Walmart and Amazon Poised to Dominate Grocery and Seafood Sales
In the ongoing battle for Americans’ grocery purchases, Walmart and Amazon are both making significant strides towards capturing a larger market share in the near future.
Walmart, with its vast network of over 4,600 stores across the United States, has invested a staggering $9 billion in the past two years to upgrade 1,400 of its stores nationwide. The retailer recently celebrated the re-grand opening of 117 stores across the country, following an investment of more than $50 million in upgrades. Hunter Hart, Walmart’s Senior Vice President of Realty, highlighted the company’s commitment to enhancing the customer experience.
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 busy shoppers.
These efforts have paid off for Walmart, as its U.S. net sales rose by 5.4% to $110.9 billion in the second fiscal quarter of 2024. The retailer experienced strong unit growth in the grocery sector, gaining market share. Furthermore, its U.S. e-commerce sales surged by 24%, driven by the popularity of pickup and delivery services.
Similarly, Amazon has also seen impressive growth in its grocery sales. The company’s net sales rose by 13% to $143 billion in the third quarter of 2023, with an 11% increase in North America. Amazon’s ownership of the Whole Foods supermarket chain, which operates 505 locations across North America, has contributed to its success in this sector.
Insider Intelligence Analyst Zak Stambor commented on Amazon’s performance, stating that the retail giant’s cost-cutting measures and focus on key growth areas, such as its high-margin online marketplace and advertising, have propelled its success. Amazon’s quarterly earnings and its Prime Big Deal Days event, which generated an estimated $5.9 billion in US retail e-commerce sales, have given the company 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.
As Walmart and Amazon continue to invest in their grocery and seafood offerings, it is clear that they are positioning themselves as dominant players in the industry.
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