Target Deliv deal shines a light on underwhelming Walmart

Target’s acquisition of Deliv’s same day delivery technology platform highlights a major Walmart weak spot.

That’s according to Brittain Ladd, a former Amazon exec and supply chain consultant.

“LinkedIn members know that I am negative towards Walmart. Why? Because it continues to underwhelm when it comes to its last mile strategy,” Ladd said in a LinkedIn post.

“Walmart must step back and reevaluate its strategy. I strongly recommend that it do the following: Acquire Bringg. This is a no brainer; Place Guy Bloch, CEO at Bringg, in charge of designing and implementing a last mile strategy.; Acquire Skipcart and rename the company Walmart Home Delivery,” he added.

Walmart has the opportunity to leverage Bringg to orchestrate its last mile delivery needs for its own customers, but also provide last mile delivery for other retailers and restaurants, Ladd believes. “It must stop thinking small, and start thinking big,” he concluded.

Shrewd move

The Deliv acquisition will help Target, which already owns on-demand delivery service Shipt, catch up to its rivals, according to GlobalData

Luke Gowland, Thematic Analyst at GlobalData, says: “It will be able to improve its position within several areas of retail, including e-commerce, delivery efficiency and speed, and smart supply chain, ensuring that it is better positioned in the highly competitive retail market.”

Technology has become vital for the retail sector across all aspects of the value chain, and investing effectively in these is essential for a company’s future success, he adds.

“Even before the Covid-19 pandemic, home delivery was a major area of competition among retailers and a focus of substantial investment. Covid-19 has prompted an increased demand for home delivery, further testing retailer’s capabilities. The pandemic is a disruptive threat and is accelerating innovation within the retail sector, which will ultimately benefit customers,” Gowland comments.

“This deal is a clear indication that Target is serious about competing alongside Amazon and Walmart. These companies have been particularly proactive in developing their last mile delivery capabilities. The acquisition of Deliv’s same day technologies will enable Target to keep pace with the leading retailers.”