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Walmart tests no-limit online grocery delivery service

Subscription-based Delivery Unlimited would compete with Prime Now, Instacart, Shipt

Russell Redman

June 17, 2019

3 Min Read
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Walmart

Walmart has quietly introduced a subscription-based, unlimited-delivery option for its online grocery service.

Dubbed “Delivery Unlimited,” the new service enables Walmart Grocery customers to pay for same-day deliveries of online purchases on a yearly or monthly basis instead of per order. There’s no limit on deliveries for orders of $30 or more.

Subscriptions cost $98 for the annual plan and $12.95 for the monthly plan, compared with a $9.95 or less same-day delivery fee for each order, according to published reports.

Walmart hasn’t officially announced Delivery Unlimited but has posted an FAQ page for the service. The Bentonville, Ark.-based retailer is offering customers a 15-day free trial.

Currently, Delivery Unlimited is being piloted in Houston, Miami, Salt Lake City and Tampa, Fla., according to a Walmart spokeswoman.

“We’re always looking for new ways to serve our customers and are constantly testing new concepts. We know they love Grocery Pickup and Delivery, and we’re exploring options for a program that allows customers to pay a fee for an unlimited number of grocery deliveries,” spokeswoman Molly Blakeman said in a statement.

“It's worth noting that there will always be an option to place an order without paying a monthly or annual fee,” she added.

Related:Walmart brings grocery delivery inside shoppers’ homes

With Delivery Unlimited, Walmart is taking aim at subscription-based online grocery delivery services offered by Instacart, Target and Amazon.

Late last year, Instacart lowered its annual subscription to $99 from $149 for an Instacart Express membership, which offers unlimited grocery deliveries on orders of $35 or more. There’s also a $9.99 monthly option. Target’s Shipt charges $99 for a yearly membership and $14 per month for unlimited deliveries, with a $35 order minimum. Last week, Target said it has integrated Shipt into Target.com, meaning that customers no longer needed a Shipt account for same-day delivery. The company began offering a free four-week trial of Shipt and the option to pay a $9.99 fee for each delivery order on Target.com without having to enroll in an annual membership.

Last May, Amazon raised the price of a Prime membership — which provides access to Prime Now same-day grocery delivery (including from Whole Foods Market) — to $119 from $99. There’s also a $12.99 monthly plan. Customers can get unlimited grocery deliveries on orders of $35 or more under. Members of Prime, however, also receive a wide range of other benefits, such as fast shipping options, free streaming media (including movies, television shows and music), free e-books, and exclusive deals and pricing (including in Whole Foods stores).

Related:Grocery boosts Walmart in first quarter

Walmart’s pilot of Delivery Unlimited reflects accelerated efforts to extend its online grocery reach as well as evolve its service. Just over a week ago, the company unveiled Walmart InHome Delivery, a new service slated to launch this fall in which associates will deliver groceries right to a customer’s refrigerator. Plans call for InHome Delivery to initially roll out to more than 1 million customers in Kansas City, Mo.; Pittsburgh; and Vero Beach, Fla.

During fiscal 2019, Walmart expanded same-day grocery delivery to approximately 800 stores and free grocery pickup to more than 2,100 stores in the United States. That jumped to nearly 1,000 stores for delivery and 2,450 stores for pickup by mid-May. By the end of this year, Walmart expects to have same-day grocery delivery available at 1,600 stores and free grocery pickup at 3,100 stores. The company said that will enlarge its online grocery coverage of the U.S. population to 50% for same-day delivery and almost 80% for pickup.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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