Amazon's big, new delivery push targets Walmart's biggest advantage, Bank of America says
A worker unloads boxes from an Amazon delivery van in San Francisco, California Bloomberg/Getty Images Amazon's 1,000-hub plan aims to close Walmart's proximity advantage. Bank of America analysts say Amazon's same-day delivery service is "very important strategically." Faster delivery and automation could extend Amazon's retail-margin gains, the bank said. Amazon 's plan for more than 1,000 same-day fulfillment centers is fundamentally an attempt to close Walmart's long-held proximity advantage, Bank of America analysts wrote in a research note. Business Insider reported this week that Amazon is considering an internal project called Mercury, which would expand its same-day fulfillment network from roughly 85 facilities today to more than 1,000 by 2031. The goal is to place inventory within 10 miles of about 80% of Prime members in the US, according to internal planning documents reviewed by Business Insider.
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