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Industry News

Wal-Mart grapples with ‘last mile’ delivery challenge

July 30, 2018

The “last mile” is still the most challenging when it comes to home delivery of merchandise ordered online.

Walmart continues to grapple with the issue, having abandoned a pilot program in January in which store employees in Arkansas and New Jersey delivered packages on their way home after completing their shifts, reports CNBC. The company also ended partnerships with Uber and Lyft to deliver people and packages together, according to Reuters.

But it is well worth Walmart’s efforts to solve the problem — the retailer has found that people who shop both in-store and online spend nearly twice the amount of those who stick to just one of the two channels. Consequently, Walmart is now testing a service whereby four employees at a store in Georgia are delivering groceries and food-related products, such as plates, Reuters reports. Walmart is trying out several methods of delivery and is encouraged by what is happening with that store, a Walmart spokeswoman told Reuters.

Walmart would appear to be in a good position to crack the last-mile conundrum: The retailer has 4,700 U.S. stores within 10 miles of 90 percent of the country’s population. The company has set a goal of being able to deliver groceries to 40 percent of households by year-end.

By Edmund Mander

Director, Editor-In-Chief/SCT

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