2022 Walmart News

Now that consumers aren’t as nervous about shopping in-store as they were during the pandemic, are retailers pulling back on curbside options? It depends on the retailer.

Target and Walmart are still committed to offering curbside pickup as an option to shoppers. In fact, Target just added curbside delivery for Starbucks Café beverages and food in 240 locations – adding a food component to curbside delivery.

However, curbside delivery is dropping precipitously at other retailers. A recent report found that the offering of curbside pickup dropped from 34% in 2021 to 25% in 2022. And while some retailers are continuing to offer the service as a holiday shopping perk, it’s possible that the number offering it could drop further after the first of the year.

It may make customer service sense, but not necessarily economic sense

Even though customer service is king, the pluses and minuses of curbside delivery depend on several factors. For some customers, it’s a no-brainer, but for retailers who have to set up special holding sections and people to take orders to the cars, it can be a burden. 

It’s also a buzzkill for retailers who count on foot traffic perusing their aisles and maybe doing some added impulse shopping. 

Then, there’s the issue of returns. Not being able to go in-store and look at the products in person could increase the chance of returns and with returns now costing 21% of the value of the order, curbside may not be the best choice. 

“During the pandemic, employees were available to run items out to customers’ cars. Today, the situation is the opposite. Brands are struggling to hire and retain associates, meaning there is rarely enough staff to ensure the curbside process runs smoothly,” Rick Berger, president of NewStore, told ConsumerAffairs.

What are customers missing not shopping in-store?

In terms of experience, is there anything shoppers miss by not going in-store? Berger thinks there is.

“Curbside isn’t ideal when shoppers are looking to purchase higher-price, specialty items. Brick-and-mortar offers a much better experience in these scenarios because shoppers can touch and try out products before they buy,” he said. Walmart was probably thinking the same thing when it recently rolled out its in-store Netflix "experience."

The other plus Berger sees is that at the same time, shoppers can consult with store employees. Something you can’t get from someone who’s delivering an order and putting it in your backseat.

“Associates aren’t just there to bag up items and take shoppers’ money. They are product and brand experts,” he said.

As an example, he used skiing equipment – a product category that shoppers rely on the expertise of their store guides to help them find the right board, bindings, or boots for them.

“Many factors go into this decision, such as skill level, age, body type, riding conditions, and more,” he said, things where personal and professional insights can benefit a shopper.

As another example, Berger said his company’s researchers found that 72% of the brands they looked at in the luxury segment – such as jewelry – don’t offer curbside pickup because it simply takes away from a curated in-store experience certain retailers pride themselves on. 

“In both cases above, shoppers are making significant, long-term investments that require the personalization that can only happen from an in-person shopping experience. It all comes down to the brand and the products it sells,” he added.

Walmart and Netflix have teamed up to create a new movie-watching experience for customers at the Netflix Hub, which is now available in over 2,400 Walmart stores nationwide. 

What was previously just an online store that sold clothes, toys, and games from popular Netflix shows and movies, has now transitioned to include an in-store component that has more goodies for families to pick up before movie night. 

“I have so many fond memories of perusing the movie aisle looking for the perfect film to watch with my family on movie night, sometimes sneaking a bag of candy or popcorn into the cart along the way,” said Frank Barbieri, vice president of content and digital at Walmart. “This is something I thought my kids would never experience, until now."

Themed snacks, gifts, and collectibles

The in-store version of the Netflix Hub will have more movie and TV show offerings than the online store. Shoppers can expect to find themed snacks, toys, gifts, collectible items, and music from some of the most popular things on Netflix. 

The offerings will also change depending on the season and time of year. As Walmart prepares for the holiday season, shoppers can find advent calendars or holiday cards related to shows like Stranger Things or Squid Games. However, these items will be consistently updated throughout the year to keep the offerings as updated as possible. 

With the holiday season fast approaching, the Netflix Hub will also be full of potential gift ideas for the avid movie or TV watcher in your family. Shoppers can pick up t-shirts, board games, or jewelry -- everything from Cocomelon to Cobra Kai. 

