2021 Walmart News

The State of California has filed a lawsuit against Walmart, alleging that the company improperly disposed of products that are considered hazardous waste.

Attorney General Rob Bonta says Walmart has been filling local landfills that are ill-equipped or authorized to handle alkaline and lithium batteries, pesticides, aerosol cans, toxic cleaning supplies, electronic waste, latex paints, and LED light bulbs for the last six years. He cited data from Walmart’s own inspections that show the company unlawfully disposes of more than one million hazardous waste items in California each year.

While typical hazardous waste is bad enough, Bonta’s team said Walmart may have also thrown out customer records with personal information. 

“When one person throws out a battery or half-empty hairspray bottle, we may think that it's no big deal. But when we’re talking about tens of thousands of batteries, cleaning supplies, and other hazardous waste, the impact to our environment and our communities can be huge,”  Bonta said. 

“This lawsuit should serve as a warning to the state's worst offenders. We will hold you accountable. As the People’s Attorney, taking on corporate polluters and protecting public health will always be among my top priorities.”

Walmart doesn’t agree

Naturally, Walmart is defending itself. But rather than making an effort to get in compliance with California’s law, it claims that its corporate sustainability achievements and its past criminal and civil penalty payments fulfill its compliance responsibilities. 

The company said it previously met the requirements of a settlement stemming from a 2010 lawsuit over disposal law non-compliance – one that cost it $25 million to settle. 

E-Scrap News reported that Walmart provided it with data on the amount of regulated waste that was rerouted from its compactors in recent years. That data showed that from 2011 through 2020, the company diverted 40 tons of consumer batteries, 2.8 tons of cell phones, another ton of fluorescent lamps, and larger amounts of materials like tires and vehicle batteries.

The company even provided a court transcript from 2018 showing that the California Attorney General’s office agreed that the retail chain had met its obligations at that point.

However, Bonta’s office didn’t agree and called Walmart a “repeat offender” of disposal violations. 

“Instead of trying to come into compliance with the law, Walmart claims that its corporate sustainability achievements and its past criminal and civil penalty payments fulfill its compliance responsibilities,” Bonta’s office said in a statement.

What exactly is causing supply chain bottlenecks that have created shortages and contributed to higher prices? The Federal Trade Commission (FTC) is launching an investigation to find out.

The agency specifically wants to know if any companies have taken advantage of the situation to raise prices or to engage in “anti-competitive” behavior. It’s asking Walmart, Amazon, Kroger, C&S Wholesale Grocers, Associated Wholesale Grocers, McLane Co, Inc. Procter & Gamble, Tyson Foods, and Kraft Heinz to provide detailed information about their supply chains and the problems they are facing. 

The FTC points out that this is not part of any law enforcement action. It’s conducting the investigation under Section 6(b) of the FTC Act, which authorizes the agency to conduct wide-ranging studies. 

“Supply chain disruptions are upending the provision and delivery of a wide array of goods, ranging from computer chips and medicines to meat and lumber,” said FTC Chair Lina Khan.

“I am hopeful the FTC’s new 6(b) study will shed light on market conditions and business practices that may have worsened these disruptions or led to asymmetric effects.” 

Problems started with the pandemic

Supply chain issues began fairly early in the COVID-19 pandemic, and the situation hasn’t gotten much better. Container ships are still backed up in West Coast ports like Long Beach and Los Angeles and are waiting to unload.

Factories in Asia were shut down for several weeks because of the virus and have struggled to catch up. A shortage of computer chips reduced the number of new cars for sale in the U.S. and that, in turn, caused used car prices to skyrocket.

The FTC said its investigation will seek to understand how these disruptions have affected different industries and what effect they have had on consumers. The agency will also try to determine whether some businesses are taking unfair advantage of supply chain bottlenecks to increase their competitive advantage. Specifically, the FTC wants to know how supply chain issues are contributing to rising prices.

What the FTC wants to know

To comply with the FTC order, the companies that are contacted will be required to detail the biggest factors disrupting their ability to obtain, transport, and distribute their products. The agency also wants information about the impact these disruptions are having in terms of delayed and canceled orders, increased costs and prices, and the products, suppliers, and inputs that have been most affected.

