Walmart’s big-box grocery unit to go online as part of $1 billion deal
Walmart is going to go on the Internet in the same way it’s done in the past.
Walmart’s online grocery business, called Walmart Grocery, will become part of a $1.3 billion deal announced Tuesday that also includes its grocery delivery business, Walmart Direct.
The Walmart Grocer will go live on the company’s website in late 2019.
The online store will offer Walmart’s vast array of products including groceries, fresh produce, and home-grown products like spices, jams and jellies.
The online grocery store will have a $100 annual fee, but Walmart’s grocery business is expected to earn more than $300 million in annual sales in 2021.
Walmart said the grocery business will be profitable and it will have an additional 1,000 stores opening in 2021, including 1,200 in New York City, Chicago and other urban areas.
Walmart says the new online grocery will be in place through 2021.
The deal is part of Walmart’s larger $13.7 billion deal to buy Whole Foods.
Walmart also is buying Whole Foods, and the two companies are currently in negotiations to acquire Whole Foods organic grocery business.