Walmart will revamp its produce departments at about 3,000 stores before next fall with wider aisles, a consolidated organic area and more visible fresh produce bins. Shoppers who buy fresh fruits and vegetables spend 55% more on an average shopping trip than those who don't, according to Nielsen.
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Walmart CEO Doug McMillon says the retailer has caught up to other retailers when it comes to fresh food quality thanks to its Produce 2.0 initiative. Improved produce department layouts will be introduced to about half of the retailer's stores next year.
Walmart is unveiling its Produce 2.0 initiative, which will include new signage and shorter merchandise bins to create an "open market feel" for its produce section. Organic fare will be grouped together and aisles will be made wider to better accommodate traffic from online grocery shopping.
Walmart will court high school-age employees with perks including free SAT and ACT prep classes and the promise to pay for college through Walmart's "Live Better U" partnership with Guild Education. The offer will build on a previously announced program to help employees who haven't finished college earn their degrees.
Walmart is asking suppliers for more on-time deliveries and increasing penalties on partial deliveries, as the retailer continues to ramp up competition with Amazon for shoppers in online grocery and other categories. Partial deliveries account for nearly one-third of out-of-stock situations, sources said.
Walmart plans to remodel 500 stores, many in Florida and Texas, and add 20 locations as part of its capital spending plan for 2019, the company announced. Remodeled stores will have shorter shelving, wider aisles, upgrades to the produce department and new signs and flooring, among other improvements.