At the same time, the White House is reaching out to grocers and retailers to learn how supply chain issues are affecting the economy. President Biden met with a number of business leaders on Monday to get their input. A White House official says other fact-finding events will be held later in the week.

Nagging supply chain issues have limited imports of a wide range of products, forcing consumer goods to compete for space with industrial and commercial products in the nation’s ports.

Frustrated with backups that don’t seem to have an end, Walmart has begun chartering its own cargo ships. The first vessels are currently moving across the ocean with cargos of Paw Patrol Movie Towers, Batmobile Transformers, and Baby Alive Lulu Achoo dolls.

"Chartering vessels is just one example of investments we've made to move products as quickly as possible," Joe Metzger, U.S. executive vice president of supply-chain operations at Walmart, told Reuters.

Consumers struggle to find out-of-stock items

Supply chain issues have resulted in large gaps in store shelves as a wide variety of consumer products are in short supply. Some shortages are caused by a lack of raw materials that have limited production. Other shortages are the result of a product’s popularity.

Ed, of Moorpark, Calif., said he ordered a toy to be delivered to his grandson as a gift for starting kindergarten. He said the toy was available one day but not the next.

“I called Walmart the night before to make sure all okay,” Ed wrote in a ConsumerAffairs review. “Talked to Supv, he said all good. Ready to go. Got email at 2:01 am stating out of stock. What happened from the night before?”

Kev, of Port Richey, Fla., went from Walmart to Walmart in his area looking for controllers for his PS4 video game system. He said he found a store online that had a couple in stock, but they were gone by the time he got there. He said he thought he was having the same experience at the Spring Hill Walmart until Stephanie, the manager, intervened.

“After 15 min she came back with a whole cart fully stacked with new shipment boxes with all sorts of products but she thought she had seen the items I was looking for,” Kevin wrote in his review. “Yes she was right. Much appreciated to save me time and more hustle finding those **** PS4 controllers.”

Walmart looks to alleviate shortages

By enlisting its own fleet of ships, Walmart hopes to make it easier to alleviate shortages and to meet consumers’ needs. The challenge, however, may be finding places to unload. 

The Marine Exchange of Southern California reports that more than 60 container ships carrying a wide range of consumer products are stuck outside Los Angeles and Long Beach terminals and are waiting for space to unload.

As the last holiday season graphically illustrated, the pandemic has created bottlenecks and delays when it comes to delivering consumer purchases. Walmart has announced plans to alleviate that.

GoLocal is a new delivery service that will be operated by the world’s largest retailer. But in a twist, the drivers will deliver purchases from other local retailers, not just Walmart. The company said it will be a “white label” service, meaning its vehicles will not carry the Walmart logo.

Operations are expected to begin by the end of this year, meaning the service may be available during the holiday season. There will be several delivery options, from two-hour to two-day delivery.

Walmart plans to leverage its significant footprint in the U.S. to operate the new service. It will use a combination of Walmart employees, gig workers, and even other delivery companies to make the actual deliveries.

“In an era where customers have come to expect speed and reliability, it’s more important than ever for businesses to work with a service provider that understands a merchant’s needs,” said John Furner, president and CEO of Walmart U.S. “Walmart has spent years building and scaling commerce capabilities that support our network of more than 4,700 stores and we look forward to helping other businesses have access to the same reliable, quality and low-cost services.”

Building on its delivery experience

Company officials say GoLocal is built on the experience and success of the delivery service that Walmart operates at more than 3,000 stories. After ramping up, the service is expected to employ drones and autonomous vehicles to move purchases to consumers’ homes.

Amazon launched a shipping and delivery service in 2018 but suspended it last year. However, the online retailer operates a fleet of vans to make deliveries to Prime customers.

Walmart executives made a point of noting that GoLocal will be a resource for local, independent businesses that may lack the resources to deliver purchases immediately. They say it could be especially useful for purchases that are of an irregular size or shape.

“We’ve worked hard to develop a reliable last-mile delivery program for our customers,” said Tom Ward, senior vice president, last mile, Walmart U.S. “Now, we’re pleased to be able to use these capabilities to serve another set of customers, local merchants.

