What: Walmart is introducing parcel stations in its stores to enhance last-mile delivery efficiency.

Why it is important: These parcel stations help Walmart build density into its last-mile delivery process, reducing costs and improving margins in the competitive e-commerce market.

These mini post offices within the stores will receive and deliver packages, providing customers with more time to place online orders for next-day delivery. The company plans to have over 40 parcel stations in operation by the end of the year. The packages from Walmart's fulfillment centers are transported to these stations using their private fleet and are then delivered to customers' homes through independent contractors or third-party carriers.

Walmart's Spark Driver network is also contributing to increased density by making deliveries from nearby stores and for other retailers through Walmart GoLocal. The retailer has succeeded in reducing store-to-home delivery costs by 15% and is working towards faster same-day delivery times.

Walmart adding parcel stations for faster delivery, greater density