logo
Walmart Changing Online Delivery: What to Know

Walmart Changing Online Delivery: What to Know

Newsweek5 hours ago

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
Walmart has begun testing out mini warehouses closed off to the public to facilitate faster distribution and compete with its rivals in the e-commerce space.
According to a report by Bloomberg, cited sources familiar with the matter, Walmart has already opened one of these "dark stores" in Dallas, Texas, with plans for further distribution centers in the pipeline.
Walmart told Newsweek, "Regardless of the channel, our goal remains the same: to deliver a fast, seamless, and engaging customer experience."
Why It Matters
The employment of these fulfillment centers could streamline Walmart's deliveries and allow the company to gain ground on Amazon and others in the fast-growing e-commerce market, projected to reach over $2 trillion in value by 2030, per industry estimates. Walmart has also stated that expanding its national customer reach is a strategic priority, behind both the push for faster deliveries as well as the new store openings announced earlier this year.
What To Know
According to Bloomberg, the new "dark stores" will resemble Walmart's traditional retail outlets, stock most of its best-selling items, and extend the capabilities of its current stores and distribution centers.
Walmart has tested alternatives to its in-store shopping model for years, such as the opening of "Pickup Point" in 2019 – a 40,000-square-foot store outside Chicago where customers could drive and collect their online orders.
A Walmart delivery van parked in front of the Walmart Torrance Market, on April 3, 2025 in Torrance, California.
A Walmart delivery van parked in front of the Walmart Torrance Market, on April 3, 2025 in Torrance, California.
Jay L. Clendenin/Getty Images
The latest experiment would make Walmart one of many big retailers to remodel warehouses into dark stores, many of which began experimenting with the idea amid the COVID-19 pandemic. Whole Foods opened a closed-off fulfilment center in Brooklyn in 2020, while others, such as supermarket chain Kroger, began experimenting with this "ghost" delivery method, as have several fast-food chains, Forbes reported in 2022.
Expanding its online business and delivery capabilities has long been central to Walmart's growth strategy. CEO Doug McMillon touched on this during the company's most recent earnings call, after Walmart announced 2.5 percent growth in revenue for the first quarter and a 22 percent increase in its global e-commerce sales.
"Delivery speed continues to help drive our business," McMillon said. "We'll soon reach 95% of the population in the US with delivery options of three hours or less."
What People Are Saying
A Walmart Spokesperson told Newsweek: "We regularly test new tools, features, and capabilities to better connect with and serve our customers—wherever and however they choose to shop. Regardless of the channel, our goal remains the same: to deliver a fast, seamless, and engaging customer experience."
Chief Financial Officer John David Rainey, during the company's recent earnings call, said: "There are a few things that have driven the [first-quarter] performance, notably in the US... one is the densification of our network. And what I mean by that is, we have more customers that are coming to Walmart now and taking advantage of our eCommerce offerings."
What Happens Next?
Bloomberg reports that Walmart's next dark store will be in Bentonville, Arkansas.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Salesforce AI is handling customer inquiries with 93% accuracy, Marc Benioff says
Salesforce AI is handling customer inquiries with 93% accuracy, Marc Benioff says

Business Insider

time20 minutes ago

  • Business Insider

Salesforce AI is handling customer inquiries with 93% accuracy, Marc Benioff says

Marc Benioff is all in on AI at Salesforce, and he said it's working with grade-A accuracy. The 60-year-old Salesforce founder and CEO told Bloomberg's Emily Chang that the company is having "hundreds of thousands" of AI conversations with customers, and they are 93% accurate. "Even for a large brand or a large company that we work with, like Disney, it's about 93%," Benioff said in the interview published Thursday. In February, Benioff told investors that Agentforce, Salesforce's platform for building AI agents, was seeing "amazing results" in resolving tens of thousands of customer service queries. It allows "human employees to focus on the most nuanced issues and customer relationships," he said. When it comes to the ethics of AI potentially replacing human roles, Benioff said it's a "digital labor revolution" — and it could pay off in the trillions. However, it's on CEOs to make sure their "values are in the right place." Benioff told Chang that we're looking at the deployment of an estimated $3 trillion to $12 trillion of digital labor. That labor could look like AI agents or robots. "AI is doing 30 to 50% of the work at Salesforce now," he said, adding that the technology is supporting "key functions like engineering, coding, support." Salesforce, meanwhile, is cutting more than 1,000 jobs in 2025, as Bloomberg earlier reported. The company had about 76,500 employees as of January, according to its most recent annual report. Still, Salesforce is hiring. On Thursday afternoon, its careers page listed 359 open roles in the US. Last year, Salesforce launched Career Connect, an AI tool built to help employees find internal jobs they'd be a good fit for based on skills and job history. Benioff is also using AI in his own work, including to work on his annual business plan. It's less lonely at the top with an AI helper, he said.