Walmart said Tuesday that the Delta variant hasn’t had a major impact on consumer spending. The retailer reported stable earnings in recent quarters. 

"We are not seeing a major shift in consumer behaviors at this point," Walmart Chief Financial Officer Brett Biggs told Yahoo Finance. 

Biggs said customers have recently been buying items like luggage, party supplies, and apparel. Back to school shopping has also gotten off to a “strong” start, and consumers are spending on things like backpacks and items for the classroom. 

Monitoring the situation

The company said its second quarter sales grew 5.2%, beating analysts’ forecasts of growth of 3.12%. Revenue was $141.05 billion, which topped analyst expectations of $137.17 billion. By month, Walmart said July saw the highest sales. All merchandise categories (grocery, health and wellness, and general merchandise) performed particularly strongly that month. 

In an interview with CNBC, Biggs said Walmart is monitoring the Delta situation as it pertains to shopping behaviors, but no apparent shift has been spotted so far. 

“Mask wearing is back up again, but runs on supplies — things we saw last March, April [of 2020] — we really haven’t seen again,” he said.

Walmart has announced that it will give weekly bonuses to warehouse workers who put off taking a vacation in August. The retailer is striving to ensure a smooth flow of warehouse operations through the holiday season, according to the Wall Street Journal. 

Some full-time workers have been offered $200 extra per week, and others have been offered as much as $500. The bonus will vary based on the facility’s location and the worker’s job type, according to a Walmart spokesman. Workers started receiving bonuses this month, and they’ll continue receiving them through the fiscal year. 

Walmart, which has 1.6 million workers, said its distribution warehouses “continue to see high volume as we are preparing for peak season,” a company spokesman told the Journal. 

Perks and pay raises in a tight labor market

Walmart’s decision to add weekly bonuses is seen as an effort to keep business running as normally as possible in a tight labor market with lingering COVID-19 concerns and stretched supply chains. Other large retailers have announced new perks and pay bumps for the same reasons. 

In April, Amazon announced $1,000 hiring bonuses and pay raises for many of its hourly workers. This week, CVS announced that it would raise its hourly minimum wage and eliminate education requirements in an effort to attract and retain employees. CVS said incremental increases to hourly rates will start this month.

In July, Target announced that it would be giving each of its roughly 340,000 hourly workers a $200 bonus as a way of showing appreciation and recognition for continuing to “show up bigtime.” Target also announced this week that it will offer employees a debt-free college education starting this fall. Walmart had already announced a similar education program. 

Walmart’s distribution and fulfillment center workers already have higher pay than store associates, making an average of $20.37 per hour. Earlier this year, Walmart said it planned to give about 425,000 workers raises. 

Walmart announced Tuesday that it will pay 100% of its U.S. workers’ college tuition and books over the next five years -- an investment valued at close to $1 billion.  

The action is an adjustment to Walmart’s Live Better U (LBU) education program. The retailer said it’s dropping the $1-per-day fee previously required for employees to participate in the program to help alleviate the burden of student loan debt. The fee will be eliminated starting August 16. 

The company said the move will help about 1.5 million part-time and full-time Walmart and Sam’s Club associates in the U.S. earn college degrees or learn trade skills without accruing education debt in the process.

“We are creating a path of opportunity for our associates to grow their careers at Walmart, so they can continue to build better lives for themselves and their families,” said Lorraine Stomski, senior vice president of learning and leadership at Walmart. “This investment is another way we can support our associates to pursue their passion and purpose while removing the barriers that too often keep adult working learners from obtaining degrees.”

Adding academic partners and programs

Walmart, which launched its LBU program in 2018, said it is adding four academic partners: Johnson & Wales University, the University of Arizona, the University of Denver, and Pathstream. Existing partners include Brandman University, Penn Foster, Purdue University Global, Southern New Hampshire University, Wilmington University, and Voxy EnGen.  

“We’re adding in-demand college degree and certificate options in business administration, supply chain and cybersecurity,” Stomski said. “These additional offerings join a robust catalog of programs to set associates up for new career opportunities. Our education offerings tie directly to our growth areas at Walmart, and what better way to fill the pipeline of future talent than with our own associates.”

