Walmart: Store-fulfilled deliveries getting faster

Walmart continues to significantly accelerate its delivery capabilities, with store-fulfilled logistics playing a central role in its fast-growing e-commerce performance. In the first quarter, more than 36% of store-originated deliveries were completed in three hours or less, a performance level that Walmart says is directly boosting customer engagement. 
According to EVP and CFO John David Rainey, faster delivery speeds are becoming a core driver of consumer behavior. He also noted that ultra-fast options, including sub-hour deliveries, are currently the fastest-growing segment of Walmart’s delivery ecosystem. 
Walmart’s U.S. operations show a strong shift toward rapid fulfillment models. President and CEO John Furner told analysts during the May 21 earnings call that store-fulfilled delivery sales have more than doubled over the past two years, as the company continues to prioritize speed as a competitive lever against rivals such as Amazon. 
Rainey highlighted that Walmart can now reach approximately 60% of the U.S. population within 30 minutes or less, a capability built on the integration of stores, distribution centers, fulfillment hubs, and last-mile networks. He added that customer satisfaction with Walmart’s delivery services has reached record levels. 
Beyond speed, Walmart is also seeing a direct link between rapid delivery and customer frequency. “Fast fuels frequency,” Rainey explained, noting that customers engage more frequently when deliveries meet or exceed expectations. 
The company’s fast-delivery segment is expanding strongly, with sales growing more than 50% year over year, according to Walmart U.S. President and CEO David Guggina. 
Walmart Fulfillment Services is also contributing to this shift, with same-day and next-day shipped units increasing by nearly 150% in the first quarter. 
Drone delivery is emerging as a key pillar of Walmart’s logistics strategy. The company reached its one-millionth drone delivery milestone during the quarter, with over 40% of those deliveries completed in the most recent reporting period, Guggina said. 
These drone deliveries are notably fast, with orders arriving at customers’ homes in just minutes on average. 
Walmart’s drone program is currently active across 66 locations in four U.S. states—Texas, Georgia, North Carolina, and Arkansas. As for the future, the retailer is looking to dramatically grow its Wing network to more than 270 store locations by 2027.