Business

Walmart got one in four dollars per click and take: market researcher

According to Insider Intelligence, one in four dollars that Americans spent on online purchases, either through a curb pickup truck or in stores, went to Walmart this year.

In 2021, this major boxing giant accounted for 25.4% of all click-and-collect orders – the largest market share of any US retailer, according to recent estimates by market research firm formerly called eMarketer. This equates to roughly $ 20.4 billion in sales.

Click-and-collect sales will grow nearly 20% to $ 120.15 billion in 2022, according to the tracker.

“People are already used to this,” said Susie Davidkhanian, chief retail and e-commerce analyst at Insider Intelligence. People have begun to put up with behavior change during the pandemic, along with practices such as scanning QR codes to read restaurant menus on their phones.

Click-to-collect – also called online shopping and in-store pick-up – is now a key selling driver for pandemic-era retailers as it provides a safe and fast way to shop and limits personal contact. Consumers order groceries, sweatpants, light bulbs, etc. online, and then pick up their purchases in a parking lot or at a special store counter.

For retailers, there are financial benefits to this option. E-commerce is more profitable than traditional sales because it eliminates the cost of delivering packages to people’s doorstep and allows store employees to act as order pickers.

However, shipping continues to be the most dominant e-commerce option in the US. The click-and-collect channel is expected to account for approximately 11% of all e-commerce sales to retailers next year, according to a market research company.

For Walmart, click-to-collect has turned the huge store into a weapon against the Amazon e-commerce colossus – not only to increase sales, but also to increase profitability and bring online sales closer to profitability. Walmart has 4,742 stores in the United States, not including the Sam’s Club member store. Amazon stores only a small fraction of that area, with more than 500 Whole Foods stores in the main.

Walmart, the nation’s largest grocery store by revenue, began piloting online grocery delivery well before the pandemic. He tested the shopping mode in a Denver store in 2013 and celebrated its 1000th place with service in 2017… He now has pickup trucks at the curb in more than 3,700 stores.

Walmart’s push-to-take sales have nearly quadrupled in the past two years, rising from about $ 7.21 billion in 2019 to $ 20.4 billion in 2021. Walmart’s market share also grew from 20.6% in 2019. Electronic commerce in the United States. the business has yet to make a profit, despite growing 79% in the previous fiscal year, which ended January 31, 2021.

After Walmart, Home Depot is expected to have the second largest market share in terms of clicks and fees in 2021, according to Insider Intelligence, accounting for roughly 13.3% of all channel sales. Target, Best Buy and Lowe’s round out the top five.

In the spring of 2020, at the very beginning of the pandemic, Home Depot launched a pickup truck in stores across the country. In the past, shoppers could receive online purchases from inside the store from employees or in a pick-up locker.

For shoppers, shopping online and getting in-store has become a popular way to get timely home improvement items – like a small piece of equipment, another string of Christmas lights, or another can of paint – while trying to finish a deal. – own project or professional work, – said the representative of the company Margaret Smith.

Target added hundreds of groceries and other items to a roadside pickup truck during the pandemic, including gallons of milk, cartons of eggs, and bottles of wine. The company notes that the same-day delivery service, Drive Up, boosted digital sales during the global health crisis and reported three-digit percent growth in sales through Drive Up in several quarters.

Davidkhanyan said she expects Walmart to remain the country’s leader in market share in terms of clicks and receipts. She said the big-box retailer is “one step ahead” because of its early launch — and grocery sales, a purchase that lends itself to a shopping method because of its frequency and responsiveness.

She said she expects Target to rise in the rankings and possibly push Home Depot out of second place due to the former’s emphasis on click and collect.


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