Nov 21 (Reuters) – Retail giant Walmart (WMT.N) said on Tuesday it would add more delivery stations to its stores as it looks to boost profits with faster deliveries to meet demand ahead of the holiday season.
The move comes ahead of the important Cyber Week shopping period, which includes Thanksgiving, Black Friday on Nov. 24, and Cyber Monday on Nov. 27, when online spending in the U.S. totaled $37.2 billion, according to data from Adobe Analytics. It is expected to reach USD.
The company said in a blog post that it aims to have more than 40 delivery stations by the end of this year, many of which will be operational in time for the holidays and offer next-day delivery for online shopping.
Walmart’s push to speed up deliveries comes as e-commerce giant Amazon (AMZN.O) is investing heavily in centers to offer faster and cheaper deliveries and encourage more frequent and larger orders from customers. It reflects what you’re doing.
“Walmart has the infrastructure and balance sheet to be able to do these kinds of things that a lot of retailers can’t do,” said Joseph Feldman, an analyst at Telsey Advisory Group.
But inflation-weary consumers looking to stretch their holiday dollars are skeptical about paying extra for expedited shipping this shopping season.
According to a study by Adobe Analytics, 61% of consumers would not pay for faster delivery and would instead choose curbside pickup, even for last-minute purchases just before Christmas Eve. states.
Both Walmart and Amazon expressed caution about holiday spending this year, as rising inflation dampens consumer confidence in discretionary spending.
Report by Juveria Tabassum.Editing: Maju Samuel
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