Wal-Mart is planning to test an online grocery delivery system in California. This information came from a person who is involved with the company’s new project. The source of the information declined to give their name, as the plans are not yet final. The online grocery delivery service has been named “Project Titan.” However, it may or may not happen, as it has not yet been approved. If it goes forward, stores in the San Jose area will be the first to be serviced.
According to analyst Matt Nemer of Wells Fargo Bank, Wal-Mart needs to consider e-commerce more seriously as grocery delivery is effective and profitable, especially in urban markets. Also, Nemer added that Wal-Mart has been implementing grocery delivery in the United Kingdom, so the superstore chain definitely has experience in the area of grocery delivery.
Wal-Mart has started to focus on the online business because of the decline in sales of their stores in the United States. The decline is mostly due to the fact that they have been losing customers to rival discount chains like Target and the Dollar General. Wal-Mart is also introducing small express stores in an effort to lure customers away from the competition.
Ravi Jariwala, the spokesman for Wal-Mart in Arkansas, said that there have always been rumors about their business and they have taken it all without giving comments and reactions. Jariwala added that the company is always evaluating ways to determine where they will implement expansion programs that will best benefit their customers.
According to research, online grocery retail in the United States grew to 13 percent in 2010 and has been predicted to climb even more by the year 2015. This information is according to the Forrester Research Firm.
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