Walmart is accelerating its push into same-day delivery by leveraging its nationwide network of physical stores as local fulfillment centers, directly challenging Amazon’s dominance in rapid online order fulfillment. The retail giant announced the expansion of its delivery capabilities in early 2024, aiming to reach more than 90% of the U.S. Population with orders delivered within hours of purchase.
By converting underutilized space in over 4,700 stores into micro-fulfillment hubs, Walmart says it can process and ship grocery and general merchandise orders faster than relying solely on centralized warehouses. This strategy builds on years of investment in supply chain technology and partnerships with third-party delivery providers like DoorDash and Uber.
The move comes as consumer expectations for speed continue to rise, particularly in urban and suburban markets where Amazon has long held an edge through its Prime service and extensive logistics infrastructure. Walmart’s approach differs by using existing retail footprints rather than building latest distribution centers, potentially reducing overhead and increasing geographic coverage.
How Store-Based Fulfillment Works
Walmart’s system routes online orders to the nearest store with available inventory, where employees pick, pack, and prepare items for handoff to delivery drivers. According to the company, over 75% of its U.S. Stores now support this model, enabling same-day delivery in most major metropolitan areas.
Internal data cited by Walmart shows that orders fulfilled from stores are delivered up to 40% faster than those shipped from traditional distribution centers, particularly for perishable goods like groceries. The company reported in its 2023 annual report that e-commerce sales grew by 17% year-over-year, with pickup and delivery services accounting for more than half of that increase.
To scale the operation, Walmart has invested in automated sorting systems and AI-driven inventory forecasting tools designed to minimize stockouts and optimize routing. These technologies are being tested in select markets before broader rollout.
Competing With Amazon’s Logistics Network
Amazon has spent over $100 billion since 2010 on its logistics network, including air cargo, last-mile delivery vans, and robotic fulfillment centers. The company offers same-day delivery in over 80 U.S. Metro areas to Prime members, a benchmark Walmart is now targeting.
However, Walmart argues its physical store advantage provides a unique edge: nearly 90% of Americans live within 10 miles of a Walmart location, according to a 2022 analysis by the company. This proximity allows for shorter delivery legs and greater flexibility during peak demand periods.
Industry analysts note that although Amazon leads in delivery speed for non-grocery items, Walmart’s strength in fresh food and household essentials gives it leverage in categories where immediacy matters most. A 2023 study by Morgan Stanley found that 60% of consumers prioritize speed for grocery orders, compared to 45% for electronics or apparel.
Investment and Partnerships Driving Expansion
Walmart has committed more than $1 billion annually to supply chain and automation initiatives, including the expansion of its Walmart Fulfillment Services (WFS) platform, which allows third-party sellers to use its logistics network. The company also continues to grow its InHome delivery service, where employees enter customers’ homes to place groceries directly in refrigerators — a feature now available in over 30 metro areas.
Partnerships with gig economy platforms remain critical to last-mile execution. In 2023, Walmart extended its agreement with DoorDash to cover delivery from nearly all U.S. Stores, while maintaining similar arrangements with Uber and local courier services in select regions.
These collaborations help Walmart avoid the fixed costs of maintaining a large proprietary delivery fleet while scaling capacity during holidays or weather-related spikes in demand.
Challenges and Limitations
Despite progress, Walmart faces obstacles in matching Amazon’s consistency across all product categories. Inventory accuracy remains a challenge in older stores, and not all locations have the space or staffing to support high-volume fulfillment without disrupting in-store shopping.
Labor costs and employee training also present ongoing hurdles. Walmart has increased wages for fulfillment associates in competitive markets, but unionization efforts in several states have raised questions about long-term workforce stability.
same-day delivery is not yet available in rural areas where store density is low and delivery distances are prohibitive. Walmart acknowledges these gaps and says it is exploring alternative models, including drone delivery and regional hub partnerships, to extend reach.
As e-commerce continues to grow, the competition between Walmart and Amazon is shifting from price alone to speed, reliability, and convenience. Both companies are investing heavily in automation and AI to gain an edge, but Walmart’s store-based model may offer a scalable path forward — one that turns its greatest physical asset into a digital advantage.
For now, the focus remains on refining execution in existing markets before expanding further. Walmart has not announced a timeline for nationwide same-day delivery coverage, but officials say progress will be measured in customer satisfaction scores and delivery speed metrics released quarterly.
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