Walmart has just dropped a bomb in the retail market. Its new plan to make deliveries in less than three hours promises to change the dynamics of e-commerce across the United States.
Now, all eyes are on Sam's Club, its membership club subsidiary, which could follow the same path. If it does, the impact on Costco would be enormous.
This week, Walmart's CEO announced that by the end of 2025, 95% of Americans will be able to receive their orders in a maximum of three hours. The news was revealed in his annual letter to shareholders, accompanying the company's earnings report.
Sam's Club Could Follow the Same Path
The proposal not only directly challenges Amazon Prime but also opens the door to new opportunities for Sam's Club. The membership club, which belongs to Walmart, already has a solid network of more than 600 stores across the country. Implementing ultra-fast deliveries would be a natural step to consolidate its growth.
Sam's Club has already shown interest in technology. Its Scan & Go system allows customers to scan and pay for products directly from their mobile phones. Additionally, it is working on eliminating traditional checkouts to further streamline the shopping experience. All this facilitates the adoption of the express delivery model that Walmart is now pushing.
Meanwhile, Costco, its main competitor, keeps a more traditional approach. Although it offers home deliveries, it relies heavily on external services like Instacart. So far, it hasn't developed its own rapid delivery strategy. This difference could become crucial if Sam's Club moves first.
Walmart explained that its ultra-fast delivery plans are based on a strong investment in automation and technology. They are renovating their distribution centers, using intelligent storage systems, and applying artificial intelligence in their supply chain. All this infrastructure could also directly benefit Sam's Club if it decides to leverage it.
"We want our customers to decide how and when they receive their products," McMillon noted in his message. "Our mission is to be faster, more convenient, and always keep prices low."
Walmart and Sam's Club, Going After Costco
Although Sam's Club hasn't officially confirmed that it will adopt this model, the expectation is growing. Many experts believe the decision would be strategic. Offering deliveries in less than three hours could give it a definitive advantage over Costco.
For Sam's Club members, this would mean more flexibility. They could not only shop in-store or pick up their order but also receive it at home almost immediately. In a country where time is money, this improvement could change many purchasing decisions.
Retail in the United States is undergoing a rapid transformation. Walmart has already made its move. Now everyone is waiting to see if Sam's Club will also jump on the express delivery bandwagon.
If it does, Costco will have to move quickly. Or it could be left behind.