According to the Pioneer Press, Wal-Mart Stores Inc., the world’s largest retailer, plans to test its first fresh grocery delivery service in California, looking online for new sources of revenue growth, said a person familiar with the project.

The Web service, internally dubbed “Project Titan,” hasn’t yet been approved and may not happen, said the person, who declined to be identified because plans aren’t final. If it goes forward, Wal-Mart stores in the San Jose area would fill deliveries for shoppers living nearby, the person said.

“Wal-Mart needs to get more serious about e-commerce, so that would be interesting,” Matt Nemer, analyst at Wells Fargo, said in an interview. “Grocery delivery works in urban markets, and they already do it in the U.K., so they have experience.” The San Francisco-based analyst rates the shares “market perform.”

Wal-Mart is focusing on its online business after seven consecutive quarters of declining sales at U.S. stores open more than a year. Chief Executive Officer Mike Duke also is introducing smaller Express locations to lure shoppers away from grocery stores and rival discounters such as Dollar General Corp. (DG) and Target Corp. (TGT)

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