At a Glance

  • Walmart has expanded its 30-minute-or-less delivery service to 38 U.S. markets, President and CEO John Furner said on Thursday's second-quarter earnings call, bringing faster fulfillment options to millions of additional customers.
  • The service first launched in 33 markets in May, with Dallas, Chicago, Houston, Denver, and Atlanta among the first cities. New markets include Nashville, Tennessee; Omaha, Nebraska; San Antonio, Texas; Wichita, Kansas; and Winter Haven, Florida, a Walmart spokesperson said in an email to Supply Chain Dive.
  • "Customers who use fast delivery shop with us more often, they engage with us more deeply, and they are more likely to be Walmart+ members," Furner said. "The progress we're making on delivery speed creates yet another reason for customers to choose Walmart for more of their shopping occasions."

Deep Dive

Walmart is among several retailers that have launched and expanded faster delivery options as consumers seek convenient ways to get items quickly, whether it's groceries, medicine, or last-minute gifts.

Leveraging customer demand for faster delivery has been a core part of Walmart's growth strategy in recent quarters, and the 30-minute-or-less service is just one of a growing number of options. This year, Walmart also expanded its drone delivery partnership with Wing and launched one-hour delivery at hundreds of Sam's Club locations.

In the second quarter, gross merchandise volume related to fast delivery—defined as three hours or less—grew 48% year over year, a Walmart spokesperson said.

"Speed matters, and we have a significant competitive advantage," Furner said. "Our physical network, fulfillment infrastructure, and local delivery capabilities allow us to be closer to customers while maintaining an attractive cost structure."

Faster delivery services often come at a higher cost. For example, Walmart's 30-minute-or-less service charges Walmart+ paid members a $10 fee. However, despite the surcharge, the retailer is seeing customers flock to faster services. Executive Vice President and CFO John David Rainey said on the call that this quarter, deliveries where customers paid to speed up order delivery accounted for 37% of store-fulfilled deliveries, a record high.

Stores are becoming increasingly important fulfillment nodes for Walmart. Rainey said sales from store-fulfilled deliveries grew more than 40% in the second quarter. Stores handled the last-mile delivery for 80% of Walmart's e-commerce orders, and for fast delivery, that share jumps to 100%.

Meanwhile, Walmart is also relying more on automation to improve supply chain efficiency. Rainey said Walmart's 3,100 U.S. stores now have "some level of automated freight" service. This means goods received at these stores have been processed and palletized by automated systems, the spokesperson said.

Furner said automation is helping the retailer move inventory more efficiently, speed up delivery, and strengthen inventory levels.

"Automation also enhances the economics of our omnichannel model, and as we increase network density and utilization, speed and profitability reinforce each other," Furner said. "You can see how these advantages compound."