To make the movie-watching experience more personal at home, shoppers can purchase new Concession Kits. These are also themed to your favorite movies and TV shows and can include a combination of snacks, drinks, or even collectible cups to enjoy while streaming. 

Walmart will also offer a Netflix Streaming Gift Card, which will allow customers to start streaming the latest movies and shows without needing to link a credit card to a Netflix account. 

Sam’s Club recently announced that it would be raising its membership prices. The membership club owned by Walmart hiked basic memberships from $45 to $50 per year and top-tier memberships from $100 to $110 per year. 

However, in recent news from rival club Costco, the company announced that membership fees won’t go up right now. Currently, consumers can get an annual basic membership at Costco for $60 and an annual higher-tier membership for $120. 

Richard Galanti, Costco’s Chief Financial Officer, recently announced that the company’s fourth-quarter sales were higher than expected. This in turn translates into members’ annual fees staying put for a while longer. 

Galanti said that while the company typically raises membership fees every five and a half years, with the last increase coming in 2017, there’s no rush to do so right now. During a time of inflation when not many things are going down or even maintaining the same price, the news is certainly positive for consumers.

However, consumers shouldn’t expect to get too comfortable with the current prices. Galanti explained that prices are likely to go up again – but the timeline of the increase remains unknown for now. 

“In terms of membership fees and a possible increase, there are no specific plans regarding a fee increase at this time,” Galanti said in an earnings call. “We’re pleased with our growth in both top-line sales and membership households over the last several quarters and in member loyalty as reflected in increasing member renewal rates. We’ll let you know when something is about to happen.” 

Saving money with membership clubs

A recent report from ConsumerAffairs showed that buying in bulk at membership clubs tends to be worth the annual fee. With groceries and gas costing consumers more than usual, going to Costco, Sam’s Club, or BJ’s can be an affordable way to stock up on the necessities – and fill up your tank. 

The report found that something as basic as toilet paper can cost nearly 5.5% more per roll at smaller retailers compared to buying larger quantities at a membership club.

While shoppers with lower incomes tend to not be able to afford to buy in bulk, there are savings to be found when doing so – especially when looking at the costs of these items in smaller grocery or convenience stores. 

The big increase in inflation this year has sent more people to warehouse membership clubs where, for a fee, consumers can buy in bulk and sometimes save money. As demand for these memberships grows, one warehouse – Sam’s Club – is increasing its membership fee.

The retailer, owned by Walmart, is increasing the annual membership fee from $45 to $50 – still less than rival Costco’s $60 annual fee. Sam’s Club’s top-tier membership is also going up from $100 to $110.

The new fees take effect Oct. 17.

It’s the first fee increase for Sam’s Club in nine years and the first for the top-tier membership, known as “Sam’s Club Plus.” The retailer, along with its competitors, has benefited from inflation. Budget-conscious shoppers have increased their memberships, especially as gasoline prices hit a record high in June.

According to CNBC, Sam’s Club CEO Kath McLay disclosed the fee increase in a message to members, saying the company is mindful of the economic pressures that many families face. Because of that, McLay said the company will reimburse members the amount of this year’s fee increase in the form of “Sam’s Club Cash” that can be used in stores.

Membership income is growing

Sam’s Club operates about 600 stores in the U.S. and in Puerto Rico. The company does not report the number of members it has but has apparently seen the membership rolls grow this year. In its most recent quarterly earnings report, Sam’s Club said income from membership fees rose nearly 9% during the quarter that ended July 31.

In addition to food and gasoline, warehouse clubs like Sam’s Club, Costco, and B.J’s Warehouse sell home furnishings, apparel, and electronics. Faye, a Sam’s Club member from Warren Mich., uses the store as a place to purchase hearing aids.

“I came in on April 19, 2022, and he spent a long time preparing my hearing aids and be sure they worked well,” Faye wrote in a ConsumerAffairs review. “I left (the) same day and I could hear. I would recommend him to anyone.”

A 2021 study found that members of warehouse clubs do save money if they can afford to buy in bulk. The study found that more affluent consumers shop at these warehouses because they can afford to buy in bulk while lower-income consumers end up paying more for smaller quantities at other retailers.

