Market analytics company Jungle Scout has released its new 2022 Amazon vs. Walmart report, looking at how "consumer shopping preferences and investments in omnichannel strategies and tech are shaping the rivalry between these retail giants."
"Consumers prefer Walmart over Amazon for groceries. 56% of consumers turn to Walmart for groceries, compared to 15% who prefer to buy them from Amazon."
"Consumers turn to Walmart for affordability. 43% of consumers say product prices are the main reason they shop at Walmart over Amazon, followed by familiarity with products."
"Consumers prefer to shop on Amazon for electronics, books, and clothing. And they prefer to shop at Walmart.com for groceries, medicine, and cleaning supplies."
"Amazon is still the dominant ecommerce platform. 75% of U.S. consumers have purchased from Amazon recently, compared to 43% who have shopped on Walmart.com."
- KC's View:
In other words, Amazon still has a long way to go when it comes to gaining any sort of dominance - or even parity with Walmart - in the grocery business.
Which doesn't mean it can't. It just means it hasn't done it yet. But I agree with really smart people out there who believe that Amazon's grocery business is just one great executive away from becoming a viable threat.
One other thing … this lack of dominance in grocery (which also is highlighted by the market share numbers cited in the proposed Kroger-Albertsons deal) will be one of factors that Amazon will cite when fighting against any efforts to break the company up.