Retailers have had a difficult time trying to persuade American consumers to start shopping for their groceries online.
For most people in the US, they still prefer to go to the grocery store in order to make their purchases and get what they need. Online grocery sales today only make up about 1 to 3 percent of the market overall and retailers like Amazon, Walmart, and others, are looking for ways to change that.
When it comes to the US grocery market, Walmart reigns supreme with grocery sales that account for about 14 percent of the overall market.
This is where most people decide to do their grocery shopping and this really isn't that much of a surprise considering that Walmart is the largest retailer in the country. The success continues, as the company just recently announced that their food sales this year have reached their highest that they've been in the last 5 years.
Over the last several years they have been trying to strengthen their stance in the online grocery market and at the moment they currently offer their online grocery service to over 900 locations throughout the US.
Some of their competitive attempts to try and boost their success, have been the introduction of things like grocery delivery services, the creation and availability of exclusive snacks, and new payment methods (Walmart Pay) that allow consumers to pay for their purchases without having to go through a traditional cashier and checkout aisle.
They also recently announced a partnership with Google to pursue the creation of a voice-activated shopping experience for consumers.
For Walmart, food is a big part of their business operation and it accounts for about half of their overall revenue; accounting for hundreds of billions in revenue from grocery sales every year. In recent years we have also seen Walmart expand their selection of fresh foods and organic items, helping to make items increasingly affordable for US consumers. One Walmart store location in Florida even just recently opened up a fresh/organic food restaurant at its location.
An online retail war has been brewing, said to be between Amazon and Walmart. And Walmart may have the upper position for now when it comes to the US grocery market, but competitors are always looking to try and change that. And this is why Walmart will always need to be trying to innovate and trying to compete, so that they can maintain their market position.
One reason that many consumers say they love shopping at Walmart is because of the low prices on many of their items, but they might not have the lowest price for long. Whole Foods and Amazon will be looking to aggressively compete in that area; Amazon recently announced that they plan to drastically cut prices on a wide variety of goods at Whole Foods; following their acquisition.
Amazon has a dominance over Walmart when it comes to their online retail superiority and now that they've acquired Whole Foods it might be only be a matter of time before we see a shift and more consumers start to go looking in another direction for their food needs. Though the new deal for Amazon gives them hundreds of new physical locations around the US to help them carry out the grocery delivery, Walmart is still in the lead with stores within 10 miles of roughly 90 percent of Americans.
Pics:
Wikipedia via forbes.com/sites/clareoconnor/2014/04/15/report-walmart-workers-cost-taxpayers-6-2-billion-in-public-assistance/#3d9f1043720b
via knowledge.wharton.upenn.edu/article/amazon-vs-walmart-one-will-prevail/
Sources:
http://time.com/money/3769044/walmart-lowest-rated-groceries/
http://www.denverpost.com/2017/08/20/americans-buying-more-food-walmart/
http://www.businessinsider.com/walmart-opens-organic-restaurant-in-florida-store-2017-8
https://phys.org/news/2017-08-amazon-looming-walmart-touts-surging.html
http://www.cbc.ca/news/business/walmart-google-1.4258588
https://www.theguardian.com/technology/2017/aug/24/whole-foods-price-cuts-amazon-walmart-online-war
https://www.cnbc.com/2017/08/24/the-discounts-at-whole-foods-could-help-solve-amazon-primes-biggest-headache.html
http://fortune.com/2017/04/05/amazon-walmart-costco-target-market-cap/
Related Posts:
Why Aren't More People Shopping For Their Food Online?
https://steemit.com/food/@doitvoluntarily/why-aren-t-more-people-shopping-for-their-food-online
Robot Workers Coming To More Grocery Stores In The US
https://steemit.com/food/@doitvoluntarily/robot-workers-coming-to-more-grocery-stores-in-the-us
Will The Whole Foods Deal Help Amazon To Gain More Traction In The Grocery Market?
