Walmart Canada (NYSE:WMT) has announced plans to drop unlimited free shipping of online orders as competitive pressures ease. Walmart first launched free shipping in 2013 as Target (NYSE:TGT) began its Canadian expansion.
The news comes as Target prepares to shutter all 133 stores in Canada and leave the country completely, reported the Globe and Mail. And just a few days ago, Best Buy's Future Shop announced that half of its 131 locations would close, with the others reopening under Best Buy's traditional name.
Walmart will charge $4.97 in Canadian dollars for standard shipping on orders less than $50. At the $50 threshold, consumers will get free standard home delivery on everything but oversized items. Pick-up orders remain free at store locations with "grab and go" lockers in the Greater Toronto Area, as well as at post offices that aren't located in remote areas.
"One of our pillars has been free standard home shipping to most places in Canada, but in a few days we will make some changes to our home shipping charges to ensure we can continue to give you great service and everyday low prices," Simon Rodrigue, senior VP of e-commerce, told the Globe and Mail.
Earlier this year, Walmart announced it would spend $340 million on expansion in Canada in 2015, a number that is lower than what was budgeted for 2014. The company is slowing physical store expansion this year so it can focus on digital sales.
-See this the Globe and Mail article
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