Walmart and Amazon Set to Dominate Grocery and Seafood Sales
As the battle for Americans’ grocery purchases continues between Walmart and Amazon, both retail giants are poised to capture significant market shares in the near future.
Walmart, with its extensive network of over 4,600 stores across the U.S., has invested a staggering $9 billion in upgrading 1,400 of its stores nationwide over the past two years. In late October, the retailer celebrated the re-grand opening of 117 stores across the country, following an investment of more than $50 million in stores located in 30 states. Hunter Hart, Walmart’s Senior Vice President of Realty, confirmed the substantial investment.
The revamped Walmart stores now feature larger online grocery pickup and delivery areas to meet the growing demand. Additionally, new grab-and-go sections have been introduced to offer quick meal and drink options to customers.
In its second fiscal quarter of 2024, Walmart experienced a 5.4% increase in its U.S. net sales, reaching $110.9 billion. The retailer attributed this growth to strong unit growth in the grocery sector. Furthermore, Walmart’s U.S. e-commerce sales surged by 24%, driven by increased pickup and delivery services.
Similarly, Amazon reported a 13% rise in net sales to $143 billion during the third quarter of 2023, with an 11% increase in sales in North America. The company’s ownership of the Whole Foods supermarket chain, which operates 505 locations across North America, contributed to this growth.
Insider Intelligence Analyst Zak Stambor commented on Amazon’s performance, stating that the retail giant exceeded expectations in the third quarter. Stambor noted that Amazon’s cost-cutting measures and focus on key growth areas, such as its high-margin online marketplace and advertising services, have propelled its success.
Amazon’s recent quarterly earnings and its Prime Big Deal Days event, which generated an estimated $5.9 billion in U.S. retail e-commerce sales, have provided the company with strong momentum heading into the holiday season.
According to Insider Intelligence eMarketer data, Amazon’s grocery e-commerce sales are projected to reach $40.9 billion, accounting for 22% of overall total e-commerce grocery sales in 2023. This figure is expected to rise to $48.4 billion in 2024.
With their aggressive strategies and continuous investments, both Walmart and Amazon are set to dominate the grocery and seafood sales markets.
(Photo courtesy of NYCstock/Shutterstock)