Walmart Fires Back at Amazon Following 1-Day Delivery Announcement
Shares of Walmart (WMT) were showing signs of recovery Monday after the company fired back at rival Amazon.com (AMZN) about the giant online retailer’s plans to launch one-day delivery for its Prime members.
Walmart and Target (TGT) fell sharply last week following Amazon’s announcement. Walmart, apparently, isn’t taking the threat lying down.
One-day free shipping…without a membership fee. Now THAT would be groundbreaking. Stay tuned.
— Walmart (@Walmart) April 26, 2019
Walmart shares are even Monday.
Walmart did not return a request for comment on its plans in time for publications.
Shares of Walmart dipped 3% Friday while Target shares declined 6.4% during the day. Walmart regained some by the close of trading, ending down about 1.9% to $101.53. Target closed down 5.7% to end at $77.12.
Amazon said that it has been testing one-day delivery for certain products in some areas around the country. It said that it will build fulfillment centers across the country to facilitate its ambitious delivery goals.
There are currently 10 fulfillment centers under development this year.
The one-day service will be supported by Amazon’s own delivery channels as well as partners like UPS (UPS) , FedEx (FDX) and the United State Postal Service.
Walmart currently offers two-day shipping on qualified items for free. It also debuted same-day grocery delivery in 2018 with some orders being delivered in as little as three hours.
Target also currently offers 2-day shipping for certain items in certain areas. It also has express shipping options that can have items delivered within one business day after they have been shipped to Target stores.