Walmart Beating Amazon in a Business Worth $35 Billion
UNITED STATES - The great grocery race is a phrase we may continue to hear for years to come. As Walmart and Amazon continue their grocery battle—fighting with virtual reality, private-label items, and two-hour delivery—it seems that Walmart has squeaked ahead of the e-tailer in one area: click-and-collect. For those unfamiliar with the concept, click-and-collect is a brick-and-mortar supermarket’s bread and butter.
In an op-ed piece published on Bloomberg, the news source outlined the ways in which curbside pickup—a business that will account for $35 billion in sales in the United States by 2020—is being embraced by retailers like Walmart and Target. Amazon, however, has fallen behind on this particular model of grocery delivery.
A report from Cowen & Co. detailed the ways in which Wamart’s grocery pickup is contributing to the retailer’s overall U.S. sales growth. In the report, the analysts forecast Walmart’s U.S. comparable sales to jump 2.8 percent for the current fiscal year over the prior year, and that grocery pickup will account for between 0.9 and 1.3 percentage points.
Currently, Walmart’s grocery pickup program is available at 2,100 stores and is estimated to be in 3,100 by the end of this year.
Amazon certainly isn’t sitting idly by while click-and-collect continues to grow. Although the click-and-collect format doesn’t necessarily make sense for Amazon, it still offers pickup options with its AmazonFresh Pickup in Seattle—a drive-up spot for customers looking to pick up groceries.
Whichever way the click-and-collect format will come down, it’s no secret that Amazon and Walmart will continue to duke it out. Will Walmart, as Bloomberg suggests, continue to pull ahead of Amazon? Will Amazon work to adapt this program in such a way that benefits its end game?
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