By Jamie Barrie W almart is now offering meal kits and simpler “one-step meals” in more than 250 stores and announced this month that it expects to roll out this service to 2,000 stores before the end of this year. This strategy comes as traditional grocers and big-box retailers are moving more aggressively into the meal-kit industry, in hopes of reaching cus- tomers at touchpoints even beyond their store walls. With this announcement Walmart goes after customers of stand-alone meal kit providers like Blue Apron and Hellofresh, which have no brick-and- mortar partner to help alleviate the cost and complex delivery process associated with meal kits. Also, companies like Blue Apron and Hellofresh, require subscriptions, since frequent purchases are needed to manage their business model, they can struggle to keep the attention of their subscribers. Walmart says that its service will not require a subscription, plus given the other category shopping options for it customers will give them the upper hand on customer engagement.
Walmart’s meal kits will serve two people and range in price from $8 to $15 and will also be available at Walmart’s online grocery pickup.
This move by Walmart is part of its battle with Amazon for customers in the food delivery sector, as Amazon announced that it will start delivering groceries from its recently acquired Whole Foods division through its two-hour Prime Now delivery service, looking to one up Walmart and go after marketing share.
So, I guess the gloves are off and the aprons are on for Walmart and Amazon and we are guessing that things are going to get messy in the kitchen, good thing is, its not your kitchen.
SPOTLIGHT ON BUSINESS MAGAZINE • MARCH 2018
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