Why Digital and Delivery Speed Could Be Walmart's Secret Weapon

In the race to get products to customers’ doorsteps, Walmart Inc.’s WMT strategy is clear — delivering faster and reaching more households than ever. The company is closing in on a milestone where 95% of the U.S. population will have access to delivery in three hours or less. This capability is scaling quickly, with the number of deliveries in less than three hours zooming 91% in the first quarter of fiscal 2026 for Walmart US.

Walmart’s store-fulfilled model allows orders to be picked, packed and shipped from locations near customers. This helps cut transportation costs and delivery times, while premium fees for expedited service enhance last-mile economics. The combination has helped Walmart achieve e-commerce profitability for the first time across both its U.S. and global operations.

International markets are also contributing to this push. In China and India, delivery times are being measured in minutes, reinforcing Walmart’s competitive position in densely populated, high-growth regions. Internationally, 45% of same or next-day deliveries now arrive in under three hours, underscoring the scalability of the approach.

This speed advantage not only drives sales but also strengthens Walmart’s broader omnichannel ecosystem, where physical stores and digital channels work in sync. The ability to rapidly fulfill orders is enhancing customer loyalty, boosting digital adoption, and fortifying Walmart’s role as both a convenience leader and an everyday low-price retailer. Walmart’s worldwide e-commerce sales grew 22% in the last reported quarter.

How WMT’s Digital Growth Stacks Up Against Costco and Target

Costco Wholesale Corporation COST continues to show digital momentum, with e-commerce comparable sales rising 14.8% in the third quarter of fiscal 2025 and 15.1% in July. Costco is boosting its digital reach through efforts like Costco Logistics and a new Buy Now Pay Later option. Costco Logistics saw a 31% year-over-year increase in big and bulky e-commerce deliveries in the last reported quarter. 

Target Corporation TGT is making significant strides in digital sales and delivery speed, positioning itself as a strong competitor in the fast-delivery race. Target’s digital sales rose 4.7% year over year in the first quarter of fiscal 2025, fueled by the rapid growth of Target Circle 360, which offers same-day delivery with no price markups. With more than 70% of digital orders fulfilled within a day, Target is enhancing convenience and customer loyalty through faster delivery.

What the Latest Metrics Say About Walmart

Walmart has been a standout performer, with shares rallying 51% in the past year, outpacing the industry’s growth of 50.2%. 
 

From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 37.64, higher than the industry’s 34.56. WMT carries a Value Score of C. 
 

The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings per share implies year-over-year growth of 3.5% and 3.6%, respectively. 
 

Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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