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The CEO of Walmart's drone partner says shoppers are ordering eggs to test the technology's handling

5 June 2025 at 20:01
A Wing drone carrying a Walmart delivery.
Wing's drones have a payload of five pounds, which means they can carry about half of the 120,000 items typically found at a Walmart Supercenter.

Wing

  • Millions of US households will soon be able to try drone delivery as Walmart and Wing expand access.
  • The service is coming to 100 more stores across several Southeast metro areas.
  • Wing says thousands of customers use the service each week to purchase items they need fast.

Baby wipes and eggs.

Those are two of the top products Wing CEO Adam Woodworth says Walmart shoppers commonly order using his company's drone delivery service.

"The baby wipes one makes total sense to me," he told Business Insider. "It's a problem when you run out."

The reason for eggs' popularity was less obvious to him until he realized customers were most likely testing the technology's handling.

"If you can get eggs delivered and they show up and they're not cracked, you can get pretty much anything delivered," Woodworth said.

Millions more households will soon be able to try drone delivery, as Walmart and Wing announce their largest expansion yet.

The companies said Thursday that they are bringing the service to 100 more US stores across metro areas, including Atlanta, Charlotte, Houston, Orlando, and Tampa. They're also expanding in the Dallas-Fort Worth market, where the tech has been live for the past year and a half.

Woodworth said drone delivery is proving popular in the areas where it is widely available. Thousands of customers are turning to the service each week to purchase everyday items like groceries or household supplies.

"You're cooking dinner and you realize that the recipe called for scallions and you forgot to get them at the store," he said. (Walmart CEO Doug McMillon previously said he used the service to order last-minute cooking wine for dinner without leaving the couch.)

Wing's drones have a payload of five pounds, which means they can carry about half of the 120,000 items typically found at a Walmart Supercenter. In other words, not a gallon of milk, which weighs eight pounds, but a quart to get you through the morning rush.

Wing said the average delivery time is under 19 minutes. Woodworth said the company wants to get that down to 15.

"Something where it would be way faster to get it delivered than to jump in your car and go drive to the store," he said.

(For the parents waiting on baby wipes, that's about two episodes of "Bluey.")

Americans have harbored their suspicions about delivery drones zipping around overhead (some have even shot at them, which is a felony). Woodworth said Wing does demos to get communities more comfortable with the idea.

"The immediate reaction is that negative one," he said. "But over time, the questions go from the negative to 'Okay, well, when is it going to come to my house?'"

Read the original article on Business Insider

Walmart CFO says tariff rates are still 'too high' and the retail giant can't predict how shoppers will respond

15 May 2025 at 19:09
Fruit and vegetables are seen at a Walmart supermarket in Houston, Texas, on May 15.
Walmart CEO Doug McMillon said he was hopeful that any long-term policy would address foods that the US doesn't produce in significant amounts, like bananas.

Ronaldo Schemidt/AFP via Getty Images

  • Walmart says tariffs remain "too high," even after recent reductions.
  • The company said it would have to raise some prices if import costs didn't come down further.
  • It's not yet clear how already-pressured shoppers would respond to price hikes.

President Donald Trump's shifting trade policy is causing headaches for America's largest retailer.

While Walmart CFO John David Rainey welcomed the recent reduction in tariffs, he said the company was not out of the woods yet.

"Let me emphasize, we still think that's too high," he said of the latest rates during Walmart's earnings call on Thursday.

Walmart says it imports about one-third of what it sells in the US from other countries, namely China, Mexico, Canada, Vietnam, and India, and that cargo is flowing.

"There are certain items, certain categories of merchandise, that we're dependent upon to import from other countries, and prices of those things are likely going to go up, and that's not good for consumers," Rainey said.

Rainey added that shoppers were showing signs of being more financially pressured, evidenced by their spending shifting away from general merchandise and more toward food and essentials.

Walmart CEO Doug McMillon added that he didn't think shoppers would tolerate additional price hikes on their grocery bills, which would limit the retailer's ability to shift import costs to other goods in its assortment.

"The first thing that goes through my mind is food inflation," he said. "We've been through a number of years here where prices have gone up on food, and our customers have felt that, and they don't want any more food inflation."

He also said he was hopeful that any long-term policy would address foods that the US doesn't produce in significant amounts, like bananas.

An additional wrinkle for Walmart management is the question of what economists call "price elasticity," or the change in purchasing patterns in response to changes in cost.

American consumers proved resilient during recent years of high inflation and kept on spending even though prices were climbing.

But Rainey said tariffs make it "more challenging to anticipate demand by item," since it's not clear how shoppers would respond to new tariff-related price hikes and retailers are wary of getting stuck holding large amounts of expensive merchandise.

"We'll watch where our price gaps are," McMillon said, "but we'll also watch what customers are telling us and the response that we get from pressure that they're feeling."

While that puzzle is a little more solvable with high-turnover items like food, it's considerably more difficult to predict for seasonal sales events like back-to-school shopping or the holidays โ€” and Walmart has to place those orders now.

And thanks to a quirk of retail accounting, a significant fluctuation in shelf prices could have an outsize impact on the company's financial results in the coming quarters if it has to make large adjustments to its inventory valuation.

"How do you make a quantity call, and what tariff number do you use?" McMillon said.

Read the original article on Business Insider

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