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Walmart Keeps Gaining Ground Against Amazon

I am not a fan of Amazon these days, so anyone who can offer serious competition is welcome:

The fight between Walmart and Amazon — one of the hottest stories in the retail industry — is only getting juicier, and Walmart’s Q2 results offer proof.

Walmart, the world’s largest retailer, saw its shares surge 10% on Thursday as Walmart U.S., more than three-fifths of the company’s total business, posted its best quarterly comparable sales in more than 10 years. Visits to Walmart’s brick-and-mortar locations rose 2.2%, and average customer spending per transaction also climbed.

Strong demand for Walmart’s fresh-food categories drove its best comparable grocery sales in nine years. But key to all those growth numbers is this: the better-than-expected 40% jump in online sales. While e-commerce contributed only about one percentage point to the 4.5% total U.S. same-store sales growth, it had a far wider ripple effect.

Yes, Amazon.com may be the king of e-commerce and may be attracting more consumers than ever, with studies showing it’s now where many consumers go to search for products. But Walmart is showing that its sizable store fleet, which the company has said is within 10 miles of 90% of the U.S. population, is a powerful weapon. Walmart had nearly 4,800 U.S. stores at the end of July, including nearly 3,600 supercenter stores. Amazon’s Whole Foods store count is below 500.

Walmart’s efforts have given it a lead against other online rivals, like Ebay. A Rakuten Intelligence study released in April showed that while Walmart’s online sales in the U.S. were still only a sliver of Amazon’s U.S. sales, Walmart has picked up online share to become a “top alternative” to Amazon for consumers.

Here’s the evidence: Amazon’s online U.S. market share has risen to 46% in 2017 from 24% in 2012 while Walmart’s also rose to 4.3% from 2.9% during the same period to take the No. 3 spot, up from No. 4, according to Euromonitor.  EBay, while still No. 2, saw its share decline to 7.4% from 8.7%.

Doomberg

Written by Doomberg

I am Doomberg, one of the original founding members of Sparta Report, and have been here since the beginning. I am an insatiable news junkie and enjoy reading and writing about the US territories, the Caribbean, video games, smartphones, and of course conservative politics in general.

I also really like pictures of gas stations and claim full responsibility for the silly gas station motif. I'm presently trapped behind enemy lines in a blue state with no hope of escape! The ride never ends.

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