So, how is Walmart able to offer these savings? The retailer says its passing along the savings it sees when it delivers items to its store rather than your house.
“We can remove the last mile delivery costs (that represent the lion’s share of the costs to ship products to customers’ homes) when we leverage our fleet of more than 6,700 trucks to deliver products directly from fulfillment centers to our 4,700 stores. This means, quite simply, it costs less for us to ship to stores,” according to Lore.
If you’d rather not leave your couch, remember that Walmart recently began offering free two-day shipping on purchases over $35—no membership required.
“We already offer great prices online. We do that every day,” Lore said. “Offering a discount on Pickup demonstrates how we can take that to the next level by operating more efficiently and removing costs from the system to give customers even more ways to save.”
Beyond the pickup discount, Walmart says it also plans to expand its online grocery pickup from 600 stores to 1,100 stores sometime this year.