Key Points
Walmart has opened “dark stores” that are not open to the public and serve solely as fulfillment centers to speed up online order deliveries.
CEO Douglas McMillon announced that Walmart is close to reaching 95% of the U.S. population with three-hour or less delivery.
The company has expanded drone grocery delivery to 100 more locations, becoming the first retailer to provide such a service across five states.
Walmart is once again testing the waters with a new opportunity for customers, aiming to boost the quality and efficiency of its online delivery services. While its efforts to provide better service for shoppers aren’t surprising, its latest project might be: Walmart is opening stores that customers can’t actually go into.
This isn’t as strange as it sounds. The largest retailer in the United States — which currently operates 4,800 stores nationwide — is opening brick-and-mortar locations that will only be used to fulfill online orders and not be accessible to its shoppers.
Referred to as “dark stores,” the first of these new establishments is already operating in Dallas, Texas, and another is planned to open in Bentonville, Arkansas.
According to USA Today, you won’t find signage outside these Walmart locations, because they’re not intended to attract customers. However, the interior of the dark stores will resemble the major retailer’s usual outlets, and these locations will carry some of Walmart’s most popular products that customers know and love. The dark stores are designed to serve as fulfillment centers and expedite online deliveries.
During an earnings call this May, Walmart's chief executive officer Douglas McMillon said, “Delivery speed continues to help drive our business. We'll soon reach 95% of the population in the U.S. with delivery options of three hours or less.” McMillon also emphasized that, “For Walmart U.S, the number of deliveries in less than three hours grew by 91% for Q1 versus a year ago.”
This isn’t Walmart’s only recent effort targeted towards reducing delivery times. Earlier this month, the supermarket chain expanded drone delivery to deliver groceries from 100 additional locations, making it the first retailer to offer drone-based grocery delivery across five states.
“We regularly test new tools, features, and capabilities to better connect with and serve our customers — wherever and however they choose to shop,” Walmart explains in a statement provided to Food & Wine. “Regardless of the channel, our goal remains the same: to deliver a fast, seamless, and engaging customer experience.”
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