Over the past three years, Walmart said more than 52,000 associates have participated in the LBU program and 8,000 have graduated. Nearly 28,000 associates have been active in an LBU program this summer.

The retailer said it was moved to drop the $1-per-day fee to participate in the program because of changes in the economy and job market.

“Walmart is committed to eliminating the burden of education debt,” Stomski said. “Cost is a leading barrier for earning a degree with student loan debt in the U.S. topping $1.7 trillion.”

Walmart announced Tuesday that it’s begun selling a new low-priced insulin called ReliOn NovoLog -- a private-label version of analog insulin.

In making the drug available, Walmart said it hopes to “revolutionize the access and affordability to diabetes care.” Walmart is hoping the new insulin will be easier for financially strapped diabetes sufferers -- or those without health insurance -- to afford. The prescription-only product will cost about $73 for a vial or about $86 for a package of prefilled insulin pens. 

In an announcement, Walmart noted that more than 34 million people in America live with diabetes, and about 1.5 million more are diagnosed with the disease every year. About 14% of Walmart customers live with diabetes and need insulin.

“We know many people with diabetes struggle to manage the financial burden of this condition, and we are focused on helping by providing affordable solutions. We also know this is a condition that disproportionately impacts underserved populations,” said Dr. Cheryl Pegus, executive vice president, Walmart Health & Wellness.

“With ReliOn NovoLog insulin, we’re adding a high-quality medication for diabetes to the already affordable ReliOn line of products and continuing our commitment to improve access and lowering cost of care,” Pegus said.

Increasing affordability 

Walmart said it worked with pharmaceutical company Novo Nordisk to lower costs “without compromising quality.” Compared with competitors in the branded analog insulin product market, Walmart said the drug will offer savings of up to $101 per vial or $251 per package of branded FlexPens. 

ReliOn NovoLog is intended for use by patients with both type 1 and type 2 diabetes -- both adults and children. The drug will also be available at its Sam’s Club stores starting in mid-July.

“This price point, we hope, will improve and hopefully revolutionize the accessibility and affordability of insulin,” Pegus told reporters. “We know that many people with diabetes struggle to manage this chronic condition because of its financial burden.”

Online shopping scams on Prime Day? You bet. 

While Prime Day might be an Amazon-branded event, the online retail giant isn’t the only company trying to attract customers. Walmart, Target, Kohl’s, and others are also trying to draw in consumers with special deals during the annual shopping event. 

Consumers have been hot on the trail of all the deals being offered. Google reports that searches for “show Prime Day deals” were up 600% in the 24 hours leading up to Prime Day’s official start. Searches for “Walmart Prime Day deals” were up 90%, and searches for “Target Prime Day deals were up 50%.

Unfortunately, more deals mean more chances for scammers to capitalize on the hoopla and bamboozle shoppers. The Better Business Bureau (BBB) says there are several scams that consumers should be on the lookout for. 

Phishing expeditions lead the way

First on the BBB’s list is phishing scams -- a type of fraud in which an attacker sends a fraudulent message designed to trick a victim into revealing sensitive information like a credit card number. 

“Phishing scams increase during busy shopping times, such as Prime Day or Black Friday,” the BBB warns. “When you are making a lot of purchases, it’s easy to lose track of exactly what you bought and where you shopped. That makes you more likely to fall for a phishing scam posing as a big name store.”

Phishing attacks don’t only come in the form of emails. They can also be delivered via text messages and phone calls. In some instances, attackers will try to entice you to click on a link or give up personal information so that you can receive a gift. If you see that kind of offer, then you should stop right then and there because it’s likely a scam. 

One recent phishing con the BBB reported on involved a scammer who claimed to be an Amazon representative who was calling to fix an issue with the victim’s account. This is a favorite ruse because a scammer can load up on personal data -- credit card information, account login details, and remote access to your computer -- in one fell swoop.

Phony websites and fake ads are also in vogue

The BBB says misleading ads and copycat websites are also a favorite tool of hackers.

