One Important Area Where Walmart Is Crushing Amazon

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The logo of Down Jones Industrial Average stock market index listed company Walmart is shown on one of its stores in Encinitas, California April 13, 2016.  REUTERS/Mike Blake

© Mike Blake / Reuters

By Brian Sozzi,The Street

August 22, 2016

Walmart (WMT) is using its vast network of stores to thump nemesis Amazon (AMZN) in the online grocery business. 

Score one for a legacy brick-and-mortar retailer. The world’s largest retailer added grocery pickup to 30 more U.S. markets during the second quarter, said Walmart CEO Doug McMillon on a pre-recorded earnings call last week. It’s now available in more than 60 markets and nearly 400 locations in the U.S. “It’s gratifying to see how much this service helps our customers save time,” McMillon said. 

To use the service, customers place their grocery orders online, choose a time to pick them up and then pull into a designated parking spot when arriving at a Walmart store. From there, a Walmart worker brings the groceries to the person’s car.

A source closer to the matter says Walmart will continue to roll-out the service to additional markets. But, it will unlikely do any big marketing to drive awareness for the service right now as it wants it to grow it from a grassroots perspective.   

Judging by the metrics and comments from smiling moms with minivans on social media (as seen below), online grocery ordering has been a nice win for Walmart. About 90% of online grocery users are repeat customers, and more than 90% of the orders include fresh grocery items such as dairy, produce and meat, the company told TheStreet in April. 

The chain’s research shows diapers and baby products are top-sellers among Millennial moms using the service. The likely reason? They are able to get out of the house with the baby, pop their trunk, and have their diapers and other groceries loaded without unbuckling any car seats or seat belts. 

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