Walmart’s New GoLocal Delivery Service Solution Targets Outdoor Retailers Large and Small

Walmart

WMT
Inc. takes another page from Amazon

AMZN
playbook. The Bentonville, Ark.-based retail giant said today it is launching delivery as a service, a new revenue stream that will leverage the last mile capabilities of the largest retailer in the world.

Called Walmart GoLocal, the service extends Walmart’s expertise in delivering goods to customers of all business sizes. “In an age where customers expect fast and reliable service, it’s more important than ever for businesses to work with a service provider who understands the needs of a merchant,” said John Furner, President and CEO from Walmart US Management, adding, “Walmart has spent years developing and developing business capabilities that support our network of more than 4,700 stores and we look forward to helping other businesses access the same services. reliable, high quality and low cost.

The retailer markets its delivery platform, starting with delivery as a service, helping businesses of all sizes bring their products closer to the door of their customers. Walmart GoLocal is fast becoming a leading provider of white-label delivery services and is continuing the retailer’s strategy to create alternative revenue streams and profit pools.

White label delivery as a service offering enables businesses to grow using Walmart’s delivery capabilities and nationwide coverage at competitive prices. This includes delivering a range of assortments, including those with size and complex requirements, as well as the flexibility to meet varying deadlines. The company will also grow rapidly to offer additional innovative offers.

“We’ve worked hard to develop a reliable last mile delivery program for our customers,” said Tom Ward, senior vice president, last mile, Walmart US. “We are now excited to be able to use these capabilities to serve another set of customers – local traders. From delivering products from a local bakery to automotive supplies from a national retailer, we’ve designed Walmart GoLocal to be customizable for merchants of all sizes and categories so they can focus. on what they do best, leaving the speed and efficiency of delivery to us. “

“We are pleased with the initial momentum of Walmart GoLocal and have already established a number of contractual agreements with domestic and corporate retail customers and are currently accepting selected new merchant partners at www.walmart.com/GoLocal. Right now, Walmart GoLocal includes white label delivery on a range of items and plans to expand rapidly to provide additional innovative offerings, ”a Walmart spokesperson told me. “[Walmart GoLocal] is built on our existing delivery network and will grow as Walmart’s capabilities expand.

The appeal to small businesses is obvious. What is the attraction for large companies? “Walmart GoLocal’s strengths lie in our local footprint and our digital connection,” said the spokesperson. “We have almost 5,000 locations within 10 miles of 90% of the population. For this reason, Walmart GoLocal already has a strong presence in rural and suburban areas where delivery providers are not that dense. Our digital growth, physical scale and delivery platform will help businesses take advantage of our lower costs, coverage, capacity and capabilities. “

This activity is an important part of the company’s overall strategy, which includes diversifying its revenue sources and profit pools with initiatives such as Walmart Connect and Walmart Fulfillment Services. Its launch comes weeks after the retailer announced plans to start offering technologies and capabilities to help other businesses navigate their own digital transformation.

After successfully building, testing and scaling its proprietary technology and capabilities, Walmart said last month it was ready to share its tools with the rest of the world. The technology and efficiency that has fueled Walmart’s growth in recent years, such as online shopping, in-store pickup and mobile check-in, will be available to small and medium retailers.

As part of this effort, Walmart announced a strategic partnership with Adobe to integrate Walmart’s Marketplace, online and in-store fulfillment and pickup technologies with Adobe Commerce.

ADBE
.

Through the Adobe Commerce platform, retailers and brands will be able to use Walmart’s unique cloud services to provide seamless pickup and delivery to their customers. Businesses will be able to reach new consumers in Walmart’s rapidly growing marketplace, where they can leverage Walmart’s fulfillment services to deliver 2-day nationwide shipping, while improving customer experience and operating more efficiently.

Before bringing the capabilities to market, Walmart wanted to test them and develop the scale. The retailer has been using some of them – including buying online and picking up in-store – for a decade. Walmart has also established its own delivery capabilities. As in-store pickup and other omni experiences become more popular with consumers, Walmart is offering to help other retailers and make a profit.

“Walmart’s GoLocal launch signals the next phase of its platform monetization push, so you can tell Walmart is taking an Amazon page from that perspective,” said Carol Spieckerman, president of Spieckerman Retail. “Last month, Walmart announced that it would bring cloud-based fulfillment capabilities to other retailers through its partnership with Adobe.

“Clearly, Walmart is committed to realizing a return on its significant investment in clicks to bricks,” Spieckerman said. “Walmart has obviously also given some thought to potential competition concerns by stating that GoLocal would be a ‘white label’ solution. Like Amazon, Walmart is willing to move away from brand association to accelerate integration and evolve solutions. I expect a series of similar launches to follow as Walmart harnesses the power of its platform and competing retailers look to improve their last mile capabilities. “