Walmart as Omnichannel Competitor

Table of Contents

• Executive Summary
  • Introduction
    • Report Scope
  • Retailer Omni-Channel Sales and Usage Trends
    • Internet-Only and Omni-Channel E-Commerce Forecast
    • Amazon E-Commerce Share
    • More Consumers Purchasing Online and Making More Purchases Online
    • Online purchasing habits of younger consumers help foretell the future
    • In-Store Retailing Is Here to Stay
    • Home Delivery Rules The Roost
    • Click-and-Collect Gains Traction
    • Leading Click-and-Collect Retailers
    • The Click-and-Collect Connection To In-Store Purchasing
    • Walmart Click-and-Collectors
    • Subscription Services Take Hold
  • Walmart U.S. Trends and Innovation
    • Performance Trends
    • E-commerce and Click-and-Collect Forecast
    • Omni-Channel Walmart Purchases, by Retail Category
    • Leveraging In-Store Services
    • Private Label Strength
    • Health and Wellness: On The Cusp of A Growth Curve?
    • Store Formats: Steroids and Stealth
    • Technology Innovation
    • Omni-channel Innovation
  • Sam's Club Trends and Innovation
    • Performance Trends
    • Omni-Channel Product Purchases, by Retail Category
    • Omni-Channel Purchasing Methods
  • Major Retailers: Competitive Analysis
    • Walmart Is Leader by Far
    • In-Store/Online Purchasing Trends Over Time
    • In-Store Purchasing Trends Over Time
    • Major Retailers: Cross-Usage Of Amazon and Walmart Over Time
    • Following the Online Purchaser
    • Amazon, Target and Walmart Online Purchasers: 2015 vs. 2018
• Walmart Inc.
  • Largest Retailer in the World
    • Sales Momentum
    • Omni-Channel Pivot and Innovation
    • The E-Commerce Landscape in 2020
    • In-Store Retail: Down But Hardly Out
    • Smart Cart Pricing Technology
    • Branding Shift Underway?
    • Challenging Amazon
• Retailer Omni-Channel Sales and Usage Trends
  • E-Commerce Growth vs. Overall Retail Sales Growth
    • Projecting from Census Data
      • Table Total Retail Sales vs. e-Commerce Sales, 2008-2017 (in billions and percent of total)
      • Table Total Retail Sales vs. e-Commerce Sales, 2016-2020P (in billions and percent of total)
    • Internet-Only vs. Omni-Channel E-Commerce Sales Growth
      • Table E-Commerce: In-Store, Direct, Internet-Only, and Omni-Channel Sales, 2011-2017 (in billions, % change, and sales shares)
      • Table E-Commerce: In-Store, Direct, Internet-Only, and Omni-Channel Sales, 2016-2020 (in billions, % change, and sales shares)
    • Amazon Share of E-Commerce Sales Over Time
      • Table Amazon U.S. Gross Merchandise Sales: Direct Sales and Third-Party Sales, 2014-2020 (in billions)
      • Table U.S. E-Commerce and Amazon U.S. Gross Merchandise Sales, 2014-2020 (in billions)
    • More Consumers Purchasing Online and Making More Purchases Online
      • Table Retail Purchasing Patterns: In-Store, Online, and Mobile, 2014-2018 (in percent of adults and frequency of online purchasing)
      • Table Omni-Channel Purchasing Patterns for Top Five Retail Categories, 2014-2018 (in percent of adults and online to in-store ratio)
      • Table Omni-Channel Purchasing Patterns for Sixth Through Ninth Largest Retail Categories, 2014-2018 (in percent of adults and online to in-store ratio)
    • Online Purchasing Habits of Younger Adults Help Foretell the Future
      • Table In-Store, Online, and Mobile Purchasing Patterns: By Age Bracket, 2014-2018 (in percent of adults and frequency of online purchasing)
    • Home Delivery Rules the Roost
      • Table Use of Home Delivery: Adults Overall vs. Online Purchasers, 2018 (percent)
    • Click-and-Collect Gains Traction
      • Table Use of Online Ordering with Pickup: Adults Overall vs. Online Purchasers, 2018 (percent using overall, same day, or subsequent pick-up)
    • Leading Click-and-Collect Retailers
      • Table Click and Pick Up: Retail Chain or Channel Used for Last Pick Up, 2018 (percent)
      • Table Click and Pick Up: Influence on In-Store Purchasing Behavior at Pick Up, 2018 (percent)
      • Table Click and Pick Up Influence on In-Store Purchasing Behavior: Walmart vs. Target, 2018 (percent)
    • Subscription Services Take Hold
      • Table Use of Online Subscription/Repeat Ordering Service: Adults Overall vs. Online Purchasers, 2018 (percent)
    • Demographic Analysis
      • Table Use of Click and Collect, Subscription Service, and Home Delivery: By Demographic, 2018 (percent)
• Walmart U.S.
  • Performance Trends
    • Table Walmart U.S. Net Sales, Units, Sales per Unit and Square Foot, and Comparable Sales Change, 2014-2018
    • Largest Retailer by Sales . . . Until 2022?
      • Table Walmart U.S. vs. Amazon Sales, 2017-2022 (in billions and percent change)
    • Walmart U.S. E-Commerce Sales Versus the Competition
      • Table Retail Sales and E-Commerce Sales: Walmart, Amazon, Costco, and Target, 2014-2017 (in billions and percent share)
      • Table Retail Sales Share and E-Commerce Sales Share: Walmart, Amazon, Costco, and Target, 2014-2017 (in billions and percent share)
    • Walmart U.S. E-Commerce Forecast
      • Table Walmart U.S. Total Net Sales, E-Commerce Sales, and E-Commerce Sales Share, 2015-2021 (in billions)
      • Table Walmart U.S. E-Commerce Sales: Click-and-Collect Grocery vs. Other, 2017-2021
  • Walmart Products and Services
    • Grocery, Heath and Wellness, General Merchandise
