Walmart the giant retailer we all know and have probably purchased low priced goods has been shown an interest to purchasing according to an article the Wall Street Journal that they may be interested in purchasing the online grocery company for $3.4 billion.

Initially it sounds like a crazy deal. The company headquartered in Salt Lake City, Utah is valued at and has only been in business for a year. There mission is to deliver food and groceries door to door and have it be a virtual supermarket.

I don’t have the numbers but I think Walmart should look seriously into making the purchase for 3 reasons.

  1. They can expand their customer base: Walmart has their customer base looking now they can grow in scale with new customers like millennials who want their products shipped to their home.
  2. It is a sign that online delivery of groceries is going to disrupt the supermarket industry and Walmart as well as all supermarkets need to be able to deliver groceries door to door: Consumers don’t want to shop if they don’t have to. If they know exactly what they want and have a budget, that they do not want to deviate from, then they will shop online and wait for their items. Businesses will benefit from this as well as it will be like grocery catering.
  3. One word: Amazon. The largest online retailer is already in the market and may not be growing as fast as their book and retail departments have, but food and grocery items are coming and people will be demanding to have items shipped to them at home and quickly because Amazon will be probably use drones one day to to it.

Yes supermarkets need to be accessible and used as a place for social gathering but more and more consumers are purchasing online and having their goods sent directly to their homes. USPS is working on Sundays to meet the consumer needs an this will be the case for food and groceries too as this segment of the overall market will continue to grow.

It would be wise to carefully consider Walmart buying They have the resources to absorb the company and grow their business, — before Amazon beats them to it.