Chris Cracchiolo, senior vice president and general manager of Walmart+, has announced that Walmart has created a new rewards program for members of Walmart+ – Walmart Rewards. The program is aimed at helping Walmart+ members save more money at the store, which has recently expanded to include discounts on gas and prescriptions. 

“At Walmart, everything we do is in service of the customer,” Cracchiolo wrote. “Sam Walton used to say, ‘Give customers what they want, and a little more.’ This is our ambition with Walmart+ – to offer a suite of benefits that are additive for our members. And as the needs of members evolve, we evolve right alongside them.” 

What can shoppers expect?

The new rewards program is designed to offer Walmart shoppers discounts and special offers on a wide range of products – groceries, pet supplies, and home needs. Right now, the program is only offering rewards on specific items, though future evolutions of Walmart Rewards may include other features. 

To start saving money, consumers simply start shopping. When scrolling through the Walmart app or website, members will see the option to add a reward to a specific item.

The example shown in a video available on the Walmart company blog is the option to add a $0.75 reward to a bottle of ketchup. Once the reward is selected, it will be added to the Reward Center, which is available in the Walmart wallet in the app and online.

These rewards can then be used towards lowering the price of future Walmart purchases, both in-store and online. The more that customers shop, the more rewards they’ll rack up, company officials say.

For current Walmart+ members, this rewards program is live, and no extra steps are necessary to start saving money. If you’re logged into your Walmart account, either on the app or the website, you’ll start seeing items eligible for discounts. 

Currently, Walmart+ members receive:

• Unlimited free delivery on any items ordered online
• Scan and go, which allows customers to use their phones to scan items in the store and pay for them digitally
• Most recently, a subscription to Paramount+.

This latest effort is geared towards saving customers more money on items they’re already buying. 

“We’ve always been committed to saving members time and money, and with Walmart Rewards, we’re rewarding members for shopping with us through added savings on the items they want and need most,” Cracchiolo said. “It’s a little more that adds up to a lot.” 

Just about every online retailer will offer a few products – mostly computers – that are refurbished. The price is usually a lot less than if the item was new.

Walmart has taken the concept a step further by setting up Walmart Restored, a section of Walmart.com that only sells used or refurbished products. In addition to computers, Walmart Restored offers TVs, smartphones, cameras, audio gear, large and small appliances, and video games.

Walmart has struggled recently because consumers have shifted much of their spending away from products and toward food and gasoline because of inflation. The retailer says it is offering a portfolio of refurbished products to counter rising prices.

“In a year when customers are looking for ways to save money, like-new refurbished products have become an increasingly popular way to cut down on costs without sacrificing quality,” the company said in a statement.

Walmart says all products listed on Walmart Restored have been professionally inspected, tested, and cleaned. It offers a 90-day free return policy to help boost customer confidence in the used products.

Example of the savings

The savings from the new offering can be significant. Walmart Restored currently offers a 50" 4K Roku Smart LED TV for $218. The same TV sells for new at a competitor for $300.

In the small appliance category, a refurbished Panasonic 2.2 Cu. Ft. countertop microwave oven is priced at 169.95. It generally sells new for upwards of $210.

Walmart says it works with sellers and suppliers who are committed to refurbishing top-quality products and preparing them for resale at a fraction of typical costs. Walmart Restored will increase their number and put them together in one place to make shopping easier. Brands included in the section include Apple, Samsung, and KitchenAid.

How reliable will these products be? It may depend on the product. The experts at TechPenny.com say the reliability of refurbished TVs can be hit or miss. One answer may be to purchase an extended warranty, but that cost has to be weighed against the savings from buying a refurbished product.

Back-to-school shopping is underway, and despite inflation that is running at 9%, shopping at major retailers is producing a surprising number of bargains. Food and gasoline may cost more, but shoes, apparel, electronics, and school supplies are getting marked down.

When it reported second-quarter earnings this week, Walmart disclosed that it is feeling one of the many distortions caused by the pandemic. It aggressively ordered inventory over concerns about supply chain bottlenecks.

The goods arrived in abundance at just about the time consumers shifted from buying products during the pandemic to spending more on services and travel. Walmart executives said that left the retailer with piles of inventory that it will need to mark down to sell.

