re: I bought WMT today

WMT does delivery as well. They contract out with Uber or similar third parties. I struggle with delivery costs in the current grocery model as I’ve typically seen $10/order fees which I think is generally too high as a percentage of an order (unless buying $200+ of groceries). For a family, the benefits are likely still there though. If I want delivery, Prime Now has free two hour delivery and is a tipping model; I adjust the tip based on weight of the items (beverages are heavy but a great convenience to have delivered to the door).

I’ve used WMT pickup a few times and it has been really nice. While grocery pickup has existed for awhile, this is the first time grocers are providing it at scale across all (or eventually all) locations.

eCommerce changes in the grocery industry is one of the more exciting evolutions in retail in my opinion. Consumers utimately win, especially with convenience. My hope is that we eventually move to a more “European” model of buying smaller grocery amounts at a time (e.g., enough for the week only) with more frequent deliveries/stops. I think it would ultimately help cut down on food waste (as a more altruistic benefit) and provide fresher food at the time of consumption.

Operationally, pickup is a lot easier in some markets than others purely based on the space availability. Pickup is generally near the backstock section of the store and additional parking spots are required. In large urban markets, pickup is difficult due to these space constraints so delivery is likely preferred.

I’m just getting back from Ireland and was amazed at how much food delivery exists. I saw guys all around town on bicycles delivering food (I think mostly prepared foods) in what looks like a medium sized ice chest suited as a backpack. This is perfect for urban markets that require nimble parking and short distances. I think cars would be preferred in most US markets since we are so spread out.