For now, the retailer will test this service exclusively in San Jose, California - and determine if its profitability merits expansion to other markets.

Walmart to Go is an online grocery delivery service launched as a test by the company this past weekend. With its estimated 33% market share in the US and significant breadth & variety of merchandise (and low prices) the to Go service could pose a significant threat to the smaller Fresh Direct. The service will be tested only in San Jose, California, where Walmart can observe how the service performs within the broader scope of the retail business. Does it cannibalize any sales spurred by impulse shopping at the stores? What impact does it have on total store business – and which is more profitable?

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