Money & The Economy

Walmart vs. Amazon: 4 Factors Consumers Consider When Online Grocery Shopping

Despite rising competition, Walmart remains the largest retailer in the world. By a wide margin, more people purchase groceries in-store/online from Walmart than other leading food retailers and supermarkets, although Amazon is the online grocery purchasing leader, according to market research firm Packaged Facts in U.S Grocery Market Focus: The Walmart Food Shoppera new report that’s first in a four-part series on Walmart spanning grocery & consumables, pets products, and financial services.

Grocery Retailing Growth for Both Walmart and Amazon

Packaged Facts estimates that 59% of grocery shoppers have purchased groceries from Walmart in last 3 months, with 58% purchasing in-store and 5% purchasing online. Comparatively, about 9% of grocery shoppers have purchased groceries online from Amazon.

Packaged Facts also reveals that among Walmart’s food retail competitors, Amazon grew usage penetration at the fastest rate from 2014 to 2018. However, more than half of Amazon shoppers also purchased something from Walmart in the last three months, up significantly since 2014. While overlap with Walmart increased, Amazon was the only retailer to grow usage penetration at a higher rate.

Factors Most Important to Choosing Online Grocery Provider: Walmart Vs. Amazon

In U.S Grocery Market Focus: The Walmart Food Shopper, Packaged Facts identifies four clear-cut differences that emerge between the Walmart and Amazon online grocery loyalist. They are:

  • Price factors: Those who use Walmart most to purchase groceries online are more likely than other online grocery purchasers to cite lowest prices and price matching as important to choosing an online grocery provider. In comparison, the Amazon-loyal online grocery purchaser is more apt to cite free delivery.
  • Convenience factors: The loyal Walmart online grocery purchaser is more likely than average to cite website grocery descriptions, customer service, and one-stop shopping as convenience factors that are important when choosing an online grocery provider. The Amazon purchaser is less likely than average to cite any of the listed convenience factors as important, but especially website grocery descriptions, customer service, same-day delivery, and one-day delivery.
  • Brand/selection: The Walmart online grocery purchaser is more apt than average to cite high-quality store brands and fresh food variety as important brand and selection factors influencing the choice of online grocery provider and less apt to cite organic/natural variety. The Amazon purchaser is more likely than average to cite bulk purchasing and the ability to obtain unique, exclusive products.
  • Online ordering factors: Compared to the loyal Amazon online grocery purchaser, the Walmart purchaser is more apt to cite online payment options and in-store pickup/curbside service as important to choosing an online grocery provider. However, subscription services are more likely to be important among Amazon purchasers.

Carl Fox

Carl Fox is the senior money and finance writer for Conservative Daily News. Follow him in the "Money & The Economy" section at CDN and see his posts on the "Junior Economists" Facebook page.

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