As the battle for grocery dominance continues between Walmart and Amazon, both retail giants are poised to make significant gains in the seafood and grocery sectors.
Walmart, with its extensive network of over 4,600 stores in the U.S., has invested a staggering $9 billion in the past two years to upgrade 1,400 of its stores across the country. In late October, the retailer celebrated the re-grand opening of 117 stores, which involved an investment of more than $50 million in stores across 30 states. Hunter Hart, Walmart’s Senior Vice President of Realty, expressed 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 to provide quick meal and drink options for customers.
The investment seems to be paying off for Walmart, as its U.S. net sales saw a 5.4% increase to $110.9 billion in the second fiscal quarter of 2024. The retailer attributed this growth to strong unit growth in the grocery sector and a surge of 24% in U.S. e-commerce sales driven by pickup and delivery services.
Amazon, on the other hand, experienced a 13% rise in net sales to $143 billion in the third quarter of 2023, with an 11% increase in sales in North America. The e-commerce giant owns the popular Whole Foods supermarket chain, which operates 505 locations across North America.
Insider Intelligence Analyst Zak Stambor commented on Amazon’s impressive performance, stating that the company has surpassed expectations. Stambor noted that Amazon’s cost-cutting measures and focus on key growth areas, such as its high-margin online marketplace and advertising, have contributed to 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 given the company strong momentum heading into the holiday season.
Insider Intelligence eMarketer data predicts that Amazon’s grocery e-commerce sales will reach $40.9 billion, accounting for 22% of overall total e-commerce grocery sales in 2023. By 2024, these sales are projected to rise to $48.4 billion.
Both Walmart and Amazon are clearly making strategic moves to capture a larger share of the grocery market, including seafood sales. As the competition heats up, consumers can expect more convenience and options when it comes to their grocery shopping experience.