Wal-Mart Tests Home Grocery Delivery in California Market

The WSJ reports that Wal-Mart Stores Inc. (WMT) has started testing grocery delivery in California as it attempts to adjust to competitive risks from online merchants such as internet giant Amazon.com Inc (AMZN), which launched its own grocery delivery service in the U.S. in fiscal 2007.

The Bentonville, Ark-based retailer unveiled its brand new service in the San Jose, Calif., market on Saturday named “Walmart To Go.” It enables consumers to buy food, health and beauty items, medicine and various other essential household products from the company’s website and have them brought to their doorsteps at their time of choice for fees starting at $5.

A number of various other retailers, including Sears Holdings Corp. (SHLD), have started trying out very similar revenue models, which are very common in Europe and available in some large U.S. metropolitan areas, but still mostly the province of smaller retailers in America.

Wal-Mart said the evaluation was restricted to a particular market and declined to provide details on where else it might test the new service, according to the report.

Shares of Wal-Mart closed Thursday down $0.11 on 5.8 million volume at $53.58.

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