A new report by market research firm Packaged Facts lists price and convenience as key for Walmart shoppers buying groceries online.
Online grocery shoppers loyal to Amazon are more likely to cite free delivery, same-day delivery and one-day delivery as most important to them, according to a news release on the report.
As for brands and selection, Walmart online grocery shoppers were more likely to mention high-quality store brands and fresh food variety as influential in their choice of retailer, while Amazon grocery shoppers highlighted bulk purchasing and unique products.
In its description of the report, Packaged Facts reported inroads that Walmart has made in the online grocery space.
“Walmart U.S. has already ramped up click-and-collect (online order/in-store pickup) grocery, the sales of which Packaged Facts forecasts to grow at a 154% average annual rate from 2017 through 2021, and grocery delivery is ramping up, too,” the firm wrote. “At Sam’s Club, Scan & Go has proven to be a hit. At the same time, Walmart is bringing its ‘everyday low prices’ within reach of consumers not traditionally associated with the brand — but who apply online purchasing rationales that align well with the retailer’s core strengths.
“Competitive analysis reveals that Walmart possesses significant grocery strengths — in-store and online — when compared to major retailers ranging from Aldi to Target to Amazon,” Packaged Facts wrote. “But competitors can also leverage its weaknesses, as the grocery category moves into a more mature online growth phase.”
According to the release, about 59% of grocery shoppers have bought from Walmart in the last three months — 58% in-store, 5% online.
Nine percent of grocery shoppers have purchased groceries from Amazon, but it was the Walmart food retail competitor that has grown usage penetration most quickly between 2014 and 2018.