Good timing for back-to-school shoppers

The timing couldn’t be better for parents who are getting their children ready to return to school. Justice girl T-shirts that usually sell for $17 have been marked down to $6.80.

A refurbished Apple 13.3-inch MacBook Air that was originally priced at $269.99 is now selling for $219. It comes in a bundle that includes a headset, case, and wireless mouse. 

Walmart.com is promoting a big sale on apparel, with savings of up to 60% off. The deals are only available to online shoppers.

Walmart isn’t the only major retailer in the position of having to liquidate merchandise, almost at any price. Target announced in May that it was overstocked in a wide range of inventory, with many items now on sale. Kids' shoes are now 20% off, kids’ jeans have been marked down by 30%, and the retailer is selling school supplies starting at 25 cents.

A package of pencils is 50 cents, and a package of three pens is 99 cents. Binders also start at 99 cents.

Savings on electronics

When it reported earnings this week, Best Buy said its inventory levels are about the same as during the pandemic. But the company said it is seeing slower sales because of inflation and is marking down some items to move them.

A check of the Best Buy website shows that a stainless steel Cuisinart air fryer toaster oven has been marked down by $100, to $129.00 – a discount usually reserved for Black Friday.

The best deals are offered to Best Buy Members, who can save up to $370 on select Windows laptops. Inflation-weary consumers may find other bargains at other stores.

"There are [pricing] problems in apparel, home furnishings, furniture and, to a certain extent, electronics," Neil Saunders, the managing director of GlobalData, told NBC News "Those three areas going to be the ones where you'll see the most discounting."

The Federal Trade Commission has filed a lawsuit against Walmart, accusing the retailer of allowing its money transfer services to be used by scammers who require untraceable methods to take money from their victims.

In its complaint, the FTC charged that Walmart has “turned a blind eye” while scammers instructed their victims to use the company’s money transfer services to send them cash that could not be retrieved once the victim realized it was a scam.

The agency claims Walmart failed to properly train employees to recognize that a customer was sending cash to a criminal or to warn customers when employees suspected they were about to become scam victims. The FTC said the retailer had a financial incentive to allow the crime.

“While scammers used its money transfer services to make off with cash, Walmart looked the other way and pocketed millions in fees,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “Consumers have lost hundreds of millions, and the commission is holding Walmart accountable for letting fraudsters fleece its customers.”  

Walmart pushes back

Walmart strongly pushed back against the charges, calling the suit “factually flawed and legally baseless.” In a statement, the retailer said that even the U.S. Justice Department declined to sign on to the complaint.

“Claiming an unprecedented expansion of the FTC’s authority, the agency seeks to blame Walmart for fraud that the agency already attributed to another company while that company was under the federal government’s direct supervision,” the company said. “Walmart will defend the company’s robust anti-fraud efforts that have helped protect countless consumers, all while Walmart has driven down prices and saved consumers an estimated $6 billion in money transfer fees.”

A decade ago the FTC brought a similar action against Western Union, charging the company was negligent in allowing scammers to use its money transfer services. A court ordered the company to pay millions of dollars to victims who used Moneygram to send money to scammers. In fact, victims can still make a claim – the new deadline is Aug. 31.

In its suit, the agency said it is asking the court to order Walmart to similarly compensate scam victims.

Red flag

The reason scammers prefer a money transfer service to receive money from their victims is simple. Once the money is sent it cannot be retrieved or traced, leaving the victim with no way to get their money back.

Scammers also instruct their victims to put money on gift cards and give them the numbers. Once a scammer has drained the funds from the gift cards, there is no way to get it back.

Both requirements — to pay someone with a money transfer or gift card and not a credit card — should be a huge red flag. In nearly every case it is a telltale sign of a scam.

Walmart says there’s a path for everyone at the company – especially students.

On top of traditional part-time roles for high schoolers and college students, the company just announced a new pilot program called College2Career that gives young professionals a way to kickstart their professional lives by managing a Walmart store. Those positions could eventually lead to a lucrative career that earns graduates over $200,000 per year as an annual salary.

