Tag Archives: InHome

Walmart’s InHome hunts for ways to ditch single-use plastics

Walmart is trying to reduce its reliance on single-use plastic bags. It has a pilot program through its subscription grocery service, InHome.

Nicholas Pizzolato

When Walmart rolled out a new grocery delivery service, it tested a bold premise: customers letting a stranger walk into their homes to deliver milk, eggs and other products directly into the fridge.

Now that expanding service, InHome, is testing whether the country’s largest grocer and its shoppers can phase out reliance on single-use plastic bags and other kinds of disposable packaging that wind up in shoppers’ homes — and ultimately, the landfill.

Last fall, Walmart swapped out disposable bags for tote bags that it collected, washed and used again for the subscription service.

The pilot project, which was limited to a single store near the New York metro area, is part of Walmart’s broader effort to deliver on a pledge to move toward reusable, recyclable or industrially compostable packaging for its private brands and reach zero waste in its own operations in the U.S. and Canada by 2025.

In the first half of 2022, Walmart plans to test alternatives to single-use plastic for curbside pickup and home delivery, said Jane Ewing, Walmart’s senior vice president of sustainability. Those services are fast-growing parts of Walmart’s grocery business, after shoppers got used to the convenience during the pandemic.

Wall Street, lawmakers and consumers have put pressure on publicly traded companies to set lofty sustainability goals. A growing number of states, major U.S. cities and countries are banning or charging fees for single-use plastics. Consumers, particularly millennials and Gen Zers, are paying more attention to companies’ environmental impact. And investors are considering environmental, social and governance policies as a factor when deciding when to buy or sell a company’s stock.

Judith Enck, president of the nonprofit Beyond Plastics, said companies are “reading the writing on the wall,” much as they did when states and cities began passing laws that phased in higher minimum wages.

Yet she said she has grown weary of seeing retailers and consumer-packaged goods companies make promises that come with yearslong timetables and incremental steps toward compliance.

“Companies need to be bolder and they need to move faster,” she said. “These shouldn’t be pilots. They should be standard store policy.”

From cucumbers to clamshells

At Walmart, Ewing said her team scours store aisles and backrooms for ways to eliminate plastics from its supply chain, from films that wrap up pallets of merchandise to clamshells that hold leafy greens.

She said Walmart is especially focused on finding ways to keep fruits and vegetables fresh with packaging like what it devised with start-up Apeel: an invisible, edible plant-based coating on a cucumber instead of shrink-wrapping it in plastic.

Yet progress can be slow. For example, Walmart recently removed a plastic window from a box that holds plastic cutlery sold by its private label, Ewing said. That small change will be multiplied across inventory throughout its more than 4,700 U.S. stores. But that doesn’t solve the underlying problem — the plastic utensils themselves.

What’s more, private brands only drive a fraction of Walmart’s total sales. That means it must ultimately coax suppliers to change packaging to shift the balance of single-use plastics at Walmart’s stores. Eliminating or cutting back on packaging is one of the key parts of Project Gigaton, an effort that Walmart launched five years ago that aims to reduce one gigaton of greenhouse gas emissions from the company’s supply chains by 2030.

Walmart is part of Beyond the Bag, an initiative by retailers including Target, CVS Health, Kroger and others to look for ways to remove single-use plastic bags from the environment.

For its part, Walmart has tried Goatote and Chico Bags, two different kiosk systems that allow shoppers to borrow and return reusable bags, and Fill it Forward, an app-enabled tag that customers can add to their own bag, which tracks and incentivizes use by giving rewards.

“Most customers want to do the right thing; they want to lead a more sustainable life,” Ewing said. “But as a retailer, we have to make it easy for them. If it’s too complex, too hard, they’re not going to do it. So we have to figure out how can we build this into the flow of their regular shopping experience and take out the pain points for them.”

By the end of this year, Walmart plans to expand the InHome delivery service’s availability from 6 million to 30 million households. The subscription program costs $19.95 per month.

In the coming months, the grocer envisions that millions more customers will get their milk, pasta and other purchases delivered to the kitchen or garage with reusable tote bags, Ewing said.

Walmart has yet to decide its geographic markets or how many customers will receive the tote service, but Ewing said it will expand the pilot in the Northeast. Ultimately, she said she would like to see the totes used by InHome across the country.

Sustainability is built into other parts of the InHome initiative. For example, Walmart has reserved 5,000 electric delivery vans from General Motors for the service.

A circular system

The tote bags for the InHome pilot are made by Returnity, a company that is trying to move retailers and consumer-packaged goods brands away from disposable boxes and bags and toward a circular system of containers that can be reused. Returnity has developed packaging for Estee Lauder, New Balance and Rent the Runway.

