Wal-Mart expands online shopping offers

  • Associated Press
  • Friday, March 11, 2011 12:01am
  • Business

NEW YORK — Wal-Mart is expanding its program that lets shoppers pick up online orders at stores in an attempt to lure people who prefer the convenience of Web shopping but want same-day gratification.

Wal-Mart previously offered the service on about 2,000 items in 750 stores. Now it is expan

ding it to all stores and applying it to 40,000 items, including baby items, toys, electronics, video games and appliances. Groceries are not part of the program.

The world’s largest retailer will start rolling out the program to new stores at the end of the month and expects it to be available in all stores by June and on all 40,000 items by the fourth quarter.

The program lets shoppers skip that hassles and checkout lines in Wal-Mart’s 3,600-plus stores, said Steve Nave, senior vice president and general manager of Walmart.com. Shoppers also don’t have to wait several days for shipping.

Online orders are usually ready for pickup in about four hours. Orders placed after 6 p.m. are ready for pickup at 10 a.m. the next day. Customers can go to a dedicated counter in stores to pick up items.

Shoppers are increasingly turning online to buy goods. Total U.S. e-commerce spending excluding travel, rose 10 percent to $142.5 billion in 2010, according to research firm comScore. That outpaces total retail spending, which rose 3.7 percent to $2.37 trillion in 2010, according to the National Retail Federation.

Best Buy and Sears offer a similar service, and more retailers will probably follow as shopping habits evolve, said Morningstar retail analyst Peter Wahlstrom.

“It saves you time as you get to the store,” Wahlstrom said. “You can make the beeline directly to checkout and that creates efficiency on both ends,” for shoppers and retailers.

Wal-Mart does not break out online sales but says its online growth rate outpaces the total e-commerce growth rate by two to three times.

Amazon.com is by far the busiest e-commerce site, with more than double the monthly visitors of Walmart.com in 2010, according to Comscore. Wal-Mart.com is the third-busiest behind Apple.

While Wal-Mart benefited during the recession as shoppers hunted for bargains, it has missed out on the consumer spending comeback. Customer counts have declined due to tough competition from other online sites like Amazon.com and dollar stores that let shoppers make quick trips to buy necessities like milk and diapers.

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