While Amazon is busy building out warehouse distribution fulfillment centers, Walmart is turning its stores into fulfillment centers as the two mega leading retailers battle to become the online consumer favorite.

"The store is becoming a shoppable fulfillment center," Tom Ward, chief e-commerce officer for Walmart U.S., told CNBC in an interview.

Walmart is using its massive store footprint in a variety of supply chain and delivery strategies. Its 4,700 U.S. stores are being used as launch pads for delivery drones as well as direct-to-fridge deliveries, and the retailer also plans to begin packing and shipping third-party products from its stores, according to the report.

Ward is an experienced supermarket and delivery leader who stepped into his role this past February. His quest is driving e-commerce sales and providing customers the opportunity to shop whichever way they prefer.

"We don't want to show any friction. We don't want to show any plumbing," Ward told CNBC. "We want to solve all the magic behind the scenes and make it seamless so they can buy a filet steak and a bag of apples and a t-shirt and a microwave, and they can get it fulfilled anywhere that they want to get it fulfilled."

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