Walmart and Amazon are on the top. These are the most powerful competitors when it comes to retail spending. The apps, mobile devices, and online payment tech made online shopping efficient. Physical shopping has become friction-filled. Consumers are looking for convenience. This made shopping a hybrid experience. It has blurred the line between online and physical commerce.
The retail giants are moving into one another’s forte. Amazon has moved into Amazon Fresh, Whole Foods, and Amazon Subscribe & Save. Walmart moved into eCommerce. Both of them expanded into the retail-adjacent areas. To be more particular, it is the health and wellness sector.
Walmart and Amazon are establishing themselves as leaders. They are offering access to everyday needs. Also, these 2 brands are competing for the discretionary income of the consumers.
Inflation took a toll on customer spending for the essentials like healthcare products and groceries. Also, it impacted discretionary spending.
By the end of Q2 2022, Amazon accounted for consumer retail spending by 6.5%. It included 3.1% of the entire consumer spending. Walmart outperformed it with 7.1% consumer retention spending. The platform held 4.4% of consumer retail spending in Q1 2019. It increased in Q4 2020 and became 8.1%. Walmart held 7.7% of consumer retail spending in Q1 2019. It reached 8.4% in Q2 2020. In Q2 2022, Walmart’s share went to 7.1%.
Amazon holds 14% of discretionary spending. Walmart, on the other hand, only holds 4.9%. And it is taking the lead in every discretionary spending. It includes appliances and electronics, home furnishings, apparel, hobbies, music, etc. Amazon held a 14% share by Q2 2022. During the pandemic, it reached 17% in Q4 2020. But Walmart is losing its grounds in consumer discretionary spending. It held a 5.6% share in Q1 2019. And it went down to 4.9% by Q2 2022.
Amazon is coming up with the latest techniques and strategies to attract customers. It facilitates seamless service to the customers. Also, Walmart is all set for a comeback.