Capital requirements, a Fed reno and Trump overshadow Powell hearings
Capital requirements, a Fed reno and Trump overshadow Powell hearings

Yahoo

time24 minutes ago

  • Yahoo

Capital requirements, a Fed reno and Trump overshadow Powell hearings

This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. It's a given that interest rates, inflation and tariffs would be hot topics during Federal Reserve Chair Jerome Powell's appearances this week in front of House and Senate lawmakers. Perhaps less expected may have been lawmakers' anticipation of a Fed board meeting Wednesday with an eye toward decreasing the enhanced supplementary leverage ratio, the calculation of how much capital banks must hold relative to their assets. Under current rules, the capital requirement for bank holding companies is 5%. That figure, for those companies' banking subsidiaries, is 6%. But one potential proposal could reduce that level to between 3.5% and 4.5% for holding companies and their banking subsidiaries, Bloomberg reported this month. And the revised ratio could exclude specific assets such as Treasuries. Such a move would free banks to trade more heavily in the $29 trillion Treasuries market. But the ranking member of the Senate Banking Committee warned, in a letter to one of Powell's colleagues this week, that banks would more likely take the capital from a reduced eSLR and return it to shareholders rather than investing it. 'Bank lobbyists often mislead policymakers and the public by implying … that easing the eSLR would free up a pot of money for banks to lend more or buy more assets, like Treasuries," Sen. Elizabeth Warren, D-MA, wrote Monday to Fed Vice Chair for Supervision Michelle Bowman. 'Instead, megabanks appear motivated by the short-term benefits of capital deregulation for shareholders and executives: increased dividends, buybacks, and bonuses.' In her letter, Warren cited comments JPMorgan Chase's then-CFO made in 2021, when temporary tweaks were made to the supplementary leverage ratio in the face of COVID-19 pandemic-related market stress. Changes to the SLR would 'impact the pace of capital return,' the JPMorgan executive said at the time, according to The New York Times. Warren, for her part, said it would be 'irresponsible to slash the eSLR in any economic environment [but] especially reckless to do so given the numerous threats to the economy and the nation's financial system.' Her letter was also addressed to Acting Comptroller of the Currency Rodney Hood and Federal Deposit Insurance Corp. Acting Chair Travis Hill. The FDIC board will meet Thursday to discuss eSLR requirements. 'Banks … assert that the eSLR should be lowered because it is too often the primary constraint on Wall Street risk-taking,' Warren wrote Monday. 'Big banks would much rather have risk-weighted capital requirements be their primary constraint, since they know how to manipulate them." Powell, in testimony before the House Financial Services Committee on Tuesday, told lawmakers the potential eSLR changes are meant to make the ratio a backstop instead of a binding constraint for banks. 'When the leverage ratio is binding, it discourages banks from undertaking low-margin, fairly safe activities such as mediation in the Treasury markets,' Powell said. '[The changes] should encourage more mediation.' Another perhaps unexpected source of discussion in Powell's Senate panel hearing Wednesday pertains to renovations at two Fed offices in Washington, D.C. Six Republican senators wrote Powell on Tuesday, asking the central bank chief to justify a refresh that reportedly includes rooftop garden terraces, ornate water features and white marble. The Fed initially said the renovation, once billed at $1.9 billion, was meant to address a backlog of necessary building code upgrades and IT requirements, according to the senators. But the cost has allegedly swelled to $2.5 billion, spurring the senators to castigate the Fed for its 'lavish' choices while 'Americans are struggling to put food on the table.' The senators also lauded the Fed for eliminating reputational risk as a facet of bank examinations, but argued there is 'significant work ahead to right-size the regulatory framework for financial institutions.' 'Banks are facing a record number of regulations,' the senators wrote. 'Small community banks are especially burdened by compliance costs and are increasingly priced out of growth' over such obligations, they added. The senators urged Powell to give Bowman the space and trust to reassess and right-size the Fed's regulatory footprint. To be sure, much of Tuesday's House panel hearing focused on the expected topics. The Fed, Powell said, is 'squarely focused' on balancing its dual mandate of achieving maximum employment and stable prices. Inflation 'has come down a great deal but has been running somewhat above our 2 percent longer-run objective,' he said in his opening statement, adding that the effect of tariffs instituted by President Donald Trump will depend on the tariffs' ultimate level and staying power. The anticipated level of tariffs has subsided since April, Powell said. Tariffs' impact on inflation may be short-lived, but the Fed chair indicated he hadn't ruled out a more persistent drag. To that end, he didn't commit to a timeline to reduce interest rates. 'We're going to be learning,' Powell said. 'We will get an inflation number for June. We'll learn something. Then we'll get it for July.' That wait-and-see approach has proved a persistent source of flak from Trump. In a post Tuesday on Truth Social, the president urged lawmakers to put the screws to Powell. "I hope Congress really works this very dumb, hardheaded person, over,' Trump wrote. 'We will be paying for his incompetence for many years to come." Trump has habitually taken to name-calling over Powell's reluctance to cut interest rates – a choice the Federal Open Market Committee reinforced last week. Powell, testifying Tuesday, said he would "live with the consequences" of Trump's epithets. "We're focused on one thing. That is, we want to deliver a good economy for the benefit of Americans and for the health of the American people," Powell told Rep. Josh Gottheimer, D-NJ on Tuesday. "That's it. Anything else is kind of a distraction." Other Republican lawmakers have taken a gentler approach than Trump, while still showing impatience toward Powell. 'Chairman Powell deserves credit for navigating some of the toughest terrain in modern history,' Rep. Dan Meuser, R-PA, posted on X. 'But with inflation cooling and a strong labor market, the upside of lower rates is becoming hard to miss.' James Egelhof, chief U.S. economist at BNP Paribas, has said Powell 'seems to see little urgency to adopt a strong view on the likely course of inflation, and he seems to see a lot of risk to making the wrong assessment.' Recommended Reading 'Fallen off a cliff': 3 ways Travis Hill wants to boost de novos

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store