Walmart (NYSE:WMT) have seen their digital sales channels grow tremendously since the start of the coronavirus pandemic. With the strong growth in e-commerce sales, both big-box retailers see an opportunity to take a page out of
Amazon s (NASDAQ:AMZN) playbook and spend more on bringing package delivery in-house.
Amazon says it delivers the majority of its U.S. orders itself, but third parties still handle most of its competitors orders. Target and Walmart are investing to change that.
Image source: Getty Images.
Where Target and Walmart are investing
Target s investing across its entire supply chain. During its first-quarter earnings call, management announced plans for two more regional distribution centers in addition to the two distribution centers it expects to open this year. Once these buildings are operating at scale, they ll meaningfully shorten lead times to nearby stores, improving in-stock levels, while reducing the need for safety stock in those locations, COO
Target and Walmart s Next Step to Take on Amazon
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