Walmart is Closing The Gap With Amazon As Internet Sales Grow 24% As Consumers Flock to Walmart+ Service





Walmart saw a 24% increase in online sales in the second quarter as it closes the gap with e-retail giant Amazon. 

In its second-quarter report released today, Walmart said it generated $24 billion in eCommerce sales. The company posted overall revenue of $161.1 billion, with online orders comprising 15% of the total.  

In comparison, Amazon generated $134.4 billion in net sales this quarter, maintaining a strong revenue lead over Walmart in the online arena but one that is shrinking.

The numbers bode well for another area where Walmart is competing with Amazon: The subscription game. Amazon is well known for its Prime membership program, but Walmart has made headway with its Walmart+ service. 

“What we see right now is that convenience resonates just as much to our customer base,” said John David Rainey, chief financial officer of Walmart, according to Yahoo! Finance. “If you’re a household that makes over $100,000 a year, you value convenience just as much as the next person.”

In March, Bloomberg reported that 28% of U.S. households making over $150,000 a year signed up for Walmart+ compared to 13% a year ago. Amazon also saw a jump, reaching 77% of the same demographic vs. 70% a year ago. The company is known for its low prices and expansive network of easily accessible retail locations. Almost 90% of Americans live only ten miles from a Walmart.

The convenience of a big online presence and subscription service combined with physical locations gives Walmart an edge over Amazon in the U.S.

Walmart is enlisting its physical locations to help boost online sales, encouraging its loyal customer base to sign up for a Walmart+ membership. Dozens of stores closed this year as Walmart cut operational costs to maintain its merchandise and establish itself as a preferred delivery service. The company is focusing more efforts on Walmart+ memberships over in-store shopping.

However, Walmart’s ease of access to retail locations greatly contributes to its online sales. Customers are encouraged to sign up for Walmart+ in the store, which offers a lot more than free delivery. Members are eligible for discounts on fuel at select gas stations. Members also get access to special discounts and pre-sale deals.

Additionally, Walmart+ members can utilize the app’s mobile scan and go feature, which is available at all stores. This lets customers scan items while shopping in stores to streamline checkout. Checkout is done via the Walmart+ app, and counts as an online purchase. 

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