If you're one of the millions of people who participated in the Black Friday or Cyber Monday sales, you're probably eagerly awaiting a package's arrival right now.
Or, if you've ordered from one (or both) of the two retail giants in the U.S., chances are that package has already arrived.
Related: Walmart adding a convenient new store feature customers will love
Walmart (WMT) -) -- the biggest retailer in terms of revenue -- and Amazon (AMZN) -), the second largest, are locked in a tight race for logistical and market supremacy.
And it's great fun to watch. Amazon pulls ahead in delivery speed and volume, but Walmart outpaces it in sales. It's the beauty of the free market that allows competition to heighten and the consumer experience to improve.
It's probably safe to say that neither retailer is going to be satisfied until they've achieved total market saturation and outpaced their peers in every possible avenue. But Walmart recently pulled ahead -- and continues to outpace Amazon -- in a sector that's crucial to both companies.
Walmart beating Amazon in key market
When you think of Amazon, you probably think of electronics, kitchen gadgets, or household goods. And when you think of Walmart, you probably think of toys, bike and auto accessories, and home wares.
Perhaps, like millions of Americans, you also consider groceries. Walmart is actually the biggest grocer in the U.S. and the world; Kroger (KR) -) comes in at a distant second.
This is bad news particularly for Amazon, which has been scaling up its grocery efforts following its nearly $14 billion acquisition of Whole Foods in 2017 and its rollout of Amazon Fresh and Go stores in more recent years.
While the digitally native retailer tries to make the conversion to brick-and-mortar, though, Walmart has been sailing ahead. By the end of 2024, Walmart is expected to control 26.9% of the grocery market, leaving Amazon with 18.5%.
Insider Intelligence estimates that Walmart will do $58.92 billion in U.S. grocery e-commerce sales in 2024, while Amazon will do a markedly improved but still lower $40.50 billion in the same period.
Shortly before Amazon's acquisition of Whole Foods, it was the leader in grocery in 2015. It brought in $9.28 billion in sales while Walmart’s brought in $6.32 billion. But that trend actually switched in 2019, when Walmart brought in $1.14 billion more that Amazon. Since then, it's been rapidly gaining ground.
Part of that advantage has to do with Walmart's pricing power and reputation for good deals.
“Increasing inflation has led to more deal-seeking and trade-down behaviors from consumers, which favor Walmart over its competitors such as Target and grocery delivery platforms,” Insider forecasting analyst Brian Lau said. “Of course, having a store within 10 miles of 90% of U.S. households has also helped fuel Walmart’s grocery sales, both offline and online, because it means the company has more curbside and in-store pickup locations available.”
Consider, for example, that Walmart is now expected to $18 billion more in sales than Amazon in 2024, and it looks like the race may be suggesting a clear winner.
Unlock the secrets of the stock market with Real Money Pro. Gain direct access to elite portfolio managers' top stock picks and time-tested investment strategies. Embark on your journey to financial success — start now.
