Walmart Offering Prepared Meal Kits

07 March, 2018, 00:25 | Author: Teresa Adams
  • Walmart

Walmart is rolling out meal kits.

Walmart's grocery business is threatened by Amazon, who acquired Whole Foods, discounter Aldi and meal-kit provider Blue Apron.

Walmart's first exposure was in offering meal kits from third-party companies - California-based Takeout Kit and Chicago-based Home Chef - on its website beginning late previous year. Meal kit options range in price from $8 to $15 and serve two people.

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Shoppers can buy pre-portioned meal kits that they need to cook, rotisserie chicken meals or one step meals that just need to be heated up.

Walmart's basil garlic chicken kit. "We're here to help", noted Tyler Lehr, SVP and general merchandise manager, Deli Services, Walmart U.S. "We were not going to make a move in this space until we were comfortable". Another, which requires a little more work, is meant to be paired with Walmart's rotisserie chicken.

Last May, Amazon opened two test locations in Seattle that allow Amazon Prime subscribers to place a grocery order online and then pick it up at a drive-through window.

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Many supermarkets have continued to sell prepared meals, however for Walmart this was more of a strategic approach that saw it engage third party suppliers until it found out the right approach for the discharge of the program.

Although several other retailers have tried the meal kit option, majority haven't succeeded in this business venture.

Grocery analyst David J. Livingston said retailers like Walmart are searching for ways to maintain their market share in the grocery industry as online shopping, grocery delivery and pickup grows rapidly. Scrambling to find a meal "puts pressure on a family", he said. "If you disappoint the customer on quality, it takes a long time to get that back".

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