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Walmart, Target Shares Tumble as Amazon Announces One-Day Shipping for Prime Members
Amazon announced that it will make one-day shipping the standard for all Prime members. This move pressures other retailers like Target and Walmart to keep up with consumers' delivery expectations.
"With more than 100 million paying Prime members across the country, it’s estimated Amazon reaches more than 50% of U.S. households today, and growing... This means more and more consumers are going to get used to having whatever they order on the internet show up at their doorsteps in 24 hours or less."
After the announcement, "Target shares closed Friday down almost 6%. Walmart shares tumbled 2%. Amazon’s stock closed the day up 2.5%."
"A recent, April survey from Coresight Research found 46% of online shoppers in the U.S. had collected at least one of their online orders from a bricks-and-mortar store within the past 12 months. Coresight said Walmart and Target are the two most popular U.S. retailers for buying online and picking up in store, followed by Best Buy and Home Depot."
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