Walmart is looking at delivering groceries right into your fridge says Walmart Ecommerce President and CEO Mark Lore. And the step after that Lore says is delivery without even ordering, presumably using IoT technology to keep track of your refrigerator inventory.
Mark Lore, President & CEO of Walmart U.S. E-Commerce and Founder and CEO of Jet.com discussed the future of ecommerce on CNBC’s Mad Money:
Our Stores are Hybrid Warehouses
This is very exciting and this is one of the reasons why I was so excited to come to Walmart. There are 4,700 stores within 10 miles of 90 percent of the population, fresh and frozen and every one of these stores just about, and we’re doing pickup free pickup on groceries in 2,100 stores and started rolling out same-day delivery as well. We should have 40 percent of the population covered by the end of this year and 60 percent of the population covered by the end of next year.
Our stores are hybrid warehouses. But what’s really interesting is that we’re moving stuff in full truckload quantities. If you think about it, these stores that are doubling as warehouses are already profitable before the first pick. So we have a lot of like good turning inventory and the food is fresh.
Stores Are a Huge Advantage with Same-Day Delivery
We’re charging for delivery and customers are paying for it so that’s sort of a wash. We’re picking product in the stores that already have a really good sort of marginal profit because the stores are already profitable and our fixed overhead is covered.
I think this is a big advantage (over Amazon) and one of the reasons why I’m so excited to be at Walmart. Stores give Walmart a huge advantage in this sort of like Omni approach to retail.
Walmart Planning Delivery Right Into Your Fridge
Think about the next level from that, delivery right into the fridge. Basically a one-time code, they come in with the camera on their chest, you can watch it on your iPhone and see them come in and put it in your fridge and leave. This will build confidence and trust in these Walmart associates doing the delivery. Imagine going to work and coming home and there’s the stuff in your fridge already. That’s the next step.
Take it a step further, not even having to order it. How about just being able to keep you in stock on everything you need and just not even having to think about it.
