Walmart (NYSE:WMT) announced that the retailer will roll out next day shipping after one of its biggest competitors made a similar announcement.
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Here are seven things to know about
- The company announced that it will begin offering one-day shopping after Amazon said it will upgrade its Prime membership offering the U.S. that will reduce two-day shipping to only one day.
- Amazon’s move will take place over the course of 2019, while Walmart said it has already started providing customers with its “NextDay” option.
- However, this option is only available in Phoenix and Las Vegas with a limited inventory that only applies to 220,000 items.
- The decision will be extended to Southern California in a few days.
- It will reach roughly 75% of the U.S. population by the end of the year.
- There are other differences between the two deals as Amazon requires a $119 annual membership, while the Walmart deal is only available to those who place orders of $35 or more.
- “We feel good about where we are and where we’re going,” Marc Lore, Walmart’s head of US e-commerce, said in an interview. “We’re expecting, based on research, customers to really appreciate the upgrade here.”
WMT stock is up roughly 0.4% on Tuesday following the news and it then increased a fraction of a percentage after the bell. It remains to be seen how this test helps the retailer out.
