- Amazon's reported Project Mercury initiative would widen its same-day delivery network to more than 1,000 facilities over five years, a tenfold-plus increase from the roughly 85 centers it uses today, and place same-day sites within 10 miles of 80% of U.S. Prime subscribers.
- Bank of America analysts read the plan as a defensive move in everyday essentials rather than an assortment expansion: a concentrated set of common products made immediately accessible to blunt Walmart's store-based advantage.
- Walmart's stores already sit within 10 miles of 90% of the U.S. population, and 70% of its online orders were delivered same-day, with more than 30% in under three hours — the benchmark Amazon is chasing.
- Project Mercury's three-year operating plan carried a $6.8 billion budget for U.S. same-day fulfillment-center capacity through 2027, with same-day centers projected at 28% of Amazon package volume in 2029 and half by 2035.
- Amazon CEO Andy Jassy said the company delivered about 40% more items same-day or overnight in H1 versus a year earlier, and Amazon has expanded same-day service in grocery and pharmacy.
- Amazon shares rose about 2.3% on the report and are up roughly 9% year to date; Walmart shares fell 0.7%.
Quotes
“Thus, Mercury's strategy is less about expanding selection and more about making a concentrated set of common products immediately accessible”
“Any internal projections are preliminary, subject to significant revision and shouldn't be treated as finalized plans”