Discount retailer, Wal-Mart Stores, Inc. (WMT) is brainstorming an idea to have existing customers deliver some of its online purchased orders to customers.
Walmart is considering an idea that could help it better compete with company’s like Amazon (AMZN). This potential plan would have existing customers deliver items that were ordered online by other customers in their neighborhood.
This plan would allow customers to “rent out” space in their cars for items that need to be delivered. The customer would tell the store where they lived and Walmart would then determine if there are any deliveries to be made on that customers ride home. By participating in the program, customers could receive a discount on their in-store purchase.
Walmart is currently using shipment companies like Fedex (FDX) to ship items that were ordered online. If this plan was successful, the company would save money on shipping costs and customers would be able to receive products faster.
The idea of having its own customers deliver products carries many risks and legal issues. Items may never reach its destination or result in theft or fraud.
Wal-Mart shares were mostly flat during Thursday morning trading. The stock has increased 23% in the past year.
The Bottom Line
Shares of Wal-Mart Stores, Inc. (WMT) have a 2.51% yield, based on Wednesday’s closing price of $74.78.
Wal-Mart Stores, Inc. (WMT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.