Amazon Looking To Carve Out A Bigger Space In Grocery Delivery Services
Walmart Trying To Re-Launch New Payment App
https://steemit.com/money/@doitvoluntarily/walmart-trying-to-re-launch-new-payment-app
I cant wait until I can order my groceries online and im sure my wife feels the same way.
I guess its better to go to the store
As a strong advocate of the free market, if the government will let the consumer decide, the best will ALWAYS rise to the top and those who are not the most efficient, cheapest, or virtuous will sink.
It's such a simple concept, yet so powerful. I don't know why it's not a no-brainer. In my community when I talk like that, which I often do, I get weird looks, and incredulity. Though I live in Canada, with a whole lot of sheep.
My bet is still on Amazon winning in the end.
with their fleet of delivery blimps lol
I am quite sure that they will be the first to start drone delivery on a mass scale inone place or another.
I don't see how amazon doesn't surpass any of its competition. Their partnerships and business decisions are incredibly beneficial and successful for the company whether you like them or not. Can't bet against Bezos.
They both have a monopoly on the market that really makes me mad. Less dependence on these these big box stores and more on local support would be ideal, but most people prefer their conviences. Thanks 🐓🐓
a monopoly means that they are the only option in the market, and right now that isn't the case in the US- there is still competition out there like target, dollar stores, trader joes, farmers markets etc, many other options. :) thx for stopping by!
Perhaps I used the term monopoly a little too freely. I think you understand my point about the convience factor. It is not like those smaller stores are looking to compete in marketplace delivery services. Always glad for a response. 🐓🐓
I agree, I stopped shopping at Whole Foods as soon as it was eaten up by Amazon. I don't want to be supporting a middle man corporation that destroys any opportunities for small businesses.
I was so looking forward to the new Whole Foods store being built here until Amazon decided to buy them. So much for that! 🐓🐓
Amazon accepts food stamps
Amazon will win
People love convinece , and people are lazy , and for that reason I feel as if amazon will top most markets
I think Amazon would take over Walmart one day.
Thank you for sharing this market information
They are both bad because they are a big exploit company
I dislike Walmart because of the way they treat their employees. So I would always prefer to go to Amazon if I ever bought groceries online, which I don't. I just love going to the grocery stores or farmers' markets to buy my groceries in person. It's so satisfactory and so much fun. I don't know if going online would be the same. :)
These two giants have monopolized a large portion of the retail market. The only reason amazon pays their workers more is because they don't have to maintain a storefront, it's much more automated. However recently even some of the Amazon employees are being replaced by machines (drone delivery/robotics).
We denied the growth of so many small businesses because there was no cap for these giant corporations. Using their profits, they can invest in bulk deals to get the product cheaper then their competitors. Amazon has a huge advantage, they also own Twitch which has become a massive market. And some people in North America have became so lazy going to the store is the ultimate struggle so they'd rather order everything.
these businesses grow to the size that they do because of support from the consumer, if people stopped shopping there then they wouldn't have as much success as they do. There are also many others invested in the retailer space as well,costco, krogers, target, HEB, etc. Walmart and Amazon might have a larger market share but they don't have a monopoly. They might treat employees badly, but surely there are disgruntled employees to be found at just about any business location. If people are free then their success shouldn't be capped 😱
Very good information brother, you as always you are a big. A big greeting from my @ joserc.vzla
I don't really want to buy most of my groceries online simply because I enjoy shopping at local butchers and fruit stands.
Walmart has a solid shopping experience, so I go there, of course, and I'm a bit of an Amazon fan (Overstock is currently catching my though), but nothing beats the personalized local shop.
I've written a post on the late, great Chuck Berry's music. It's pretty musical. :)
I would prefer the store
I though amazon bought out whole foods to have its own store fronts?
My vote goes still for Walmart. I'm one who wants to read the labels while in the store. That is just me. I never count out the amazon powerhouse but would tend to lean to a local grocery store over online shopping.
Amazon is the name that has gained a lot of trust since its inception and people will love to be with it without any argument whatever sector it enters into.
wow Very interesting Really beautiful work, ThankS you for sharing