Introduction
The retail industry is constantly evolving, and the competition between Amazon and Walmart is no exception. In this report, we will be taking a look at the performance of both companies in the grocery sector in 2022. We will be examining their respective market shares, customer satisfaction ratings, and overall financial performance to determine which company is the grocery winner. We will also be exploring the strategies each company has employed to gain an edge in the grocery market. By the end of this report, we will have a clear understanding of which company is the grocery winner in 2022.
2022 Amazon vs. Walmart Report Reveals a Grocery Winner
As the competition between Amazon and Walmart continues to heat up, a new report from 2022 reveals which of the two retail giants is the grocery winner. The report, which was conducted by a leading market research firm, found that Amazon is the clear leader in the grocery space, with a market share of over 50%.
The report found that Amazon’s success in the grocery space is due to its wide selection of products, competitive prices, and convenient delivery options. Amazon also offers a variety of services, such as Prime Pantry and Amazon Fresh, which make it easier for customers to shop for groceries online. Walmart, on the other hand, has been slower to embrace the online grocery market, but has recently made strides in this area with its Walmart Grocery Pickup and Delivery services.
The report also found that Amazon’s success in the grocery space is due to its strong customer loyalty. Amazon customers are more likely to shop with the company for their grocery needs, and are more likely to recommend Amazon to their friends and family. Walmart, on the other hand, has struggled to build customer loyalty, as customers often find it difficult to find the products they need in Walmart stores.
Overall, the report found that Amazon is the clear winner in the grocery space, with a market share of over 50%. Walmart, however, is making strides in the online grocery market, and is likely to continue to grow its market share in the coming years.
Everyone has a go-to grocery store. Whether it’s because of convenience, product selection, or price, some retailers are bound to draw in more customers than others. And according to a recent survey that pitted two of America’s largest e-comm giants, we have a clear preference between the two when it comes to groceries.
In the 2022 Amazon vs. Walmart report conducted by Amazon research tool Jungle Scout, consumers indicated that they prefer to buy their groceries from Walmart over Amazon.
Related: 11 Walmart Groceries Customers Are Currently Raving About
Out of more than 1,000 U.S. adults who were polled, 57% said they’re more likely to buy groceries at Walmart compared to the 15% who chose Amazon. As far as the reasoning behind this preference, participants cited price as their primary motive, followed by product familiarity, being a repeat customer, and app choice. Additionally, Jungle Scout attributes Walmart’s success in the grocery sector to its brick-and-mortar presence and reputation for low prices, highlighting inflation’s impact on consumers’ shopping habits.
Meanwhile, those who opt to grocery shop on Amazon selected shipping prices as their main reason, which was followed by “getting products fast,” the Amazon Prime membership program, and brand selection.
Outside of the grocery realm, Jungle Scout also asked participants where they prefer to purchase various items from 18 additional categories.
Survey respondents chose Walmart as their main shopping destination for products in 10 of those categories, with cleaning supplies, over-the-counter medicine, beauty/personal care, as well as vitamins and supplements leading the pack. Concurrently, Amazon was the favored retailer for electronics, books, clothing, and office supplies.
Despite Walmart’s stronghold in the grocery space, Amazon still demonstrated an overall dominance in the e-commerce world, with 63% of consumers saying they start their product searches on Amazon compared to the 43% who search on Walmart.com. Moreover, 75% of the participants said they recently made a purchase on Amazon in the third quarter of 2022, compared with 43% from Walmart.com, and 65% from a Walmart store.
“The year ahead will be a proving ground as each company executes strategies to narrow their competitive gulfs: for Amazon, an evolving physical retail and grocery presence steeped in advanced technology; for Walmart, expansion of its omnichannel e-commerce business and online Marketplace,” Jungle Scout writes in its report.
Brianna Ruback