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Insights for the Food and Grocery Industry

Closing of Walmart pickup-and-delivery stores: What the future holds for this concept

Walmart is closing its two pickup-and-delivery-only concept stores in Lincolnwood, Illinois, and Bentonville, Arkansas. Customers placed grocery orders using Walmart’s website or mobile app and came to a designated canopy bay in the parking lot at the time set to pick up their groceries. A Walmart spokesperson, Felicia McCranie, stated that the decision to close the Lincolnwood store and two others in the Chicagoland region was taken following a “thorough evaluation process” that determined they had not met the company’s objectives. However, Walmart’s move is unlikely to deter startups from taking a similar strategy. After obtaining $10.1 million in early investment, Addie’s just opened its first pickup-only grocery concept shop in Massachusetts. The firm sees a predicted increase in online ordering, unprofitable delivery models, and the shortcomings of current pickup models as advantages as it enters the market.

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