Wal-Mart Is Testing Dark Stores

Fast growth in e-commerce has Wal-Mart USA testing so-called dark stores to expedite fulfillment of online orders. These stores are not open to the public, even though they may look like your average shopping location. The first of such stores is being piloted in Dallas, Texas, with a second store planned for Bentonville, Arkansas.

Earlier this year, Wal-Mart finally achieved e-commerce profitability, with sales up 21%. Interestingly, e-commerce net delivery costs have declined as Wal-Mart ramps up last-mile deliveries, and asks customers to pay a fee for faster delivery services. Wal-Mart expects to soon be able to deliver goods to 95% of the US population in three hours or less, and impressive feat that highlights the omnipresence and retail power of the store.

Year-on-year, deliveries in under three hours grew by more than 91% in Q1, while both revenue and operating income grew by 2.5% to USD 165 billion and 4.3%, to USD 7 billion, respectively.