      • Table Walmart U.S. Net Sales, by Merchandise Category, 2014-2018
    • Omni-Channel Walmart Purchases, by Retail Category
      • Table Walmart Shopping Patterns: In-Store, Online, and In-Store/Online, by Retail Category, 2018 (percent)
      • Table Walmart General Merchandise and Health & Wellness Purchasers: In-Store vs. Online, by Retail Category, 2018 (percent)
    • In-Store Services Usage, by Type
      • Table Use of Walmart In-Store Services: By Types of Service, 2018 (percent)
    • In-Store Services Usage: Influence on Other Purchases
      • Table Walmart In-Store Purchasing by Retail Category: Adults Overall vs. Walmart In-Store Services Users, 2018 (percent)
      • Table Walmart In-Store Service Use by Service Category: Adults Overall vs. Walmart In-Store Product Purchasers, 2018 (percent)
  • Walmart Trends and Innovation
    • Private Label: A Shifting Strategy
      • Table Use of Walmart Private Label: By Brand, 2018 (percent)
    • Health and Wellness: On the Cusp of a Growth Curve?
    • Store Formats: Steroids and Stealth
      • Table Walmart U.S. Locations by Store Format Type, 2009-2018 (in number and share of total)
    • Small: Neighborhood Markets
    • Smaller: Walmart Express
    • Smallest: Walmart Pickup and Fuel, Walmart Convenience with Fuel, Walmart on Campus
    • Technology Innovation
    • How It Works
    • Consumer Interest
      • Table Influence of Dynamic Pricing Options on Consumer Purchase Decision: By Pricing Option, 2018
    • The Walmart App
    • Omni-Channel Innovation
• Sam's Club
  • Retailer Overview
    • Performance Trends
      • Table Sam's Club U.S. Net Sales, Units, Sales per Unit and Square Foot, and Comparable Sales Change, 2014-2018
    • Sam's Club Versus Club Store Competitors
      • Table Sam's Club, Costco, and BJ's Wholesale Club: U.S. Net Sales, Comparable Sales Change, and Units, 2013-2017
      • Table Sam's Club, Costco, and BJ's Wholesale Club: U.S. Private Label Sales, Grocery/Consumables Sales, and Membership Renewal Rates, 2017
    • Membership Structure Changes
    • Business Member Emphasis
  • Sam's Club Products and Services
    • Six Product Categories
      • Table Sam's Club U.S. Net Sales by Merchandise Category, 2014-2018 (in billions and share of total)
    • Omni-Channel Product Purchases, by Retail Category
      • Table Sam's Club Purchasers: In-Store, Online, and In-Store/Online: By Retail Category, 2018 (percent)
      • Table Sam's Club Food/Beverage and Consumables Purchasers: In-Store vs. Online: By Retail Category, 2018 (percent)
      • Table Sam's Club General Merchandise and Health & Wellness Purchasers: In-Store vs. Online: By Retail Category, 2018 (percent and category share)
    • In-Store Services Usage
      • Table Use of Sam's Club In-Store Services: By Service Offered, 2018 (percent)
    • Omni-Channel Innovation
      • Table Shopper Use of Sam's Club Omni-Channel Purchasing Methods, 2018 (percent)
• Major Retailers: Competitive Analysis
  • Usage and Usage Frequency Trends
    • Usage Trends
      • Table Shopper Penetration for Major Discount and Club Retailers, 2014-2018 (percent)
    • Frequency of Shopping and Purchasing Trends
      • Table Monthly Shopping and Purchasing Patterns: By Major Discount Retailer, 2014-2018 (percent)
      • Table Monthly Shopping and Purchasing Patterns: By Club Retailer, 2014-2018
  • Omni-Channel Purchasing Trends
    • In-Store and/or Online Purchasing
      • Table Walmart, Amazon, Target, Costco, Sam's Club, and Kmart: Percent of Shoppers Who Purchase In-Store, Online, or Both, 2014-2018
      • Table In-Store, Online, and In-Store/Online: Shopper Purchasing Patterns in Last 3 Months by Major Retailer, 2018 (percent)
    • In-Store Purchasing, by Retailer and Retail Category
      • Table Costco, Sam's Club, Target, and Walmart: In-Store Purchasing Patterns by Retail Category, 2018 (percent)
    • Major Retailers: Cross-Usage of Amazon and Walmart Over Time
      • Table Purchasing and Cross-Purchasing Patterns Among Major Retailers, 2014 vs. 2018 (percent and percent change)
    • Walmart and Sam's Club vs. Major Retailers, by Demographic
      • Table Shopper Profiles for Major Retailers: Usage, by Gender, Age, and HH Income Segments, 2018 (index)
    • Walmart and Sam's Club vs. Major Retailers: Top Designated Market Areas, Metropolitan Areas & County Size
      • Table Shopper Patterns for Major Retailers: Usage by Top Designated Market Area and Retailer, 2018 (index)
      • Table Shopper Patterns for Major Retailers: Usage by Metropolitan Area Grouping and Retailer, 2018 (index)
      • Table Walmart vs. Major Retailers: Shopper Patterns by County Size and Retailer, 2018 (index)
  • Following the Online Purchaser
    • Online Purchasers Tend to Have Higher Incomes, but the Gap is Closing
      • Table In-Store and Online Purchasing Patterns by Household Income, 2015 vs. 2018 (percent and index)
    • 2015 vs. 2018: Amazon, Target, and Walmart Online Purchasers, by HH Income
      • Table In-Store and Online Purchasing Patterns by Major Retailer: By HH Income, 2015 vs. 2018 (percent and index)
    • Amazon, Target, and Walmart Online Purchasers, by HH Income and Age
      • Table Amazon, Target and Walmart: In-Store and Online Purchasers Age 18-34, by HH Income, 2015 vs. 2018 (percent and index)
• Appendix
  • Methodology
    • Consumer Survey Methodology
    • Population Estimates
    • Table Indexes
    • Tables

