Walmart beating Amazon at its own game
Walmart is beating Amazon at its own game — delivery — according to new research from financial services company Citigroup.
According to Yahoo News, Citigroup conducted a survey asking 2,000 U.S. consumers, more than 200 supermarket managers and Citigroup’s global consumer analysts about the current state of online grocery. Citigroup Analyst Gregory Badishkanian wrote in a note to clients that its analysis found that consumers most frequently indicated that Walmart had the best delivery among food retailers.
“Additionally, Walmart delivery appeared to be the most accessible, appearing most frequently on respondent rank orders,” Badishkanian said in the note.
According to the research, 29% of respondents said Bentonville, Ark.-based Walmart had the best delivery compared to 25% for Seattle-based Amazon. “Your local grocery store” was third at 11%, followed Cincinnati-based The Kroger Co. with 8% and Minneapolis-based Target with 6%.
Citigroup’s research also revealed that Walmart and Amazon are neck and neck in market share for online grocery delivery, which includes click-and-collect. Citigroup asked respondents: "Over the last 12 months, where have you ordered groceries online?" Amazon collected 24.6% of the vote, and Walmart collected 22.5%.
Yahoo News stated that Badishkanian also wrote in his note that Kroger and other retailers are potentially challenging Amazon and Walmart for market share in grocery delivery because of the investments they’ve made in the segment. Badishkanian said Kroger has the highest click-and-collect penetration among traditional grocers.
“Traditional food retailers concluded that the most successful online model will be one that offers groceries through all channels and allows the consumer to choose how he/she wants to interact with the retailer,” Badishkanian said.
Walmart recently announced that it would begin offering next-day delivery on orders over $35 less than three weeks after Amazon said it would cut its Prime program's default shipping speed to one day.