We aren't quite halfway through 2022, but Walmart’s hiring efforts are already making it a banner year. The company recently said it would hire more than 50,000 workers in a new business push, and it hiked wages for truckers to as much as $110,000 a year to address a driver shortage.

Program specifics

The new pilot program is for recent college graduates and current college students, including existing Walmart employees who graduated within the previous 12 months. 

Those who sign up for the program will reportedly gain hands-on experience, classroom training, and one-on-one mentoring with company leaders – everything the company feels is necessary to learn the ins and outs of Walmart and qualify to be a salaried member of management at a local store. 

When all is said and done at the end of the program, Walmart said the top performers in the program would be offered the newly created management job of “emerging coach,” complete with a starting wage of at least $65,000 a year. College students will be able to step into the role after they graduate, while recent grads will start immediately.

“That’s just the beginning,” the company said in announcing the program. "We see the emerging coach role as an additional pipeline to develop high-potential talent into future store managers, the latter role with an average wage of approximately $210,000 in 2021. With College2Career, we are aiming to move emerging coaches to store managers within two years."

In an effort to sign and retain more members of its subscription service, Walmart is offering an extra discount on gasoline.

Starting today, Walmart+ members will get a 10 cents a gallon discount when they fill up at participating gas retailers. The company has added 12,000 Exxon and Mobil stations across the U.S. to its promotion, raising the number of outlets where the discount is available to more than 14,000.

Gas discounts are also available at Walmart and Murphy’s gas pumps, as well as at more than 500 Sam’s Club locations.

“Ninety-one percent of our customers are aware of the increased prices at the pump and nearly half of those told us they are changing behaviors because of them,” said Chris Cracchiolo, senior vice president and general manager of Walmart+. “More access to a bigger discount will make a difference for our customers.”

Walmart+ launched 18 months ago as an answer to Amazon Prime. For $98 a year or $12.95 per month, subscribers receive free shipping on online orders, free grocery delivery on orders of at least $35, and discounts on prescription drugs.

Inflation strategy

In late 2021, Walmart CEO Doug McMillon told CNBC that the retail giant planned to use rising inflation to its competitive advantage, offering consumers relief. Since then, nowhere has inflation been more evident than at the gas pump. The war in Ukraine sent gas prices to a record high in March before pulling back slightly.

The company says the new gas benefit will provide real savings on something most consumers have to buy. It also hopes the benefit will attract new Walmart+ subscribers and retain consumers who have already signed up.

Walmart does not report the number of subscribers to Walmart+, but it has said the subscription service is a key part of its strategy to grow online sales. 

To use the new fuel discount, Walmart+ subscribers are instructed to find their nearest Exxon/Mobil location using the location map. Upon arriving at the pump, subscribers sign into the Walmart+ app on their smartphone.

If location services are turned on, customers will get a popup asking if they are ready to fuel. They then enter the pump number and begin fueling.

To make sure its supply chain keeps up with the rest of its business, Walmart is raising wages for its in-house truck drivers. In an announcement, Walmart announced that it's raising its starting salaries for truck drivers to a range between $95,000 and $110,000 a year – up from the current first-year average salary of $87,000.  

Truckers are in high demand, and the industry as a whole is facing a very tight labor market. To ensure that segment stays healthy for the long haul, Walmart is expanding a program to train workers to become drivers. 

For employees who decide to take advantage of that program, all that's required is a 12-week course commitment to become fully certified. After that, those drivers will also have the potential to make up to $110,000 in their first year with the company. And that’s just to start. Walmart said drivers who have been with the company longer can earn even more, depending on factors like tenure and location.

Walmart has been doing a lot of hiring recently, but compared to its other job roles, it says its trucking gigs are “destination jobs.”

“The investments in pay and training build on multiple recent driver bonuses and improved schedules that enable drivers to spend more time at home,” the company claims. “There’s never been a better time to join our fleet. Once drivers are on board, this is a job many leave only for retirement.”

Other companies also likely to raise pay

The carrots that Walmart is dangling are certainly enticing. Compared to the $48,978 average salary a long-haul trucker makes per year, Walmart’s offer is nearly twice as high. However, the company might not be the only one trying to romance drivers to join its ranks.

