Walmart Is Crushing This Competitor at Groceries

Retail titans Walmart and Amazon are often clashing in competition over which will capture the bigger share of U.S. household spending. For many things, like electronics, appliances, sporting goods, hobbies, and books, the online behemoth that is Amazon rules. When it comes to buying groceries, however, Walmart holds a massive edge over its competitor right now.

While Amazon has been trying to catch up to Walmart's grocery sales over the past few years, the average American household still spends roughly 10 times as much on food and beverages at Walmart, according to a new data comparison from PYMNTS. The report indicates that Walmart's net for groceries totaled $264 billion in sales in 2021, compared to Amazon's $27 billion.

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The grocery problem hasn't been lost on Amazon, which acquired Whole Foods in 2018. At the time, the acquisition made many chains nervous, according to Jon Springer, executive editor of the trade publication Winsight Grocery Business.

The sale "was received as a monumental blow in the grocery industry," Springer told Slate Magazine in an interview. "Stock of all the conventional supermarkets and the Walmarts of the world just got devastated by this one announcement."

Walmart inhome delivery service — Walmart

Because Amazon had been known to dominate wherever it decides to go, it's no wonder the move looked foreboding to some. However, since the acquisition, the share of food and beverage spending won by Amazon has shifted only between 1.7% and 2.1% — showing a difference of only .4%, according to PYMNTS.

Walmart has been doubling down on its online "InHome" grocery delivery service, which was projected to reach 30 million U.S. households this year. The service goes a step further from front door delivery by allowing customers to place grocery orders online, then receive their deliveries by having a Walmart associate enter their home by way of a smart lock, according to TechCrunch.

While Amazon has been gaining on Walmart in other sectors, like health and personal care, it seems like the retail giant has a way to go before it becomes a real contender in the way of food for America's chief grocery, Walmart.

Putting together a grocery list? Check out: Costco, Walmart, and Kroger Are Putting Purchase Limits on These Items