Walmart and Amazon are constantly vying for the top grocery spot. Both companies are moving closer to one another, as Walmart attempts to make moves in the e-commerce space and Amazon opens brick-and-mortar outlets. Now, that gap may be closing even more, as Walmart has begun to compete with Amazon on price and delivery speed.
Walmart's online grocery prices are edging closer to Amazon, with only a 1.8% average difference between the two retailers, according to research from Profitero. Its report, Price Wars: Grocery, Household & Beauty, found Target and Jet.com were both, on average, about 6% higher in grocery than Amazon, while Walmart matched Amazon prices on 53% of all CPG products studied, and 67% in grocery.
However, Amazon is still seeing success in attracting the value consumer with its Amazon Prime Pantry program, as prices on products listed in the Prime Pantry program average about 11% less than those found at other retailers. It also maintained its price lead over Walmart in beauty, but Walmart's Jet.com subsidiary is close behind with only a 1.4% price gap. Other retailers in the beauty category still lag far behind, though, with Target's prices almost 7% higher, and Walgreens.com and CVS.com about 30% higher.
Price isn't the only arena where Walmart hopes to best Amazon. Its Sam's Club warehouse store began offering same-day delivery of groceries and other items in Austin and Dallas-Fort Worth, TX, and St. Louis, MO, in partnership with Instacart. Sam’s Club hopes to expand the service throughout 2018, and beyond.
The service will allow non-members to place orders and receive the member price, reported Fortune (Feb. 27). When asked whether this could reduce the incentive to get a Sam’s Club membership, a spokeswoman commented, as more people are exposed to Sam’s, more “will want to become members.”
Fortune notes Walmart has begun to shift its focus from just curbside pickup for its warehouse chain to e-commerce, in order to gain a leg-up on rival Costco. Sam's Club also recently launched free shipping for its premium members, and parent Walmart acquired delivery company parcel in late 2017.
While Whole Foods is gaining ground in the grocery market, it’s taking longer than expected, as the grocer has to overcome its pricey reputation, among other barriers, before seeing real impact.read more
Jennette has been with The Food Institute since 2013. As Marketing Director, she is responsible for promoting all Food Institute books, seminars and webinars, as well as writing and editing the Food Institute’s annual publications, such as Food Business Mergers & Acquisitions, The Food Industry Review and The Almanac of the Canning, Freezing, Preserving Industries. Additionally, she writes for and edits the daily news update, Today in Food, and contributes to the weekly Food Institute Report. She has a background in non-profit and environmental marketing, programming and writing, and graduated from Rowan University in 2012 with a degree in Communication Studies.
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