Mike Newman, CEO of Returnity, said for the model to work, reusable packaging must make sense financially. That means packaging that is used frequently, designed with recycled plastics or other sustainable materials, with a return rate of more than 92%. With the Walmart program, he said, the return rate was nearly 100%.

Returnity counts James Reinhart, CEO and co-founder of online thrift store ThredUp, as one of its early investors.

At ThredUp, reusable packaging flopped and became a telling lesson, Newman said. Too many customers just tossed company-provided bags rather than reuse them, he said.

“You have to be cost competitive,” he said. “It doesn’t matter how green it is. If it can’t be economically viable, it’s never going anywhere.”

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Walmart expands its direct-to-fridge InHome delivery service to 30 million homes

Walmart is making a big bet on customers’ desire for increased convenience, announcing Wednesday that its InHome delivery service will expand availability from six million to 30 million households, including in cities such as in Los Angeles and Chicago, by the end of this year.

InHome allows Walmart employees wearing cameras to enter a customer’s home to deliver groceries and other purchases or to pick up returns, even when the customer is not there.

“Now you’ve got this ultimate convenience where you get home, the refrigerator is restocked and other items like video games, clothing, toiletries and other non-perishables are on the countertop,” Tom Ward, senior vice president of last mile delivery at Walmart, told CNBC. “We will also pick up your return if you start that process on the app we will grab the item the next day and will process that return for you.”

CNBC was given access to a demonstration of the InHome service in Glendale, Arizona. The process began with the delivery driver attaching a wearable camera. Every delivery can be viewed live or as a recording on the Walmart App. The employee outfitted in protective coverings over their shoes then accessed a smart lock from Walmart at the front door to enter the home and carried the ordered items inside in plastic bins. The delivery person placed items in the refrigerator and on the counter as requested and wiped down all surfaces with a sanitizing wipe before leaving.

“I’ve used it for the last month and a half and have been very satisfied,” Erin Amini, a customer in Glendale told CNBC. “We no longer have to go to the store. We feel safe with Covid. They wear masks, they sanitize and they are also always recording so we know what is happening while they are in our home.”

Walmart is expanding InHome as the lines are blurring between what Insider Intelligence estimates as a $93 billion grocery delivery market and what Coresight Research pegs as up to a $25 billion quick-commerce market, which includes the likes of DoorDash. Walmart’s InHome service costs $19.95 per month with no additional fees, and it’s part of a growing trend of “delivery as a service.”

  • Amazon Fresh grocery delivery is included with a $12.99 per month Prime membership.
  • Instacart Express costs $9.99 a month and offers free delivery for orders over $35 with lower service fees.
  • DoorDash offers a DashPass subscription for $9.99 a month with a minimum of $12 for restaurant orders. DoorDash also makes deliveries from retailers like 7-Eleven and CVS.

Walmart said it will hire 3,000 employees to support its InHome expansion, giving them real world and virtual reality training. They will be paid approximately 9% more than Walmart’s average wage of $16.40 an hour. Walmart’s 3,700 stores will be used as fulfillment centers and InHome delivery drivers will drive electric vehicles as part of the company’s goal of a zero emissions logistics fleet by 2040.

“They’ll also deliver Walmart packages, they’ll deliver Walmart GoLocal client packages, and they’ll do InHome delivery. It’s making the best of all these assets that we’re putting together in a way that’s really sustainable,” Ward said.

Walmart initially launched InHome in 2019 as a pilot in Kansas City, Pittsburgh and Vero Beach, Fla., and it’s since expanded in Northwest Arkansas, Atlanta, Phoenix and Washington, D.C. The company declined to say how many customers the service now has.

“What we’ve learned in the years we’ve been testing our InHome proposition is that customers love the convenience of having the items that they’ve ordered put in their fridge, their freezer, or left on their countertop, or in the garage when they come home. And they can just set and forget and really do the things they want to spend their time doing,” Ward added.

Currently the nation’s largest grocer by revenue, Walmart has used that frequency-driving category to fuel online sales growth by launching convenient ways for people to shop and encouraging customers to buy other items, such as apparel, electronics and more, when replenishing the fridge with a gallon of milk or getting ingredients for dinner.

The big-box retailer is also the nation’s leader in click and collect, a service that allows shoppers to place online orders and pick up purchases in the store or parking lot. One in every four dollars that Americans spent on click and collect in 2021 went to Walmart, according to a recent estimate by Insider Intelligence.

“We think there is no one right answer in the last mile equation,” Ward said. “We want to experiment and then when we see those things that really resonate with our customers we want to scale out to as many people as we possibly can as fast as we can.”

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