1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar

Walmart Canada scraps online pickup fee in latest shot across grocery bow

DAN HEALING, THE CANADIAN PRESS | posted Wednesday, Aug 2nd, 2017

AppleMark
A sign at a Laval, Que., Walmart store is shown on Tuesday, May 3, 2016. Walmart Canada is eliminating the pickup fee from its online grocery service as it braces for increasing competition in a business where profit margins are already razor thin. THE CANADIAN PRESS/Ryan Remiorz
Walmart Canada is eliminating the pickup fee from its online grocery service as it braces for increasing competition in a business where profit margins are already razor thin.

The retail giant said Tuesday it is cancelling the $2.97 charge for customers who order groceries online and pick them up in stores.

Although the fee was modest, the company’s internal studies indicated it was a barrier preventing some people from using their online grocery pickup service, said Daryl Porter, vice-president of online grocery for Walmart Canada.

“Even though it’s a small dollar amount, it means something,” Porter said.

“We want to remove that fee and give people a better chance to try it.”

The service launched in Ottawa in July 2015, about a year after Loblaw rolled out a similar program in the Toronto area.

Walmart Canada has since expanded it to the Greater Toronto Area, Calgary and Edmonton, and Porter said there are plans to bring it to a fifth market that will be unveiled in about a month.

The announcement Tuesday comes against the backdrop of Amazon’s US$13.7-billion deal to buy Whole Foods, an acquisition that some industry observers say will upend the supermarket sector in North America.

“There is a lot of activity happening out there in the industry but this is something we wanted to do even before the Amazon announcement,” Porter said.

Walmart Canada introduced groceries in its stores in 2006 and they are now available in about three-quarters of its 411 stores.


Related stories:

Walmart removes baby onesie that raised ire of Indigenous activist

Amazon is buying Whole Foods in a $13.7B deal

A new platform for Whole Foods? How deal could upend grocery

Comments

  • No comments have been left yet, get the conversation started!

Leave a Comment Below

Sign in to comment.

All fields are required.

Want to embed media into your comment? Just paste in a URL in a separate paragraph to the page where you would normally view the media (like on YouTube) and it will automatically be embedded into your comment.