Walmart in the US to begin delivering Dunkin’ products
American retailer Walmart will begin delivering products from the Dunkin’ chain through its Walmart Restaurant Delivery service. Initially, the service will cover Dunkin’ locations in Walmart stores, and over the next year the company plans to expand it to most of the approximately 10,000 chain locations in the United States. This was reported by CNBC Top News.
Delivery together with Walmart products
Walmart said that combining restaurant delivery with the retailer’s assortment should provide customers with added convenience: when ordering coffee or doughnuts, they will be able to purchase everyday necessities at the same time. The Subway chain, whose restaurants are located inside the company’s stores, became Walmart Restaurant Delivery’s first partner.
Walmart Senior Vice President Greg Cathey said that after Subway delivery was launched, nearly 65% of restaurant orders were delivered together with Walmart products that customers needed urgently. According to him, every fifth combined Subway and Walmart order was a customer’s first use of Express Delivery, while nearly 30% of such customers returned to the service within 30 days.
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Competition with food delivery services
Experts interviewed by CNBC believe that expanding delivery beyond Walmart stores increases the retailer’s competition with DoorDash and Uber Eats. Hongseok Jang, an associate professor of management science at Tulane University, noted that Walmart’s advantage is its broad store network and existing logistics: according to him, 90% of Americans live within 10 miles of one of the company’s stores.
During the presentation of second-quarter results, Walmart Chief Financial Officer John David Rainey said that customers seek value, convenience, and fast delivery. The company reported that fast delivery in under 30 minutes in the United States increased by 48% during the quarter. At the same time, specialists emphasize that for the new service to be effective, Walmart needs to ensure high order density, optimal routes, and rapid delivery of temperature-sensitive products.