Walmart Inc. (NASDAQ:WMT) reported roughly 40% growth in U.S. store-fulfilled delivery in its fiscal second-quarter results released August 20. Demand for convenience is growing. For investors, the question is whether delivery fees and merchandise profit cover picking and delivery costs when shoppers buy only a few items.
In a May 28 announcement, Walmart Inc. outlined delivery in 30 minutes or less across 33 U.S. markets, with a $10 fee for Walmart+ members. The service targets immediate needs, including forgotten groceries. Availability depends on factors such as basket size, driver availability, and distance from the store.
Read Also: Walmart (WMT): The Best Counter Cyclical Stock to Buy Right Now
Bull Case
Walmart Inc. can use nearby stores and existing inventory to serve urgent orders. Shorter journeys could reduce delivery time and mileage, while more orders within the same neighborhood could improve driver utilization. The advantage is strongest where demand is concentrated enough to keep workers and drivers productive.
The $10 fee gives Walmart Inc. a direct source of revenue beyond the merchandise itself. A shopper who needs one missing dinner ingredient may value avoiding a store trip enough to pay for speed. That makes small baskets potentially viable even when the merchandise contributes relatively little gross profit.
There is also a broader customer opportunity. Reliable service could help Walmart Inc. win purchases that would otherwise go to a nearby competitor and encourage repeat shopping. U.S. e-commerce sales rose 24% in the quarter, and management cited improved e-commerce economics among the drivers of segment operating income growth. That supports the broader strategy, although it does not establish profitability for the fastest orders.
Don’t Miss: Walmart (WMT) Offers Lower Prices Across Stores and Clubs.
Bear Case
For Walmart Inc., a small order still requires someone to select items, prepare the purchase, and deliver it. Fewer items can reduce picking time, but the delivery trip does not shrink in proportion to the basket. A tight deadline can also limit opportunities to combine deliveries efficiently.
The fee creates a trade-off for Walmart Inc.. It helps cover costs but may discourage frequent use for inexpensive purchases. Waiving or discounting it could encourage demand while weakening the revenue available to pay for fulfillment. The relevant measure is the fee actually collected after promotions, alongside merchandise profit and delivery expense.
Growth alone cannot settle the economics. The roughly 40% increase covers broader store-fulfilled delivery, and the cited announcements do not disclose average basket size, cost per order, or profit specifically for 30-minute service. Walmart Inc. also risks turning one larger shopping trip into several smaller deliveries without gaining much additional household spending.
Hedge Fund Sentiment
The filings available so far reflect positions held before Walmart Inc. reported its fiscal second-quarter 2027 results. Insider Monkey’s database showed 111 hedge funds holding WMT at the end of 2Q2026, up from 99 funds three months earlier.
Conclusion
Walmart Inc. has credible advantages in proximity, assortment, and delivery fees. The investment case strengthens if fast orders add profitable purchases and deepen customer loyalty. Basket size, repeat orders, fees collected, and fulfillment costs will determine whether speed creates value. More deliveries matter most when profit per customer grows with them.
Read More: Uber Technologies (UBER) Explores Delivery Hero Takeover and Is Alibaba (BABA) the Most Oversold Strong Buy-Rated Stock to Invest In Now?
This article is originally published at Insider Monkey.
Hedge Fund Resource Center