Surprise: Walmart is Outpacing the rest of the eCommerce World
While much of the attention in the eCommerce space has been put on brands that are online-only like Amazon, Walmart.com has been investing heavily to grow its digital presence, buying sites like Bonobos, building out a third-party marketplace and boosting the omnichannel experience for customers..
The hybrid retailer (online and off) had a recent stock boost of 9% that was due, in part, to a reported 40% increase in eCommerce. And Jumpshot data shows that across 23 product categories in Q2 alone, Walmart saw an even larger growth number: 70%.
What’s behind this impressive growth?
Taking on the Giant
Shockingly, the brand is steadily gaining market share on Amazon, increasing from 3.9% to 5.1% of all purchases across 23 major categories, an increase of about 31%. (Q2 2017 to Q2 2018)
Our data also showed that Amazon has declined in terms of overall market share, despite its own growth of around 20% in terms of sales. The reason? The eCommerce market at large is growing at a faster pace than Amazon.
Women’s Clothing is one example of an area where Amazon saw a major decline in Q2 (-30%) while Walmart saw a 20% increase. This could be due to Walmart’s bold move recently to launch an exclusive Lord & Taylor online store to expand beyond the discount market.
Online Grocery Shopping: The Next Big Thing for Walmart?
While Walmart is thriving in several categories, Food is one place where Walmart is killing it.The brand saw a 52% increase in market share Q2 (interestingly, the only other brand to increase share was Kroger with 20%. All others lost share.)
This could be due to Walmart’s recent push for more cities (100 total) offering grocery delivery. Amazon, naturally, is Walmart’s major competitor here, since Amazon’s Prime Now is thriving (especially for Prime members who pay nothing for delivery).
But the data tells a different story from what you might expect.
While 59% of shoppers have bought groceries from Amazon during the past year, compared to just 26% from Walmart, nearly 22% of Walmart’s online shoppers said they purchased “most” or “all or almost all” of their groceries from the retailer, compared to 12% of Amazon shoppers who said the same. So while Walmart hasn’t beat out Amazon just yet in grocery delivery, its customers are relying on Walmart more to deliver all of their needs.
Still, Amazon’s driving way more online transactions than anyone else, an order of magnitude more than Walmart is, 33.6 million transactions in Q2 compared to Walmart’s 3.1 million.
Watch These Brands Carefully in Coming Months
Walmart is clearly no longer happy being solely brick-and-mortar focused, and is determined to take on Amazon from many angles. Recently, Walmart and its subsidiary Jet.com purchased several trendy brands like ModCloth and Bonobos, which appeal to a younger audience dedicated to fashion. It will be interesting to see if Walmart can manage to pull off its transformation in total.