Walmart Superstore and two Walmart Corner Stores on the 15 minute drive home from work, I do stop at the Corner Store often but the selection is small compared to the Superstore and parking, walking in, and checking out there are too big a commitment for a couple small items.

        • My local Walmart has curbside delivery for grocery shopping so doing an online order pickup would be easy. I'll go out on a limb and say they will be doing exactly this.

          It makes sense to leverage their brick and mortar stores to eclipse Amazon's Prime delivery. They can keep product local on the shelves for retail or pull it for online orders and deliver to the curbside within an hour. It would cut to nearly zero the extra cost of same day pickup and allow Walmart to make a run at Amazon on shipping cost

        • Walmart, Kroger, and other stores with gas stations are missing a huge opportunity to load orders into your car while you refuel. That to me is where they can outdo Amazon. You have to stop for gas anyway, why not get your groceries or orders at the same time?

        • Re: (Score:2)

          by afidel ( 530433 )

          Walmart has done exactly that in some markets, they have two concepts I have seen. One is a climate controlled building that looks like this [vox-cdn.com] and then they have another one that looks kinda like a fast food drivethrough setup that looks like this [walmart.com]. In my area some stores have the first one but in traveling around the country I've seen the latter. They don't appear to be very widespread yet, but I think if they're serious about this push they'll probably expand them for folks that can't easily receive deliveri

      • Re:Choices (Score:4, Interesting)

        by StormReaver ( 59959 ) on Thursday February 27, 2020 @01:50PM (#59774440)

        Walmart is probably better equipped than anybody to offer a wide range of products with same-day delivery to a high percentage of the population.

        That would require a MASSIVE change at Walmart. In order to provide same day delivery, Walmart would have to actually have products in-store. All the Walmarts in my area carry very little compared to what's available online. And when I order online from walmart.com, it takes 1-2 WEEKS for the order to arrive. Compare to Amazon, where 2-3 day delivery is the norm.

        • Walmart is probably better equipped than anybody to offer a wide range of products with same-day delivery to a high percentage of the population.

          That would require a MASSIVE change at Walmart. In order to provide same day delivery, Walmart would have to actually have products in-store. All the Walmarts in my area carry very little compared to what's available online. And when I order online from walmart.com, it takes 1-2 WEEKS for the order to arrive. Compare to Amazon, where 2-3 day delivery is the norm.

          Yes, but.. Walmart has brick and mortar every couple of miles in most places and all they need to do is to locally stock MOST of what folks want to order within comfortable driving distance of your house. In my case, there are at least 4 stores that are easy for me to get to in about 10 min and if I was desperate enough to drive 20 min there would be nearly 100.

          So, if they usually have what you want, locally, and can deliver it TODAY while Amazon is offering it at the same price but before 10PM tomorrow

          • Re: (Score:2)

            by gmack ( 197796 )

            Walmart would have to have a massive cultural shift to make this happen, They just don't understand delivery or customer service, The last time I ordered from Walmart online, The dishwasher said free delivery but what they really did was drop it in the mail and of course heavy items have to be picked up from the post office. When I contacted them, they couldn't understand why it bothered me and in the end resorted to just ignoring any further messages from me. Next time I pay the extra $50 to order it

            • A dishwasher? Online? Wow.. Of all the things I'd not do, buying appliances online would be among them.

              However, it's likely that Walmart just was the website you used, that you actually purchased from somebody else THROUGH Walmart. I'm sure Walmart doesn't have all that much control over how their sellers ship stuff like a dishwasher, just like Amazon would not have much control in a similar circumstance. I suppose Amazon may have better customer service and the ability to force the seller's attention

              • Re: (Score:2)

                by afidel ( 530433 )

                I bought my stove for the house online like 15 years ago, went and saw it at a local big-box store and then bought it through a wholesaler online for literally about half even after paying for lift-gate delivery service.

          • Walmart is uniquely positioned to take on Amazon.

