Wal-Mart saves millions by completing 'site to store' shipping

Wal-Mart Stores, Inc. (NYSE: WMT) has completed the final step of its 'Site to Store' program that allows customers to buy products on Wal-Mart's website and have the item(s) shipped free of charge for pickup at a local Wal-Mart store. In most cases, the items at www.walmart.com are not even available in stores, so the expanded selection can give customers additional choice when shopping at the retailer's website.

Wal-Mart's 'Site to Store' program officially launched in March and now has seen its final phase come through to all of its 3,300 stores nationwide. What is the good angle Wal-Mart is supplying here? Well, in addition to giving customers a large, expanded assortment of merchandise at www.walmart.com, the company can hook customers more into a purchase by not charging shipping fees. Here's the meat: the retailer says that it has already saved customers $5 million in shipping fees by having purchased products shipped for pickup at local Wal-Mart stores instead of having them shipped to customer's homes.

Customers seem to be responding to buying products at Wal-Mart's website that can't be found at stores just looking at a figure like $5 million saved in shipping fees alone. This is a great opportunity for Wal-Mart's marketing department. That is, if the retailer takes advantage of it. Wal-Mart has something other retailers do not -- a network of 3,300 stores across the U.S. where online purchases can be shipped and picked up for free. I'd expect Wal-Mart to take a few swings at competitors Target and Amazon.com if nothing less. Unfortunately, since the retailer seems to not know how to take advantage of good publicity, this may pass off the radar quickly. Too bad.