- New data shows Amazon continues to lose market share to Walmart in the online grocery space.
- According to Insider Intelligence, by 2024, “Amazon will have a hard time reversing this trend.”
- Amazon has been working to reevaluate its grocery strategy in 2023, particularly its AmazonFresh stores.
Amazon has been trying for years to get shoppers to order groceries online, but it still lags behind Walmart.
Walmart’s online grocery sales have outpaced Amazon’s by an increasingly wide margin since 2019, according to data from Insider Intelligence.
According to the data, by the end of 2024, Walmart will account for 26.9% of online grocery sales, while Amazon will only account for 18.5%. Last year, Walmart’s online grocery sales were $39.4 billion, while Amazon’s sales were $32.41 billion.
“By next year, that gap will have widened significantly, making it difficult for Amazon to reverse the trend,” Insider Intelligence said in a summary of the data released Tuesday. Insider Intelligence and Business Insider are both owned by Insider Inc.
Amazon did not immediately respond to Business Insider’s request for comment.
The coronavirus outbreak that began in 2020 caused many shoppers to try ordering groceries for delivery or pickup for the first time.but in the last few yearscustomers are turning to big-box stores such as: walmart Brian Lau, a forecasting analyst at Insider Intelligence, said it was to save money in the face of inflation.
Walmart uses approximately 4,600 stores across the United States to fulfill grocery orders. For grocery delivery, the company works with thousands of gig worker delivery drivers.
Meanwhile, Amazon uses a combination of warehouses and stores, including Whole Foods and AmazonFresh locations, as well as its own delivery drivers, to deliver food to shoppers.
Grocery, both online and in stores, “represents a significant growth opportunity for Amazon,” CEO Andy Jassy said in his annual letter to shareholders in April.
The U.S. grocery market is estimated at approximately $800 billion, and Walmart The company is the largest grocer in the U.S. by market share, accounting for about 25% of sales, according to Chain data. shop guide Axios reported. Meanwhile, owned by Amazon whole foods It accounts for 1.8% of sales.
Many of Amazon’s grocery ventures have yet to be widely embraced by shoppers.
Amazon acquired Whole Foods in 2017. Since then, it has lowered prices on many basic items and enhanced delivery and pickup options across its chain.
In 2020, the company also began opening Amazon Fresh stores, which tend to be more affordable than Whole Foods.
However, the company suspended new Amazon Fresh store openings earlier this year and plans to renovate some stores with brighter decor and features such as self-checkout kiosks, Bloomberg Businessweek reported. reported in August.
Amazon announced earlier this month that it can now offer delivery and pickup to all customers, regardless of Prime membership, as reported by Bloomberg. The company will also begin delivering Whole Foods groceries to non-Prime members and resume opening new Amazon Fresh stores, according to reports.
“Amazon is still figuring out how to compete with Walmart in the grocery space, both online and offline,” Lau wrote.
Do you work at Amazon Fresh, Whole Foods or Walmart and have a story to share? Contact this reporter at abitter@insider.com.
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