“When searching online or browsing social media, watch out for ads that point to scam websites,” the BBB advises. “Con artists often create lookalike websites that, at first glance, appear to belong to a trusted retailer. But when you look more closely at the URL, you’ll notice that the domain name is slightly different (i.e., Instead of Popularstore.com, the URL might be PopvlarStore.com or PopularStoreOnline.com).”

Some other telltale signs to look out for include bad spelling and grammar used on the fake website and deals that sound too good to be true. The BBB says consumers should remain a little cautious when looking at special sales on Prime Day. If a company claims to be selling the hottest item of the year at a super low price, then it’s possible that they’re trying to pull a scam.

The agency says smart consumers will also pay attention to deals advertised on social media and regard them with a grain of salt.

Walmart thinks its customer service is so important that it has decided to connect much of its employee base together by giving 740,000 associates a new smartphone loaded with a new all-in-one associate app -- Me@Walmart.

Workers will be given a free Samsung Galaxy XCover Pro smartphone that comes pre-packaged with a case and a protection plan, all free of charge. Associates will only be able to access the app’s work features while they’re on the clock, but they can also use the smartphone as their own personal device if they want to, with all the features and privacy they’re used to.

Walmart is being careful not to rule their employees 24/7, though. Realizing that its employees have a personal life that's different from their one wearing a blue vest, company executives said the app will be loaded with ways to plan for life outside of work -- with the promise of no prying eyes. Walmart says the company will not have access to any personal or private data used in the Me@Walmart app.

Focusing on customer satisfaction

Earlier this year, Walmart stated that customer satisfaction is a priority and that it was hiring necessary workers and retooling its stores to make the shopping experience better. One of the key components of that shift is converting existing store space into part retail space and part fulfillment center space. 

As associates learn how to navigate the changing environments, Me@Walmart can help them simplify and connect the new dots quicker.

“A great customer experience starts with a great associate experience, and our people will always be a competitive advantage,” commented Walmart executive Drew Holler. “As we make enhancements for our customers, we’re also rethinking how we can help our associates succeed in their roles today and deliver some of what they’ll need for the future. The right tools can be the difference between fast and frustrating.”

Improving things for associates, retail stores, and customers

Here’s a breakdown of what Walmart associates will find on their new phone:

Scheduling: The Me@Walmart app allows associates to easily view their shifts as many as two weeks in advance, check on their upcoming paid time off, and request changes to their schedule if needed.

Mobile Clock-In: Goodbye time cards! Using geofencing technology, Walmart workers can clock in with a tap of a button once they arrive at their store.

Push-to-Talk: Remember walkie-talkies? The new app brings back that communication method. The push-to-talk feature will allow associates to instantly connect with one another so they can react collectively to customers’ needs.

Ask Sam: A voice-activated personal assistant for work, the Ask Sam feature saves time by letting associates ask the app questions to quickly locate merchandise and get answers for customers on the spot.

Getting Products on the Shelves Faster: Before the year’s out, another feature will be added to the Me@Walmart app that helps speed up the time it takes stocking associates to get items from the backroom to the sales floor. Instead of sticking with the old way of scanning each box individually to find an item, all associates have to do now is hold up their device and use an augmented reality feature to highlight the boxes that are ready to go. In testing out that feature, Walmart claims restocking will now be three times faster than it was under the manual process.

Having a stable, reliable job has become even more important during the COVID-19 pandemic. Walmart, the U.S.’ largest retailer, has announced that it's going all-out to create more of these positions. 

The company announced on Thursday that it expects two-thirds of its U.S. hourly store roles to become completely full-time positions by the end of the fiscal year. That would create more opportunities for around 740,000 workers.

The new full-time positions will have consistent schedules, with the same hours on the same days each week. That will give associates with families firmer schedules so they can take care of things like picking the kids up from school.

The company said it believes full-time schedules will complement the other ways it’s retooling for the future of retail. In Walmart’s mind, that future will be resplendent with pickup and delivery services. The retailer is also working to convert existing store space to be part retail space and part fulfillment center. The fulfillment component is the sweet spot for full-time jobs at Walmart these days. More than 80 percent of the workers at its distribution centers and fulfillment centers are already at that level. 

