Walmart opens new distribution center in fight against Amazon

Walmart opens new distribution center in fight against Amazon

Walmart has opened a new distribution center in Pennsylvania, which should help the retailer reach its goal of servicing 95 % of its online customers with two days of an online order.

Fight with Amazon

To reach that goal, it will open another three distribution centers this year, a huge step forward in its fight with its biggest competitor Amazon. The two-day delivery is not a surprising goal at all for the department store chain as that is exactly the same delivery time Amazon has for its Amazon Prime customers.

 

Walmart's new ShippingPass service is also remarkably similar to Amazon's Amazon Prime, as it offers a free 3-day delivery. The cost is a 50 dollar yearly subscription, half of what Amazon charges for Amazon Prime.

 

To help its eCommerce, Walmart is not only counting on its large distribution centers as it also have a number of smaller fulfillment centers and more than 80 stores that ship directly to the customer. Not only that, customers can also pick up their orders from any Walmart store.

 

Amazon's unexpectedly positive results have pushed it beyond Walmart's value on the stock market in the past quarter. Amazon is currently worth 264 billion dollars (240 billion euro), while Walmart is worth 234 billion dollars (215 billion euro).

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