Source: RetailNet Group

Walmart has officially opened its first standalone drive format called, Walmart Pickup Grocery. This new format is currently being trialed in Bentonville, Arkansas and allows shoppers to place orders online and pick up their orders at a standalone drive-through without exiting their vehicles. In recent weeks the format has been tested by store employees, but now registered shoppers can take advantage of the new format.

Walmart Pickup Grocery Protocol:

• Shoppers register online with email addresses
• Walmart extends invitations to shoppers in the appropriate zip code
  • Shoppers enter email, password, home address and phone number to complete registration
• Registered shoppers order from the online site
  • Each item has an option for substitution in case the desired item is not available
• Shoppers select a pickup time ranging from two hours to three weeks in the future
• Shopper drives to a kiosk station at scheduled time and is directed to one of 19 waiting lanes
• Attendant delivers order directly to vehicle and alerts shopper of any substitutions
  • Customer given opportunity to review any substitutions or fresh products for quality
  • If substitution is larger, Walmart will cover the price difference

Information from the opening:

• Just under 10,000 SKUs available
• SKUs include grocery and consumable items, including fresh dairy, meat, and produce
• 15,000 sq ft facility that will carry 3-5 days of inventory
• Can pick up order anytime between 7am and 10pm
• All orders paid for online prior to pickup – Walmart reports that this test upholds its offer of everyday low prices
• Currently offering complimentary products (for example dog treats) to users who provide feedback on service
• Small customer service area on site, but a call center will respond to most issues with the service
• Less than 10 minutes required to pickup groceries

Walmart’s drive model is based on the popular drive format in Europe, particularly in France and the UK. ASDA, Walmart’s UK banner, opened its first drive format store last year and the chief development officer at Walmart US who helped to develop Walmart Pickup Grocery has previously worked at the UK chain. Walmart is experimenting to see whether this model could be as popular in the US as it is in Europe.

Walmart is testing this new model in order to satisfy consumers who are looking for new, convenient ways to shop. Walmart previously trialed full basket grocery click-and-collect services attached to stores in Denver in addition to grocery delivery in San Jose & San Francisco. Due to Walmart’s extremely price conscious shoppers, more than 50% of Walmart.com orders are picked up in store as shoppers are willing to sacrifice convenience in order to save on delivery fees. This new drive format caters precisely to those shoppers. At the grand opening, the manager of the drive location focused in particular on new mothers who did not want to go through the hassle of bringing their young children grocery shopping but also did not want to pay extra delivery fees. As consumers are increasingly pressed for time and expect fulfillment through digital platforms, the drive format provides an outlet that is both convenient and affordable.

Earlier this month RNG received an exclusive look at the location prior to its opening to the public – View slides

RNG Resources: The Drive Format

• The Retail Drive Concept
• The Drive Format: A New Growth Platform That Will Transform Grocery Retailing in North America