“We’re uniquely positioned to offer a combination of stability and room for growth that few others can match. We are prioritizing consistent schedules, skills training and new pathways for growth, so all jobs at Walmart can lead to careers,” said Drew Holler, Senior Vice President, Walmart U.S. People Operations.

“We know offering more full-time opportunities along with skills, training and equipping associates with tools to make work easier will help us continue to attract and retain top talent.”

What a job at Walmart looks like these days

Walmart has moved far beyond greeters in blue vests. Its new employee structure is team-based with pods of 8-12 associates focused on a specific aspect or area of the store. The company feels that having a small team will lead to a more connected, productive, and enjoyable work environment, all of which will result in happier customers. 

The pandemic has also caused a shift in how Walmart protects its employees. The company now has a COVID-19 emergency leave policy and paid time away from work to get vaccinated. 

One unique job-related twist that Walmart has instituted is the deployment of an app called Thrive ZP to inspire its workers to make better choices. Participating has a nice payday too. Workers who stick with the app for 21 days and share their stories have a chance to win a share of $1 million dollars.

The coronavirus (COVID-19) pandemic has changed the way consumers shop and purchase fast-food. As a result of those two trends, McDonald’s and Subway are reportedly closing hundreds of their stores located within Walmarts.

The Wall Street Journal reports that the closings mark the final stages of what has been a relationship spanning three decades. It was brought on by two trends that emerged over the last 12 months.

First, fewer people visited brick-and-mortar locations, moving a larger portion of purchases to online channels. Others came to store locations but never made it inside because they took advantage of curbside pickup.

Restaurants, meanwhile, closed or limited dining rooms and shifted a greater portion of their business to takeout and delivery. Fast-food restaurants within Walmart stores are not exactly set up for drive-thru service.

Plunging profits

With fewer people in stores and in-store restaurants lacking drive-thru windows, these fast-food locations saw profits plunge. McDonald’s, which at one time operated more than 1,000 locations inside Walmart stores, is trimming that number to about 150, according to The Journal.

Subway executives also said they plan to close some of their locations within Walmart stores, a result of sharply declining foot traffic. Even at stores where shoppers are still numerous, people were less likely to purchase or consume food on the premises because of the pandemic. 

“The Walmart locations have been our toughest challenge,” Jim Miller, a Subway franchisee, told The Journal. He said he expects to shutter four of his five store locations within three months.

In-store restaurants have a long history

In the year before the pandemic began, The Washington Post reported that the concept of restaurants located within department stores had become trendy again. Beginning in the 1950s, stores offered restaurants where shoppers could have a meal while taking a break, increasing the chances they would shop longer and spend more money.

In its 2019 article, The Post noted that the revival of in-store restaurants proved profitable because they didn’t carry the same risks as stand-alone restaurants. “They have a guaranteed space, a steady stream of customers, and an ulterior motive: to get you to buy stuff,” The Post noted.

What a difference a year makes. There are now fewer shoppers in stores and, until the pandemic is completely behind us, there may be a reluctance to consume food in the midst of thousands of shoppers.

However, shoppers do get hungry, and the concept of in-store restaurants probably won’t disappear completely. Walmart is reportedly tinkering with its in-store concept and considering restaurant service that can offer take-out and delivery.

Sam Walton’s promise to “Bring it Home to the USA'' is about to hit new heights at Walmart. On Wednesday, the company announced that its support of American jobs will grow its workforce by 750,000 over the next 10 years as part of a $350 billion investment on items made, grown, or assembled in the U.S. 

The big box retailer’s growth plans are centered on six priority categories: plastics; textiles; small electrical appliances; food processing; pharmaceutical and medical supplies; and Goods Not For Resale (GNFR).

Walmart’s commitment will mean an increase in spending and support for small businesses and diverse suppliers and sellers based in the U.S., and it will provide an opportunity for 9,000 entrepreneurs to become Walmart suppliers and sellers through the company’s annual Open Call events. Environmental concerns will also be addressed through initiatives like lowering CO2 emissions by sourcing closer to the company’s customers. 

