Walmart or Amazon? 4 factors grocery shoppers consider

Packaged Facts research finds different priorities among online shoppers who prefer Walmart or Amazon over the other retail grocery site.

Despite rising competition, Walmart remains the largest retailer in the world. By a wide margin, more people purchase groceries in-store or online from Walmart than other leading food retailers and supermarkets, although Amazon is the online grocery purchasing leader, according to market research firm Packaged Facts in U.S Grocery Market Focus: The Walmart Food Shopper. This is the first of four reports on Walmart that will look at grocery and consumables, pets products, and financial services. 

Packaged Facts estimated that 59 percent of grocery shoppers have purchased groceries from Walmart in last three months, with 58 percent purchasing in-store and 5 percent purchasing online. About 9 percent of grocery shoppers have purchased groceries online from Amazon.

Packaged Facts also revealed that among Walmart's food retail competitors, Amazon’s penetration grew most quickly between 2014 and 2018. However, more than half of Amazon shoppers also purchased something from Walmart in the last three months, up significantly since 2014.

In the report, Packaged Facts identified four clear-cut differences that emerge between the Walmart and Amazon online grocery loyalists:

  • Price. Consumers who use Walmart most to purchase groceries online are more likely than other online grocery purchasers to cite lowest prices and price matching as important to choosing an online grocery provider. In comparison, the Amazon-loyal online grocery purchaser is more apt to cite free delivery.
  • Convenience. The loyal Walmart online grocery purchaser is more likely than average to cite website grocery descriptions, customer service and one-stop shopping as important convenience factors. The Amazon purchaser is less likely than average to cite any of the listed convenience factors as important, but especially website grocery descriptions, customer service, same-day delivery, and one-day delivery.
  • Brand/selection. The Walmart online grocery purchaser is more apt than average to cite high-quality store brands and fresh food variety as important brand and selection factors that influence their choice of online grocery provider; they are less apt to cite organic/natural variety. The Amazon purchaser is more likely than average to cite bulk purchasing and the ability to obtain unique, exclusive products.
  • Online ordering. Compared to the loyal Amazon online grocery purchaser, the Walmart purchaser is more apt to cite online payment options and in-store pickup/curbside service as important to choosing an online grocery provider. However, subscription services are more likely to be important among Amazon purchasers.

Source: Packaged Facts

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