Walmart, best known for offering products at pocket-friendly prices through its extensive network of brick-and-mortar stores, is setting records this month with the success of its grocery products, which continue to captivate shoppers. .
Amazon, on the other hand, is not satisfied with its penetration into the grocery sector and is expanding its AmazonFresh offering to non-Prime members.
Considering this, I can’t help but wonder if Amazon should focus on its e-commerce expertise and leave brick-and-mortar retail to Walmart, which has done nothing but struggle, especially in the online commerce space. I can’t. please listen.
Thursday (November 9th), PYMNTS reports that Amazon is expanding grocery delivery and free pickup services to all customers in U.S. cities and towns where Prime members have access to Amazon Fresh grocery stores. The service, previously exclusive to Prime members, will simplify the grocery shopping process for all customers both in stores and online, Amazon said in a statement.
Also on Thursday, Amazon announced that customers can shop at a variety of local grocery and specialty retailers listed on Amazon.com, including Bristol Farms, Cardenas Market, Pet Food Express, Weiss Market, and Save Mart. announced that it is now possible to receive deliveries from.
The company plans to integrate Whole Foods Market pickup and delivery to expand grocery delivery and free pickup to non-Prime members. This choice is influenced by the buy online, pick up in store (BOPIS) scheme widely adopted in the United States, as highlighted in .2023 World Digital Shopping Index” with PYMNTS Intelligence cyber source. Of the six countries surveyed, the U.S. experienced the largest increase in BOPIS usage from 2021 to 2022. Additionally, the United States maintains its top spot with the highest percentage of consumers choosing BOPIS to collect their most recent e-commerce purchases, up from 23% in 2021. 32% in 2021-2022.
Additionally, the announcement means Amazon is lowering the threshold for free grocery delivery for Prime members from the $150 minimum implemented earlier this year to the company’s previous threshold of $35 to $100. The decision was made a little more than a month after it was announced.
This decision is consistent with findings by PYMNTS Intelligence. consumer shopping habits. The survey shows that the number of shoppers purchasing their groceries primarily in physical stores has declined, dropping to 44% from 63% at the beginning of 2020. Increasingly, Millennials and Bridge Millennials in particular are purchasing their groceries exclusively online.
Amazon is also closing its brick-and-mortar clothing stores in Glendale, Calif., and Columbus, Ohio, to focus on improving its online fashion shopping experience and growing its grocery store business.
Revenue from Amazon’s brick-and-mortar division, primarily from its Whole Foods Market locations, rose 5.6% to $4.9 billion in the third quarter, according to the report.
“If we really want to offer as much grocery as we want, we need to offer large quantities of physical goods, and that’s what we’ve been working on for several years with a brand we call Amazon Fresh. “I wish we could have gone further at this point. We’ve tried a lot of ideas, and we haven’t yet found the confidence around this format that we want to expand more broadly,” the Amazon CEO said. Andy Jassy In April, he talked about the company’s other brick-and-mortar service, Amazon Fresh Grocery Store.
walmart unboxing‘grocery games
On the other hand, one of the key factors driving Walmart’s success is its dominance in the grocery sector. Walmart, the largest grocer in the United States, derives more than half of its annual revenue from groceries. This category maintains its importance to shoppers even during times of economic downturn and inflation. In contrast to competitors such as Target, which has faced challenges, Walmart has maintained strong sales and attracted foot traffic through its grocery products.
Walmart is taking advantage of the opportunity presented by continued inflation, especially in groceries and household goods, to attract new and infrequent shoppers. The company is effectively attracting more grocery shoppers from high-income households, including those with incomes over $100,000, to its stores and website.
Walmart is reportedly prioritizing improving the customer experience to stay ahead of rivals like Target and Amazon. The company plans to invest more than $9 billion to launch a clothing brand, revamp its website and app, and upgrade stores across the United States. Additionally, Walmart has expanded its online offering by adding more products and brands through third-party marketplaces.
In fact, according to Dennis IncanderaExecutive Vice President, Apparel and Private Brands walmartthe retailer aims to offer a sense of luxury without the premium price tag with its latest apparel products.
read more: Walmart Apparel EVP: Making luxury fashion affordable