According to a new report, e-commerce giant Amazon continues to lead Walmart in both overall consumer and retail spending as the Bentonville-based retailer has seen a declining share in nearly all retail categories.
The Pymnts.com report shows Amazon first captured the lead in the third quarter of 2020. Still, Walmart maintains a wide lead in the grocery category, but this share has been slipping.
At the end of the first quarter, Amazon accounted for 8.8% of gross retail spending and 3.4% of all consumer spending. By comparison, Walmart’s figures were 8.2% and 2.8%, respectively.
Gross retail spending attributed to Amazon has declined from its high of nearly 11% in the fourth quarter of 2021. Over the same period, Walmart’s share also fell but not as sharply as Amazon’s.
Amazon leads the e-commerce category, accounting for almost 53% of online sales in the first quarter, up from 51% in the fourth quarter. Walmart represents 5.6% of online sales.
By category, Amazon maintains a lead in clothing and apparel and electronics and appliances, the report shows. Amazon’s electronics and appliance market share rose to 25% in 2020, from 21% in 2019. Over the same period, Walmart’s was flat at 5.7%. The market share for both retailers fell in 2021, but Amazon’s was nearly five times that of Walmart’s.
According to the report, Amazon’s Subscribe & Save has a membership equal to 8% of the U.S. adult population. The subscription service allows consumers to save on plan-ahead purchases.
“The prospect of continuing inflation is amplifying Amazon’s appeal to Walmart’s customers,” the report shows. “As consumers factor in rising prices at the gas pump and in stores, Amazon’s Subscribe & Save may draw consumers ready to shift weekly purchases to digital.”
Walmart maintains a lead in food and beverage, which accounts for 56% of its revenue, but its 18% share is falling. Amazon’s 1.9% share includes sales from Whole Foods Market.