Walmart invests USD 9 billion in revamp; Amazon’s grocery sales spike

As Walmart and Amazon continue to battle for their share of Americans’ grocery purchases, both appear poised to capture significant grocery and seafood sales in the near future.

Walmart, which operates more than 4,600 stores in the U.S., invested more than USD 9 billion (EUR 8.5 billion) in the past two years to upgrade 1,400 U.S. stores across the country. The retailer celebrated the re-grand opening of 117 stores across the U.S. in late October, the result of an investment of more than USD 50 million (EUR 47 million) in stores in 30 states, according to Walmart Senior Vice President of Realty Hunter Hart.

The revamped stores include larger online grocery pickup and delivery areas “to accommodate growing demand,” the retailer said, along with new grab-and-go sections for quick meal and drink options.

Walmart’s U.S. net sales rose 5.4 percent to USD 110.9 billion (EUR 104.2 billion) in its second fiscal quarter of 2024, as it gained market share in grocery with “strong unit growth,” the retailer said. Its U.S. e-commerce sales surged 24 percent, driven by pickup and delivery.

Similarly, Amazon’s net sales rose 13 percent to USD 143 billion (EUR 136 billion) in the third quarter of 2023, and sales increased 11 percent in North America. It owns the Whole Foods supermarket chain, which operates 505 locations across North America.

“Amazon soared past expectations in the third quarter,” Insider Intelligence Analyst Zak Stambor said in a statement emailed to SeafoodSource. “The retail giant’s slowdown last year appears to be in the rearview mirror as it has embarked on significant cost-cutting throughout this year and sharpened its focus on key growth areas, such as its high-margin online marketplace (and the services it can sell to those sellers) and advertising.”

Amazon’s quarterly earnings and its Prime Big Deal Days event, which Insider Intelligence believes generated USD 5.9 billion (EUR 5.6 billion) in US retail e-commerce sales, give the retailer “strong momentum as we head into the heart of the holiday season,” Stambor said.

Amazon’s grocery e-commerce sales are projected to increase to USD 40.9 billion (EUR 39 billion), or 22 percent of overall total e-commerce grocery sales in 2023, according to Insider Intelligence eMarketer data.

In 2024, they will rise to USD 48.4 billion (EUR 46 billion).

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