Walmart opens a new grocery-focused mini-supermarket in Shenzhen stocking over 8,000 products it delivers very quickly.
Being successful in China requires teaming up with a Chinese company, and that’s exactly what Walmart decided to do back in 2016 through a partnership with JD.com. Walmart then offered JD’s electronics products in its Chinese stores, and JD sold Walmart’s US brands online. Now that partnership has allowed a new Walmart grocery store to be opened with extremely fast home deliveries available.
As Reuters reports, the new joint venture sees Walmart’s expertise in selling groceries combined with JD.com’s experience of selling online in China. The end result is a small supermarket that stocks over 8,000 grocery products, embraces tech, and can delivery 90 percent of the items sold at the store in just 30 minutes (if you live within a 2km radius from the store).
The new store is all about convenience as well as offering the same experience off and online. As well as that 30 minute delivery promise, visiting the physical store includes the option to bypass the checkout through the use of WeChat to pay. Think of it like Amazon Go, only utilizing China’s very popular messaging and social network app every smartphone has access to.
The first of these stores is located in the southern city of Shenzhen, and while the 2km range for quick deliveries may seem limiting, it will only be so until enough of these small supermarkets open to remove the problem. Even then, Walmart is sure to open some near business districts where office workers can place orders and have them quickly delivered to work.
Meanwhile, Walmart is slowly improving the grocery delivery options for customers in the US. Earlier this month the company announced it was bringing same-day online grocery deliveries to 100 cities. By the time we reach the 2020s, Walmart is also planning to offer virtual reality shopping. I wouldn’t bet against Walmart’s mini-supermarkets in China getting that option first.