“To attract and retain drivers, fleets must increase pay, which is now happening at extraordinary levels,” said the American Trucking Association (ATA). “We’re witnessing unprecedented pay increases across the industry, with weekly driver earnings surging at a rate more than 5x their historical average—up more than 25% for long-haul, truckload drivers since the beginning of 2019.”

The ATA said trucking fleets are also offering substantial, five-figure sign-on bonuses and full benefits to compete for the same limited pool of drivers.

Walmart is going on a massive hiring spree. By the end of April, the big-box retailer says it will hire more than 50,000 workers – a push that will make it the largest private employer in the U.S.

In addition to the 3,000 jobs it recently announced for its home delivery service, the new jobs will cross other company lines. That includes more store employees, personal shoppers for the company’s advertising and health businesses, and positions in its expanding direct-to-refrigerator grocery delivery service. 

One of Walmart's biggest employment pushes will happen in its technology sector, Walmart Global Tech, where the company plans to hire more than 5,000 associates globally. Many of those jobs will be located in Toronto and Atlanta, two cities with an abundance of tech talent and large numbers of existing Walmart employees.

Increasing wages to compete for workers

Walmart is not alone in looking for employees; consumers can hardly drive a couple of miles without seeing a few “now hiring” signs. But it might have to increase its pay rate if it’s going after the same pool of job seekers that Amazon, Target, and Costco are.

At present, workers start out at. $16 per hour at Costco, $15 per hour at Amazon, and up to $24 per hour at Target. In comparison, the base rate at Walmart is $12 per hour.

Not withering away from its competitors' wage hikes, Walmart spokeswoman Anne Hatfield told CNBC that the company's magnitude gives employees the chance to move into higher-paying roles. She said hourly pay is as much as $26 per hour for “team leads” at company stores. At distribution and fulfillment centers, pay starts at $16 per hour for supply chain workers’ but can rise as high as $30 per hour.

Because competitors are upping their benefits game, Walmart is stepping up its benefits too. Like Target, Walmart recently added a college tuition perk via its Live Better U program.

In a move that’s certain to ruffle some feathers at Lowe’s, Best Buy, and other competitors, Walmart has announced that it will now be offering installation services. 

The big-box retailer is entering into a new arrangement with in-home services provider Angi (formerly Angie’s List) to help homeowners do everything from setting up electronics to flooring, painting, plumbing, electrical, and assembly services for furniture.

By the time everything is in place, Angi said its services will be available in nearly 4,000 Walmart stores across all 50 states. For the moment, the Walmart-Angi deal is exclusive for a limited time. 

“Since the start of the pandemic, the home is in focus and people across the U.S. are doing more home improvement, maintenance and repair work and they are often turning to Walmart to find the tools and materials needed to start those projects,” said Angi CEO Oisin Hanrahan.

"Things like sprucing up an entertaining space by installing a new smart TV, painting a nursery for a family addition, and transforming an outdoor space and adding a patio are now projects that Walmart customers can get done seamlessly with the help of an Angi pro as part of the Walmart shopping experience.”

Good deal for consumers

If Angi and Walmart can stick to their guns on pricing, what they’re offering looks like a pretty good deal. As an example, ConsumerAffairs did an apples-to-apples comparison on what Best Buy’s Totaltech charges for a flat TV installation vs. what Angi is pitching. Best Buy lists its price for that service at $199.99. Angi says its starting price for the same service is $79. HomeAdvisor estimates that the price range for installing a TV is between $159 and $361, or an average of $260.

The cost of furniture assembly appears to be another plum for Angi. Target lists a price of $76.99 for its “large furniture assembly powered by Handy;" the price Angi/Walmart announced starts at $49. 

There are several things consumers should keep in mind when looking at installation prices, though. One of those is the phrase “starting price” – a factor that a consumer would have to ask for more specifics on before moving ahead with ordering an installation.

Another thing consumers should watch out for is the possibility that Angi’s prices are “introductory” and could change after a certain period of time. Thirdly, advertised prices may not include labor, the TV mount, or reflect the complexity of the job. Smart consumers should be prepared to ask a lot of questions before agreeing to use the service.

