Why Walmart Delivery Services Keep Failing Shoppers in 2024

Walmart‘s grocery and product delivery rollout continues struggling to meet expectations and promises. While ultra-convenient in theory, millions of Walmart app users face everything from hours-long delivery delays to entire orders canceled last minute.

As we move into 2023 in a challenging economic climate, satisfying customers with reliable delivery continues eluding this retail juggernaut. Exactly why do Walmart‘s delivery and pickup offerings still routinely fail customers? And when can we expect to see meaningful improvements?

orders exploding beyond capacity

To grasp why Walmart drops the ball fulfilling so many delivery orders, you first need to understand just how fast online grocery volumes exploded over the past three years:

  • Walmart grocery pickup grew 500% from 2019 to 2022
  • In 2022, delivery orders zoomed ahead 480% over 2021 volumes
  • 90% of Walmart shoppers have tried delivery or pickup in the past year

Table 1 shows Walmart struggling to catch up and match fulfillment capacity to skyrocketing consumer demand for delivery convenience:

YearTotal Grocery Orders% GrowthDelivery ShareAvg. Delivery Time
201912 million5%Same day
202265 million441%17%1-2 days

"It took us nearly two years just to locate and equip additional fulfillment centers for pickup and delivery after demand went nuts during COVID lockdowns" explains a regional operations manager.

Infrastructure, staffing, and order throughput bandwidth all lagged far behind vaporizing order counts. And there is no sign of slowing momentum as economic uncertainty further fuels delivery services growth.

Why Your Orders Go Wrong

With order volumes in the stratosphere, no wonder Walmart crumbles under the weight of consumer expectatations on every grocery order being perfectly picked, packed, and delivered on time.

Here are the weakest links routinely sabotaging delivery execution:

Inventory blindspots: Most stores have over 100K unique items and lack systems tracking real-time precise inventory. Showing items as ready for fulfillment that aren‘t actually there in accurate numbers or locations remains a huge tech gap. No-show items grind orders to a halt.

Unstable technical systems: The backend systems supporting mobile apps, websites, and fulfillment centers suffer routine stability failures, struggling to handle spikes. 33% of shoppers report experiencing technical difficulties preventing orders.

Overloaded humans: Call center agents, personal shoppers, site operators, and drivers constitute a woefully understaffed support system once orders start slipping through cracks. Shoppers complain of little help resolving problems.

Last mile uncertainties: Even when orders get picked and packed, securing drivers for last mile delivery reliably has been called impossible by logistics experts. Carefully orchestrated routes fall apart due to residual pandemic impacts and macroeconomic crosscurrents.

And those are just a few weak links! Tackling chronic delivery service reliability issues presents a whack-a-mole style challenge for Walmart‘s leadership.

Targeting Turnarounds in 2024

Walmart is dumping tens of billions into tech and infrastructure to stabilize delivery. Massive progress unlocking accuracy and efficiency gains using AI, automation, and supply chain digitization aims to reach shoppers this year.

Behind the scenes upgrades underway right now include:

  • Micro-fulfillment centers: Smaller urban warehouses packed with robotics to enable faster delivery from closer locations

  • AI-guided pick and pack: Camera vision and algorithms choreograph human movements down to the inch inside warehouses for faster, flawless fulfillment

  • Inventory optimization engines: Machine learning helps match supply to local demand patterns, limiting over/under stock situations dragging down order accuracy

  • AR-enabled shoppers/drivers: Testing augmented reality tools like glasses to improve picking, navigation, and delivery precision powered by data overlays

Will all this innovation be enough to finally deliver consistent reliability? Top Walmart execs are promising order failure rates get cut by over 30% in 2024. We‘re keeping a close eye on order accuracy and delivery times to see if Walmart can really deliver this year.

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