            Walmart should be uniquely positioned, but their management is incompetent. Everytime I go into a Walmart, can't find what I'm looking for, and ask a clerk why they have less and less in stock, the answer is always the same: Walmart's objective is to get people to buy through walmart.com.

            It seems like Walmart's long term plan isn't to use their brick and mortar stores as delivery warehouses, but to reduce their physical presence. I don't know if that's their actual objective, but they sure make it seem th

      • Nope, it's the exact opposite. Their logistics are optimized for traditional distribution to retail stores, not e-commerce small order to consumer.

        The picking, packing and shipping processes are completely opposite of what Walmart built out and is the reason they are frantically building e-commerce style fulfillment centers to try to compete with Amazon (they are way way behind).

        You can't just start processing small consumer orders using their old system because their costs would end up 100x what it c

    • Amazon isn't always the cheapest either. Plus they charge sales tax now so what's the attraction?

      • so what's the attraction?

        1. The selection. Amazon has literally millions of products. Way more than Walmart.

        2. The reviews. Many reviews are fake, but any defective product is going to be outed.

        3. Prime Video. Basically, you get Netflix for free as a bonus.

      • Amazon isn't always the cheapest either. Plus they charge sales tax now so what's the attraction?

        I have *rarely* found Amazon to be the cheapest solution product to product. I actually find that Amazon is more expensive than even local options, especially if you consider what PRIME costs. Amazon does have cheaper options at times, but usually the product is the way cheap one, available on E-Bay for less if you don't mind waiting for a week. I do use Amazon for budgetary pricing, and they generally set the "online" price, but rarely are they the cheapest.

        If you think about it, this makes sense. Amazo

  • Too late (Score:5, Insightful)

    by TheRealMindChild ( 743925 ) on Thursday February 27, 2020 @01:22PM (#59774326) Homepage Journal
    It's too late. Walmart fumbled and now going to lose the game. With elimination of price matching (even with themselves), savings catcher, reduction is variety on the shelves, and raised their prices to not be the cheapest anymore, there is no reason to shop there at all. And everyone has figured that out

    • There are still two reasons to shop at Walmart:

      1) Groceries
      2) TV's

      Walmart has all but killed any other reason.

      • Re: (Score:1, Informative)

        by i.r.id10t ( 595143 )

        Rimfire ammo. Prices on the shelf are about what I can order online for, but sales tax (6.5%) is less than what shipping would be unless I were to order a case at a time (free shipping then, but I can't afford to drop $200-350 at a time, $25 or so every paycheck is more than enough)

        Used to include 9mm ammo and 5.56 and 762x39 in that list, but they stopped carrying those calibers for some stupid reason.

        Would say the same for shotgun ammo even, but the last time they changed brands/packaging I picked up a f

  • This might cause an endless loop, if people using Amazon to resell stuff they buy on WalMart .

  • Logistics is the biggest problem. Pure speculation, but I think it may cost Amazon like $5 per delivery and that's given a high volume. Anyone did Amazon or Doordash delivery? How long does it take, on average per delivery?

  • The company is also considering launching Walmart+ with a feature that would allow customers to use text messaging to place orders.

    The fun pranks that can be had with this feature...

  • One store to rule them all (Score:3)

    by Ukab the Great ( 87152 ) on Thursday February 27, 2020 @01:54PM (#59774466)

    Amazon vs Walmart. It has kind of a Sauron vs Saruman we-lose-no-matter-who-wins ring to it.

  • I'll stay with uTorrent Flix Prime Plus.

  • Walmart+ (Score:3)

    by neo-mkrey ( 948389 ) on Thursday February 27, 2020 @02:16PM (#59774572)
    Just what we need ... another streaming service.

    wait..what?
  • either Walmart is taking a loss (which will get them an anti-trust probe) or they're using gig economy workers to shift the cost onto desperate people like Instacart does (e.g. $2/hr wages after accounting for vehicle maintenance).