Abstract

Walmart as Omnichannel Competitor

Packaged Facts views Walmart as better positioned than ever to grow along with e-commerce instead of fighting against it. While in-store retail overall has suffered punishing blows, silver linings exist. Among them are in-store services, which play a role in building loyalty among customers, regardless of whether they buy online or in-store and the role physical retail locations play in building loyalty from the omnichannel purchaser. Both are Walmart strengths. Walmart’s foray into dynamic pricing also has potential to boost sales. Assortment breadth and product costs will help determine which retailer ultimately succeeds in employing the technology. Meanwhile, omnichannel commerce, demographics, geography, assortment breadth, and brand expansion are converging to widen Walmart’s customer target, strengthening its competitive firepower.

Walmart as Omnichannel Competitor provides industry participants needed insight into the nation’s largest retailer’s omnichannel strengths and weaknesses, framing them within the context of key competitors. The report is part of a four-part series on Walmart Inc., inclusive of Walmart U.S. and Sam’s Club.

This report assesses Walmart usage, products and services initiatives and competitive trends within the context of the broader retail market. It focuses on omnichannel (online, in-store, and aggregated) consumer purchasing trends over time, and includes analysis of click-and-collect, the click-and-collect connection to in-store purchasing, dynamic pricing, subscription, private label uptake, and store format trends. In each case, emphasis is placed on Walmart U.S. and Sam’s Club, with comparative metrics provided for other major retailers.

Walmart as Omnichannel Competitor also places Walmart within the context of broader trends by providing an internet-only and omnichannel e-commerce forecast, as well as an Amazon e-commerce share forecast. It also assesses online and mobile purchasing trends, demographic shifts in purchasing, and shifts in in-store purchasing by retail category over time.