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Walmart Succeeds in Online Grocery Services, Report Shows
During the COVID-19 pandemic, online grocery shoppers appear to have turned to Walmart for their grocery needs.
Winsight Grocery Business (WGB) published a report with data from Kantar Retail’s recent Shopperscape survey. According to the report, 48 percent of online grocery shoppers used Walmart’s pickup and delivery services.
Only 36 percent used Amazon’s grocery services, and only 24 percent used Kroger’s online pickup and delivery services.
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Why Walmart is winning in online grocery services https://t.co/Wp1tT6CJZk
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Lei Duran, senior vice president at Kantar, said that the figures “confirm Walmart’s long-held faith that its combination of physical and digital assets would prove a competitive advantage in omnichannel retail,” Fox Business reported.
“As they’ve shown really strong growth for the last four years, it’s been from their online grocery,” Duran said. “Ever since they started this, they had a kind of mantra that they were trying to tackle e-commerce on a Walmart basis: They have this great footprint, where 90% of shoppers are in a close radius to a store. And so they’re using that proximity and the total box to be faster and really make some inroads with grocery, instead of trying to win an Amazon game,” he added.
While shoppers may use multiple companies’ online service, Walmart was still the “clear winner.”
WGB says that Walmart’s success comes in part because of its “combination of physical and digital assets.”
Walmart has “this great footprint,” according to Duran. It's good that “90 percent of shoppers are in a close radius to a store,” Duran said. “And so they’re using that proximity and the total box to be faster and really make some inroads with grocery, instead of trying to win an Amazon game.”
Walmart has also combined its two shopping apps (one for grocery and one for other items) into one. This makes it more convenient for customers.
In May, Walmart launched Express Delivery, which “delivers items – including groceries – to customers within two hours,” Fox Business explained.
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