Depending on the item, purchasing a service can either be done when buying it in-store at Walmart. For more complicated installations like flooring, consumers can go online to Walmart.com.

Angi’s pitch to consumers is that the process is as easy as purchasing any other item at Walmart. Once the item is purchased, Angi will reach out to coordinate booking and ensure that the service is completed to the customer’s satisfaction.

Empty store shelves, a fixture during the early days of the COVID-19 pandemic, are back. Consumers around the country report that many items are once again hard to find.

In the Dallas area, over-the-counter (OTC) medications are harder to find. The Dallas Morning News reports that spot checks at eight Walmart, Target, Walgreens, CVS, and Sam’s Club locations in northeast Dallas found many empty shelves. 

In the nation’s capital, a number of stores are offering reduced supplies of products. According to Fox 5, a Washington, D.C. TV station, grocery shoppers are encountering reduced supplies of beef, pork, eggs, and maple syrup. 

Trader Joe’s customers have taken to Reddit to report bare shelves in stores throughout the Mid-Atlantic region. 

Reduced workforce

Industry insiders point to several factors contributing to shortages. While normal supply chain functions have slowly improved, snowy weather along the East Coast in the last couple of weeks made supply chain problems worse.

A bigger factor may be the fast-spreading Omicron variant of COVID-19 that is sidelining thousands of workers who normally load trucks and restock shelves. Helen, of Milwaukee, tells us that she encountered this problem when she attempted to pick up her prescription at a CVS drive-thru.

“Get to the pharmacy, the drive-thru is closed,” Helen wrote in a ConsumerAffairs post. “Call the pharmacy and they said they were short-handed and could not give me my paid prescriptions through the drive-thru, that I had to come in and pick up my drugs. I stated that I am a high risk for COVID. That's why I use the CVS drive-thru. She said she couldn't help me.”

A report by Slate suggests that the latest shortage of consumer goods could last for a few more weeks. It notes that supermarkets have been hard-hit by the Omicron variant at a time when staff levels were already low.

Meanwhile, Bloomberg reports that cases of the virus have surged among the staff of SpartanNash, a major Midwest grocery chain and supplier. It reports that about 1% of the company’s employees have tested positive in the last few weeks.

Walmart ramped up its grocery delivery service during the pandemic, and it paid off. Now, the retailer is putting more resources into that part of its business by hiring more than 3,000 more drivers to make deliveries.

Walmart’s InHome service is currently available to an estimated six million U.S. households. Once the expansion is completed, Walmart says 30 million households will be able to receive store-to-refrigerator grocery deliveries.

“Now you’ve got this ultimate convenience where you get home, the refrigerator is restocked and other items like video games, clothing, toiletries, and other non-perishables are on the countertop,” Tom Ward, senior vice president of last-mile delivery at Walmart, told CNBC.

There is no doubt that grocery delivery has been popular with consumers, but some posting reviews at ConsumerAffairs have suggested there are a few bugs in the system. Dave, of Atchison, Kan., said one of his recent orders never arrived but that he received a text informing him that it did.

“Contacted support via text and was told order was canceled and refunded,” Dave wrote in a ConsumerAffairs review. “Next day USPS delivers Campbells Chicken Soup then delivery driver brings toilet paper, tissues, ketchup, relish, gum, stuffing, chips and chocolate syrup... ALL other items missing.” 

Susan, of Cape Canaveral, Fla., tells us she was very happy with the delivery service the first few times she used it. Lately, she says it has been unpredictable.

“Even with grocery delivery, they have started sending ordered items different days through the mail,” Susan wrote. 

A bigger stake in the delivery business

Walmart stated that additional staffing may be able to help iron out those wrinkles. According to CNBC, the company’s investment is making it a major player in the delivery business, competing with the likes of DoorDash, Instacart, and Amazon Fresh.

Walmart will charge $19.95 a month, but there will be no additional fees. Amazon Fresh is included with a $12.99 a month Prime membership. A DoorDash subscription costs $9.99 per month but requires a minimum of $12 for restaurant orders.

Target makes deliveries through its subsidiary Shipt. A Shipt membership costs $99 a year and provides free deliveries for members. Non-members pay $9.99 per delivery.