“We invite basically ANYONE with a shelf-ready product that supports American jobs to pitch it to us,” John Furner, President & CEO, Walmart U.S. said in the company’s announcement.

Introducing “American Lighthouses”

Furner says Walmart is also launching a concept it calls “American Lighthouses.” That concept’s blueprint calls for the company to identify key stakeholders in specific regions of the country to identify and overcome top-down barriers to U.S. production. 

Once those “lighthouses” are established, the trickle-down intent is that they will bring together participants from the supplier community (including manufacturers and non-governmental organizations) with others from the academic community, government, and local and state economic development groups. 

“By bringing together key regions and various stakeholders, we can make the supply chain more efficient. The aim is to bring U.S. manufacturing back in a sustainable, long-term way,” Furner said.

This has to make the Biden administration happy

Furner is certainly singing to the Biden administration’s choir and the president’s recent executive order aimed at strengthening American manufacturing sector. 

“U.S. manufacturing really matters. It matters to our suppliers, to entrepreneurs and to the environment. It matters to our customers - more than 85 percent of which have said it’s important for us to carry products made or assembled in the U.S. And most of all, because of the jobs it brings, it matters to American communities and the people who live in them,” Furner said.

Walmart announced Monday that it’s lifting the $35 minimum order requirement for its two-hour delivery service, “Express.” The move may give the retailer an edge over competitor Amazon, which still has a $35 order minimum on its Prime Now service. 

Consumers can get food, pantry items, household essentials, and other products delivered in less than two hours through Walmart’s Express service. 

The service is available at 3,000 Walmart stores and typically costs $10 on top of a standard delivery fee of between $7.95 or $9.95. However, Walmart drops the delivery fee when customers sign up for a Walmart Plus subscription. 

“Many customers use Express delivery for when they’re in a pinch, whether it be a missing ingredient for a weeknight dinner or a pack of diapers,” Tom Ward, Walmart’s senior vice president of customer product, said in a statement. “Customers told us sometimes the items they needed in a hurry didn’t meet the minimum, so we’re removing it, making it even easier for customers to get what they need when they need it.”

Last May, the company launched its two-hour delivery service on a larger scale in an effort to reach more people staying home due to the pandemic. Walmart notes that its free curbside pickup service still carries a $35 order minimum.

Walmart has added some serious muscle to its same-day grocery delivery program. On Monday, the company announced that it's expanding the store-to-door option to 3,000 stores -- giving 70 percent of the U.S. population access to this time-saving convenience.

To stimulate consumer buy-in, the company is waiving delivery fees on orders of $50 or more when customers enter the promo code “Delivery” when they check out online. Walmart typically charges $7.95 or $9.95 for delivery, depending on how quickly a customer wants their order delivered.

Same-day delivery is also a key component of Walmart+, the company’s $98-a-year membership program that gives online shoppers unlimited fee-free deliveries on orders over $35. It also delivers other benefits like fuel discounts and mobile scan-and-go.

The delivery service battle heats up

Until 2020, most of Walmart’s attention had been on same-day store pickup, which is now available from close to 3,700 locations. But the COVID-19 pandemic has changed everything by creating a demand -- and battle -- for delivery services. Walmart had little choice but to try to put itself in the driver’s seat and keep Amazon, Kroger, Target, Albertsons, and others at bay. 

“As Walmart’s store delivery approaches parity with pickup, the company will be able to market increasingly flexible same-day fulfillment to its shoppers — a key to retaining loyalty as experts predict long-term sustained growth for online grocery shopping,” commented GroceryDive’s Jeff Wells. “These store-based e-commerce services also provide a potent weapon against Amazon, which maintains a fraction of Walmart’s store count.”

Although Walmart scaled its home delivery quickly, it wasn’t without growing pains. “The company relies heavily on last-mile services to complete its deliveries, and it’s had trouble holding onto these partners, with Uber, Lyft, Deliv and Skipcart having backed out of tie-ups with the retailer. Walmart declined to sign on with Instacart, the most popular third-party online grocery platform, until just recently,” Wells said.

Walmart has announced that it plans to build more automated warehouses into its stores this year in an effort to handle the surge in online pickup and delivery orders. 

