Wal-Mart Same-Day Delivery Expands, Pressuring Amazon

Investor's Business Daily

Wal-Mart (WMT) expanded its same-day delivery of electronics, toys and other online purchases to Minneapolis Tuesday and will add San Jose/San Francisco later this month or in early November. Earlier this month, the "Wal-Mart To Go" services started in Northern Virginia and Philadelphia.

Shares were down nearly 1% in mid-day trade.

Online shopping is an attractive option during the upcoming holiday season, allowing shoppers to avoid the crowds and spend more time with their family.

Amazon (AMZN) dominates the online market and offers same day delivery of purchases in Boston, Chicago, New York and other cities.

Amazon shares were down more than 2%.

In Wal-Mart's test markets, shoppers can pay a $10 flat rate for same-day delivery of products carried at the local store. Customers must sign up for the service and place their orders by noon. The purchases are delivered by United Parcel Service (UPS).

In the San Jose/San Francisco market, Wal-Mart has its own delivery trucks from an online grocery delivery service that started in 2010. Wal-Mart already offers other services to make online shopping easier for online shoppers. Its "Site to Store" option allows customers to pick up items ordered online at their local store and "Pay with Cash" lets customers order items online and pay for them with cash at their local store.

In August, eBay (EBAY) debuted its "eBay Now" mobile application in San Francisco that allows users to order items from retailers like Target (TGT), Best Buy (BBY), Macy's (NYSE:M) and Walgreen (WAG) on eBay's marketplace and have them delivered the same day.

EBay shares fell nearly 3%.

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