Walmart Makes the Next Move to Match Delivery with Amazon

Why It Matters

The initiative tightens Walmart’s last‑mile advantage, challenging Amazon’s rapid‑delivery lead and reshaping the competitive landscape for omnichannel retail. Faster, in‑store staging could lower costs and boost profit margins across the sector.

Key Takeaways

• Walmart pilots back‑room shelf staging for same‑day third‑party delivery.
• Program launched in Dallas stores, targeting faster order fulfillment.
• E‑commerce turned profitable in April 2025, driven by store‑based deliveries.
• Walmart now reaches 95% of U.S. households within three hours.
• Amazon offers one‑hour delivery in hundreds of cities, intensifying competition.

Pulse Analysis

Walmart’s back‑room staging pilot reflects a strategic shift toward leveraging existing store footprints for last‑mile logistics. By converting retail space into micro‑fulfillment hubs, the retailer can shave minutes off delivery windows without the capital outlay of new warehouses. This model aligns with broader industry trends where retailers repurpose brick‑and‑mortar assets to meet rising consumer expectations for instant gratification, especially in grocery and essential goods categories.

Beyond the pilot, Walmart’s investment in next‑generation fulfillment centers—spanning Illinois, Indiana, Pennsylvania, Texas, and soon California—illustrates a commitment to automation and scale. These 1.1‑million‑square‑foot facilities employ robotics and AI to streamline order picking, enabling same‑day and next‑day services at lower unit costs. The profitability achieved in April 2025 signals that these efficiencies are translating into tangible financial gains, positioning Walmart to capture a larger share of the projected 60% e‑commerce‑driven sales growth over the next five years.

Amazon’s aggressive rollout of one‑hour and three‑hour delivery windows raises the competitive bar, forcing rivals to accelerate their own fulfillment innovations. While Amazon leverages its vast network of sortation centers and third‑party couriers, Walmart’s hybrid approach—combining in‑store staging with automated hubs—offers a differentiated cost structure. For consumers, the battle translates into more choices and faster delivery options, but for the industry it underscores the importance of integrated, technology‑driven supply chains to sustain margin pressure and market relevance.