The automated fulfillment centers will either be built into back rooms of stores or next to the stores. Inside, robots will retrieve items from shelves and bring them to an area where Walmart workers can assemble them for pickup or delivery. 

The automated warehouses will house an array of frequently purchased pantry items, frozen foods, consumables, and electronics. While robots will gather a majority of items, human associates will be in charge of picking out products such as meat, vegetables, and fruit. 

In a post announcing the initiative, Walmart’s SVP of Customer Product Tom Ward said the process can “take just a few minutes from the time the order is placed to the time it’s ready for a customer or delivery driver to collect.” 

Picking up the pace

Walmart says enlisting the help of wheeled robots will help speed up the process of getting goods out to consumers, as well as ease congestion in store aisles. By fulfilling orders faster, Walmart will be able to accommodate more online orders. 

The COVID-19 pandemic led to a dramatic increase in online ordering. Walmart reported that its online sales rose 79 percent during the three months ending October 31 compared with the same period last year. 

"Since the pandemic began we’ve steadily experienced record-high adoption of these services,” Ward said during a call with reporters. “We expect we will continue to serve more and more customers who will come to rely on pickup and delivery as an important part of their lives.”

Walmart has stuck another toe into the world of finance with the creation of a new fintech startup offering a range of financial services to its customers, many of whom have no banking relationship.

It’s collaborating in the venture with Ribbit Capital, the company behind investment platform Robinhood and the consumer technology platform Credit Karma.

Walmart says the venture will combine Walmart’s retail knowledge and scale with Ribbit’s fintech expertise to deliver tech-driven financial experiences tailored to Walmart’s customers and associates.

“For years, millions of customers have put their trust in Walmart to not only save them money when they shop with us but help them manage their financial needs. And they’ve made it clear they want more from us in the financial services arena,” said John Furner, CEO of Walmart U.S. 

Left unsaid is what the new venture will be called and when it will launch. Walmart did say that it would hold a majority stake in the new firm. Walmart also did not disclose what types of services the new company would offer. However, typical fintech companies might offer some or all of these services:

• Banking.

• Insurance.

• Loans.

• Personal finance.

• Electronic payments.

• Loans.

• Venture capital.

• Wealth Management.

Revolutionary partner

Ribbit Capital’s Robinhood has revolutionized online trading. A favorite among millennial investors, Robinhood grew quickly because it doesn’t charge commissions on transactions, a move that forced other online brokers to drop end their commissions as well.

Walmart said its existing financial services remain in place. They include Walmart Credit Card, Walmart Money Card, check cashing, money transfers, and installment financing.

This isn’t Walmart’s first foray into the world of technology. Last year it threw its hat in the ring as a potential buyer of TikTok when the Trump administration said it would force a sale by the company’s Chinese owner.

Walmart is looking to up its grocery delivery game by opening the possibility of consumers being able to get their orders at any time of the day or night. 

In a blog post, the company says it will be conducting a pilot this spring that will allow customers in Arkansas to get fresh groceries delivered to their doors in a temperature-controlled smart box. The boxes are made by HomeValet, and they will reportedly be able to hold frozen, refrigerated, and pantry items.

“Beginning this spring, participating customers in Bentonville, Arkansas, will be able to receive deliveries from their local Walmart directly into a temperature-controlled HomeValet-powered smart box placed outside their home. This gives customers the ability to receive secure, contactless deliveries with the peace of mind knowing their grocery items will stay fresh,” said Tom Ward, Walmart U.S.’ senior vice president of Customer Product.

“The prospect of this technology is intriguing, both for customers and for Walmart’s last-mile delivery efforts. For customers, they don’t need to plan their day around when their grocery delivery will be made. For Walmart, it presents an opportunity to deliver items 24 hours a day, seven days a week,” Ward said. 

Ward stated that Walmart probably won’t be delivering groceries on a 24/7 basis anytime in the near future, but he admitted that the idea “certainly has a nice ring to it.”

“If there’s one thing we know about our customers, it’s that they’re busier than ever. Our pilot with HomeValet is one of many solutions we’re testing that can make their days more manageable,” Ward said.