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Walmart's grocery business is winning over more affluent shoppers

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As its online grocery business grows, Walmart is seeing pricier items like choice cuts of meat and organic fruits and vegetables in customers' baskets.

Walmart's online grocery orders have been a major driver in its e-commerce business.

As its online grocery business grows, the company is seeing pricier items like choice cuts of meat and organic fruits and vegetables in customers' virtual baskets, said John Furner, president and chief executive officer of Walmart U.S. The Bentonville, Arkansas-based retail giant has an expansive footprint across the U.S., but has tended to have stronger loyalty among shoppers in suburbs, small towns and rural areas. It bought Jet.com for $3.3 billion in 2016, with the hopes of winning over the e-commerce company's customers that tended to be younger, more affluent and urban. Jet.com has been wound down, but the company has bought other brands to expand its customer base — such as menswear company Bonobos.

Furman said Walmart's range of groceries, including prime beef and organics, has helped draw in different kinds of customers. Once they buy groceries, he said those new or more affluent customers may purchase an item in another department of the store or part of Walmart's website.

 

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