Walmart enjoys bigger slice of food sales

Gladys Abbott
August 21, 2017

Wal-Mart picked Orlando and Dallas for the new program after testing grocery delivery past year with Uber.

The expansion to Dallas and Orlando, announced Monday, marks the latest steps that Walmart is taking to offer more options for online grocery shoppers looking for convenience amid increasing competition from online leader (AMZN). Walmart also started a pilot delivery program in NY.

Wal-Mart had previously tested the grocery delivery in Tampa and Phoenix areas.

In a blog posted on the Walmart website today (21 August), Mike Turner, Vice President of Ecommerce Operations, commented: "We've been testing delivery in a number of ways for a while now in key markets across the country". Food price deflation has been a leading cause in slowed revenues for companies like Target, but Wal Mart has reported that their sales growth in grocery has been the best in 5 years with 56% of their sales come from grocery.

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Walmart operates its own grocery delivery system in San Jose, California, and Denver.

The delivery is only available for addresses near the participating Wal-Mart stores. CFO Brett Biggs told CNBC last week that the retailer is pleased with what it's been doing in food, and "online grocery continues to grow rapidly".

Competitors such as Amazon and Whole Foods have already bolstered the grocery business.

Later this week, shareholders of Whole Foods are set to vote on Amazon's takeover bid.

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