Walmart is dominating the U.S. online grocery market, according to new research out this week from the analysts at Second Measure. The nationwide retailer today offers grocery pickup and delivery in nearly every U.S. state, and had 62% more customers in June than its next nearest rival. And no, in this case, that rival is not Amazon — it’s Instacart.
Like Walmart, Instacart also operates across the U.S., offering both pickup and delivery services.
The same is true for Amazon Prime Now and Peapod, while other competitors are limited to delivery only — like Target-owned Shipt and FreshDirect. Meanwhile, AmazonFresh offers delivery, plus pickup in Seattle.
While Walmart has been steadily capitalizing on its existing brick-and-mortar footprint and proximity to its customer base, Amazon’s strategy in the online grocery space appears to be one of confusion. The retailer is competing against itself by offering two services — Amazon Prime Now and AmazonFresh. The latter, an older service operated before Amazon’s Whole Foods acquisition, is actually one of the few online grocery businesses in decline, the report discovered. Founded over a decade ago, AmazonFresh has only grown to 15 U.S. cities and shut down in others.
This June, AmazonFresh sales were down …read more