Walmart Inc (NYSE:WMT) is using its vast shipping network in the US to deliver goods free cost on the same day. It maintains over 150 distribution centers in the US. The company also maintains 4,789 stores across the nation in 49 states. Around 90% of the population in the US lives within 10 miles of Walmart’s store. The market capitalization of Walmart is $339.54 billion.
Shipping costs are at a minimum
Nine out of the ten Americans order items from a local Walmart store, which is in 10 miles range. It helps Walmart to maintain low shipping costs and beat Amazon, which is bleeding because of high shipping costs. Amazon spends $10.59 on shipping to fulfill an online order, whereas it receives $8.32 for one-day shipping. Therefore, Amazon is losing billions of dollars on shipping when compared to Walmart.
Most Americans opt for free shipping. Walmart is cashing on this opportunity with its vast distribution centers and physical stores when compared to Amazon. The shipping costs for Amazon are growing year on year. In this quarter alone, it will spend $11 billion for shipping. Amazon has just 110 warehouses nationwide when compared to 1,600 stores of Walmart.
Walmart opens 134 stores in Mexico
Walmart inaugurated 134 stores in Mexico in 2019. It is the biggest expansion when compared to 2013. The company operates a total of 3,407 stores in Mexico. It has increased the presence in Mexico by 5%. Walmart holds more stores in Mexico, the biggest after the US. An equity analyst at Banorte, Valentin Mendoza, said Walmart expects to generate more sales from its newly launched stores in Mexico.
Walmart, the Big-box retailer, is achieving success in online sales and physical stores. It is witnessing considerable growth in in-store sales. The company is also posting record sales online because of grocery sales.
Several physical retailers are competing with e-commerce giant – Amazon by introducing online sales and free shipping options. Walmart has made the life of Amazon more miserable by introducing a grocery picking robot. Alphabot offers considerable savings to the retailer because it picks up the items, packs them, and ships faster.