Wal-Mart Stores is teaming up with Google to let shoppers order by voice, the latest example of the world\u2019s largest retailer finding a technology partner to catch e-commerce leader Amazon.com Inc.<\/p>\n
By the end of September, Wal-Mart customers can link their store accounts to Google\u2019s Express shopping service and use voice-activated Google Home speakers to buy hundreds of thousands of items for delivery. Shopping recommendations will be based on previous purchases.<\/p>\n
Beginning next year, the assortment will expand to include fresh groceries and allow for in-store pickup of orders.<\/p>\n
The collaboration is Wal-Mart\u2019s latest attempt to match the convenience of Amazon, which quickly delivers a bigger online selection and has a dominant line of voice-activated Echo speakers that play music, turn on air conditioners and handle shopping orders.<\/p>\n
Wal-Mart is teaming up with Google to keep its customers from moving to Amazon through these devices.<\/p>\n
For Alphabet Google, the partnership is a boost for its Express shopping app and website, which have also struggled to compete with Amazon.<\/p>\n
Google is dropping its membership fee for the service. It previously charged $10 a month or $95 per year.<\/p>\n
The purchase histories of Wal-Mart shoppers will help Google make personalized recommendations, a key feature needed to make voice-activated shopping convenient.<\/p>\n
“We\u2019ve got the purchase history of 140 million Americans going into brick and mortar stores,” said Marc Lore, head of US e-commerce for Wal-Mart who joined through the retailer\u2019s 2016 acquisition of his Jet.com startup.<\/p>\n
“We are building this to extend to fresh and frozen food. We will deliver to homes and expand aggressively.”<\/p>\n
More than 35 million Americans will speak to internet-connected devices at least once a month this year, more than double the number in 2016, according to a May report from research firm EMarketer.<\/p>\n
About 71% will use Echo devices, with the Google Home speaker trailing at 24%.<\/p>\n
Wal-Mart and Google say the partnership will be particularly compelling for replenishing common household supplies like paper towels, laundry detergent and breakfast cereal. With a Google Home speaker in a kitchen linked to a Wal-Mart account, shoppers can order peanut butter and olive oil to restock pantries when the need is top of mind and they may not have a smartphone handy.<\/p>\n
Having data on Wal-Mart shoppers\u2019 purchase histories will mean Google\u2019s digital assistant won\u2019t have to ask for specific brands, weights or sizes, it will just re-order based on past preferences.<\/p>\n
Amazon is trying to automate this with its Echo gadgets and a Subscribe and Save service that offers discounts on monthly deliveries of items like diapers and toothpaste.<\/p>\n
The fight between Wal-Mart and Amazon is moving beyond price to convenience, and it recently escalated with Amazon\u2019s agreement to purchase grocery chain Whole Foods Market for $13.7 billion.<\/p>\n
Wal-Mart is trying to blunt Amazon\u2019s momentum by offering free two-day delivery on orders of at least $35 without a membership fee. Amazon locks in customer loyalty with its $99 a year Prime membership, which offers delivery discounts and free music and movie streaming.<\/p>\n
Wal-Mart is also working with ride-hailing service Uber Technologies Inc. to deliver groceries in Orlando and Dallas, and is testing warehouse automation with startup Symbotic to match Amazon\u2019s Kiva warehouse robots.<\/p>\n