    Walmart would be especially bad, because they could use the threat of cutting hours to make their regular employees do the "gig" work at a loss. It would be easy to set that up without them getting their hands dirty too. They just need to give store managers a bonus for the nu
  • Both the website, and in the store. Ya can't get that kind of entertainment...without being there in person LOL
  • Walmart wrecks retail as it takes over the country, and now Amazon Prime wrecks Walmart. They shouldn't have been asleep at the wheel for so long if they didn't want to be in this boat.

    • Re: (Score:3)

      by afidel ( 530433 )

      Not sure that Amazon has wrecked Walmart yet, for 2019 Walmart had sales of $514B vs $141B for Amazon's store sales.

  • Peter Drucker has a famous list of questions that businesses should ask themselves. First and foremost: "What business are you in?" And the follow-up: "What business should you be in?" Wal-Mart looked at their competitor's operation, they evaluated Amazon's various initiatives (including Amazon Prime), and came away with two things: 1) A delivery service, and 2) An annual subscription fee. As someone upthread stated, Prime is sooooo much more than that. Objectively it really is an amazing value for wha

  • Not remotely as good as Prime (Score:4, Interesting)

    by LightStruk ( 228264 ) on Thursday February 27, 2020 @03:03PM (#59774784)

    Prime isn't just fast delivery from Amazon. Of the many perks it also includes, I personally use Prime Music, Prime Instant Video, and the free borrowed book on Kindle a month. I would pay $119/yr just for the streaming content alone - it's cheaper than Netflix or HBO Now. The fast free shipping is a nice bonus.

    Compare that to Walmart's "potential future" perks - discounts on prescription drugs at their pharmacy, discounts on gas at their gas pump, and ordering by text message? Why on earth would I ever want to order items by text message? Have they heard of smartphones, that amazing invention from 2007? Ordering by text is the worst possible interface for ecommerce that might potentially maybe make sense on a Blackberry or Treo or something.

    • Re: (Score:1)

      by 3t3rn4l ( 204282 )
      I think the reason they have cited to order via text is from info they gleaned from owning Jet Black, a high end service previously offered in New York City where one could order a certain set of items via text and have them delivered to one's home: https://www.supermarketnews.co... [supermarketnews.com]
  • If you care at all about your local economies and basic human dignity of employed people, you shouldn't shop with either one. I don't, and I won't.

    • If you care at all about your local economies and basic human dignity of employed people, you shouldn't shop with either one. I don't, and I won't.

      Yeah, well pretty much nobody but you does care. I know because I've worked with customers for decades now, and they are mostly just entitled assholes.

    • That's why I don't shop there and I try to get others not to as well.
      If it is only on those places it's not worth getting.

  • Jason Del Rey could report financial numbers instead of gas lighting people. So what are Amazon's profits from its retail business??? Walmart kicks Amazons ass here. Amazon's profits are from AWS its cloud services. EVERYONE knows this.

    Amazon is competing with Walmart. That's why Amazon bought Whole Foods. Amazon wants a brick and mortar presence.

    And Prime is costing Amazon money. Why do you think Amazon started their own delivery service. Amazon is trying to save delivery costs. But they ar
  • Comment removed based on user account deletion

  • It's that the WM website sucks!

  • Walmart has to fix the quality of product, and above all, the quality of service. Amazons folks are by design are into a positive customer experience. Walmart, not so much.... more of a Meh customer experience. You put up with a lot shopping at Walmart. Lots of mediocrity everywhere.

  • When a company gains monopolistic competitive advantage which cannot resolve itself through regular market mechanisms, then regulatory government intervention is required. Kudos to Walmart for trying, but they should not have to go it alone - and there is a good chance they will fail. Smaller participants will have no chance at all, because this is a typical kind of game where the first-mover advantage is so big that the cost to come in and try to compete as number two, is huge.

    Government should intervene t

Slashdot Top Deals

With your bare hands?!?

Close