Walmart Inc.’s first-quarter results, which include 37% growth in e-commerce sales, show the retail giant is taking e-commerce share from its strongest online competitor: Amazon.com Inc.
Some analysts saw Amazon’s move to cut delivery times in half as an effort to stay ahead of competitors, who have improved their e-commerce offering due to the threat of the “Amazon effect.”Neil Saunders, managing director at GlobalData Retail, says Walmart is taking share from Amazon. Walmart executives also talked up the use of its stores as a way to close the last-mile gap of getting merchandise to customers. By year-end, the company expects to offer same-day grocery delivery at 1,600 stores and grocery pickup from 3,100 locations.
“With around 35% of Walmart.com shoppers doing ‘some,’ ‘most’ or ‘all or almost all’ of their grocery shopping online, they are more likely to be ‘full-basket’ shoppers of the kind we see in bricks-and-mortar grocery stores,” the Coresight report said.Certainly, Amazon’s lead in e-commerce is a solid one that’s bolstered by the 100 million-plus Prime members.
“As for tariffs, potential impact on Walmart and its shoppers is limited by its food business, and we also believe Walmart has the wherewithal both financially and via its vendor relationships to minimize the impact on both itself and its shopping base.”
This just means people are getting lazier and fattier
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