Online Groceries is Finally Upon Us – Wal-Mart Entering Space

October 26th, 2007 · No Comments

With the announcement that Wal-Mart (WMT) is about to enter the online grocery market, it looks like years after online grocery sales was expected to happen, it is now finally upon us.

Of course most of us know that Amazon.com (AMZN) has been doing this for about a year, and has recently started to offer perishable goods, along with non-perishable, in targeted neighborhoods in its home market of Seattle. It uses its own fleet of trucks when delivering perishable items.

What the entry of Wal-Mart does is create the type of competitive environment that will help the initiative to go forward, which should help the space to grow quicker.

While Amazon.com offers prices of about 30 percent below regular supermarket prices, Wal-Mart, as usual, will do them a little better, and start off 5 percent below Amazon’s prices. Competition is already starting to help the consumer. Amazon does offer free shipping on large orders.