More Consumers Turning to Walmart for Groceries
September 12, 2024
High grocery prices across the U.S. have led more households to turn to Walmart, a brand famous for low prices, for their everyday grocery needs—and they are placing their orders online.
According to analysts at U.S. eGrocery Market Share, 37% of online food sales are now purchased through Walmart—a trend driven by inflation, rapid growth in grocery delivery services, and Walmart’s concerted efforts to expand its e-commerce presence.
In recent years, Walmart has made significant strides in e-commerce, emerging as a formidable competitor to industry leader Amazon. One key factor driving Walmart’s e-commerce success is its vast brick-and-mortar presence, creating an “omni-channel” shopping experience for consumers. This model allows for both quick and cost-effective same-day delivery services and convenient store pick-up options for online orders.
Groceries are one of the industries that have been most transformed since the COVID-19 e-commerce boom. Online grocery sales nearly tripled during the pandemic years, reaching $95.8 billion in 2023. Analysts expect groceries to surpass apparel and accessories as the largest e-commerce category by 2026.
Walmart looks to capitalize on high prices driven by inflation and the growing preference for online grocery shopping. The Walmart Plus membership, starting at $12.95 per month, allows for free unlimited deliveries of groceries and other items from Walmart stores at in-store prices. Plus members can choose a delivery time between 7 AM and 8 PM and are offered free returns—Walmart will even send someone to pick up the return directly from their house.
Unsurprisingly, many smaller supermarkets are finding it hard to keep up with the low prices and convenience offered by Walmart. According to reports from Brick Meets Click/Mercatus Grocery Shopping, Walmart surpassed supermarkets such as Safeway, Aldi, and other smaller chains in online grocery shopping growth in 2022. In 2024, supermarkets collectively continued to lose their share of online grocery sales, with just 27.3% of the market compared to Walmart’s 37% tallied midway through the year.
Experts have long held that convenience is key for e-commerce success, and Walmart appears to be leveraging its vast physical infrastructure to ensure that online grocery shopping combines the ease of online shopping with physical practicality—all while maintaining low prices.