Amazon (AMZN) - Get Report rivals Walmart (WMT) - Get Report and Target (TGT) - Get Report were feeling the pressure Friday after the online retail giant announced that it will invest $800 million in the second quarter to make one-day shipping for Prime members a reality.
Walmart and Target have been chasing Amazon's product shipping success for years, and now that Amazon is investing heavily to widen its lead investors in WMT and TGT weren't not taking the news well.
Shares of Walmart dipped 3% Friday while Target shares declined 6.4% during the day. Walmart regained some by close, ending down about 1.9% to $101.53. Target, however, dropped lower to nearly 5.7% to end at $77.12.
Amazon said that it has been testing one-day delivery for certain products in some areas around the country. It said that it will build fulfillment centers across the country to facilitate its ambitious delivery goals.
There are currently 10 fulfillment centers under development this year.
Walmart currently offers two-day shipping on qualified items for free. It also debuted same-day grocery delivery in 2018 with some orders being delivered in as little as three hours.
Target also currently offers 2-day shipping for certain items in certain areas. It also has express shipping options that can have items delivered within one business day after they have been shipped to Target stores.
Amazon was rising 1.8% in trading following its first quarter earnings release Thursday.
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