Walmart and Amazon Set to Dominate Grocery and Seafood Sales
As the battle for Americans’ grocery purchases intensifies between Walmart and Amazon, both retail giants are expected to capture a significant share of the market, including seafood sales.
Walmart, with its vast network of over 4,600 stores across the United States, has invested a staggering $9 billion in upgrading 1,400 of its stores in the country over the past two years. In late October, the retailer celebrated the re-grand opening of 117 stores nationwide, following an investment of over $50 million in stores across 30 states. Walmart’s Senior Vice President of Realty, Hunter Hart, expressed his excitement about the upgrades.
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, offering quick meal and drink options for customers.
The investment seems to be paying off for Walmart, as its U.S. net sales rose by 5.4 percent to $110.9 billion in the second fiscal quarter of 2024. The retailer gained market share in grocery with strong unit growth, while its e-commerce sales surged by 24 percent, driven by pickup and delivery services.
Meanwhile, Amazon reported a 13 percent increase in net sales to $143 billion in the third quarter of 2023, with an 11 percent sales growth in North America. The company’s ownership of the Whole Foods supermarket chain, which operates 505 locations across North America, contributes significantly to its success.
Insider Intelligence Analyst Zak Stambor commented on Amazon’s impressive performance, stating that the retail giant’s slowdown last year appears to be a thing of the past. Amazon has focused on cost-cutting measures and key growth areas such as its high-margin online marketplace and advertising. Stambor believes that Amazon’s quarterly earnings and its Prime Big Deal Days event, which generated an estimated $5.9 billion in US retail e-commerce sales, will provide strong momentum for the company as the holiday season approaches.
According to Insider Intelligence eMarketer data, Amazon’s grocery e-commerce sales are projected to reach $40.9 billion, accounting for 22 percent of overall total e-commerce grocery sales in 2023. This figure is expected to rise to $48.4 billion in 2024.
With both Walmart and Amazon making significant strides in the grocery and seafood sectors, it will be interesting to see how this competition unfolds in the coming years.
(Photo courtesy of NYCstock/Shutterstock)