A recent announcement was dropped by Walmart, it is planning to buy Cornershop which is an online marketplace for groceries that caters on-demand delivery to customers in Chile and Mexico. The deal was worth $225 which is considered to be a modest amount for Walmart, the king of retail. If the previous digital ventures of the company are to be used as basis, as explained by entrepreneur Leonardo Gonzalez Dellan, it is possible that a few years from now Cornershop will become the foundation of the company in conducting business in the region of Latin America.
Cornershop is basically an online marketplace that provides service similar to Instacart, for those who are residing in the United States. It gives the users the access to different grocery items available in their local store which they can order on the spot. Once the order is made, it is sent to a personal shopper who will do the shopping and also delivers the items in a span of just one hour. This service will require an additional fee from the consumer which is very similar to other online services currently in the market. The goal is to provide convenience for the customers as well as to save time especially those who are not able to get out of their house to do their own grocery shopping.
Just like Instacart, the customers can order items from different chains including Superama, a subsidiary of Walmart based in Mexico, and even its competition, Costco. When it comes to retail, Latin America and Mexico are considered to be essential battleground therefore it is only right that Walmart made the choice to purchase Cornershop rather than catch-up later on which is a bigger challenge.
Aside from the United States, the biggest business opportunity for Walmart lies in Mexico and the countries in Latin America. Mexico has the second highest number of Walmart stores while Chile and other countries in Latin America are on the third and fourth spot respectively. It is by opinion of Leonardo Gonzalez Dellan, a seasoned entrepreneur, that Walmart should take advantage of the Latin America market now more than ever.