It is anticipated that major chains operating online ordering with omnichannel distribution will be stressed by an influx of orders in December. Accordingly Walmart will introduce fulfillment from stores that operate a same-day delivery service. The program will involve 2,800 out of the 4,500 Walmart stores in the U.S. According to Tom Wood, Senior Vice-president of Customer Product and Store Fulfillment, Walmart can optimize the use of inventory and assets and potentially save on packaging and handling by adopting an ex-store strategy.
It is significant that Target reported a high proportion of online sales completed by stores through either customer pick-up or by delivery using Shipt. Evidentially Walmart and possibly other chains have recognized the potential efficiency and economy from fulfillment using existing local stores. The concentration of stores in areas of high population density will serve as a competitive advantage against Amazon. This company is using some Whole Foods locations as dark stores in urban areas to deliver groceries. Ocado of the UK and other companies facilitating retail logistics in the EU and Israel have developed technology to be retrofitted to existing supermarkets and hypermarkets. These modifications and installations provide expedited customer service at a lower cost than a remote dedicated fulfillment center.