The nation’s largest retailer is broadening its rapid delivery options by incorporating Subway restaurant meals into its mobile app service, as competition intensifies in the online shopping marketplace.
On Thursday, Walmart announced plans to roll out quick delivery for Subway food to roughly 1,400 locations before summer ends. The service is currently operating in select states and represents the retailer’s effort to capitalize on its biggest in-store restaurant partnership.
This move could signal broader ambitions for the company’s delivery strategy.
“Subway is a great starting point … but naturally for us, we want to make sure that any in-tenant location for our customers has the ability to have delivery via express,” said Tracy Poulliot, Walmart’s executive vice president of U.S. e-commerce and marketing, speaking Thursday during the company’s annual Associates Week event.
The Arkansas-based company finds itself in intense rivalry with Amazon as both companies vie for control of the delivery market. Walmart has been experimenting with drone deliveries and artificial intelligence improvements for inventory management while pursuing more affluent shoppers.
Using its network of more than 4,600 locations to handle online orders, Walmart extended its half-hour delivery service for groceries and various products to approximately 33 cities this year.
Company leadership reported in May that this rapid delivery option represents their fastest-growing service as shoppers increasingly prioritize convenience. Sales through store-based delivery have more than doubled in the past two years, according to Walmart CFO John David Rainey’s May presentation to Wall Street analysts.
This development occurs as the U.S. economy becomes increasingly divided, with lower-income families – traditionally Walmart’s core customers – reducing their overall spending.
Subway restaurants have operated inside Walmart supercenters since 2004. Other fast food brands including Taco Bell, McDonald’s and Wendy’s also maintain locations within Walmart stores, alongside regional chains like Auntie Anne’s.
