Why Amazon is winning the consumer battle against Walmart


It had to happen. Consumer Spending at Amazon

now exceeds that of Walmart

. In my conversation with Scott Murray, Senior Vice President of Data Analytics at Pymnts.com, he explained how Amazon has steadily grown to overtake the leading retailer.

He called it the ongoing battle for consumer spending. PYMNTS takes an in-depth look at the latest consumer spending data to find out how much total retail consumer spending Amazon and Walmart managed to gain in the final months of 2021. Here we learn that Amazon captured nearly five times the share of US household spending on electronics, appliances, sporting goods, hobbies, music and books than Walmart last year.

The report highlights that in 2021, the average US household spent nearly five times more on electronics and appliances at Amazon than they spent on the same types of products at Walmart. In 2021, 25% of total consumer spending on electronics and appliances and 17% of their total spending on sporting goods, hobbies, music and books went to Amazon. Amazon’s dominance comes as no surprise, since the company’s low prices have kept the number of booksellers that can compete with the company to a minimum.

The average American household still spends about 10 times more on food and beverages at Walmart than at Amazon. Walmart has a firm grip on its share of this sector of retail consumer spending. It offers sought-after items and particularly sought-after brands at low prices, while Amazon’s Whole Food stores are more expensive with a focus on organic foods.

Clothing spending has tipped in Amazon’s favor in 2021. The company’s visible push to be the dominant seller of women’s fashion has boosted its sales. Since 2017, Amazon has focused on fashion brands and women’s sports shoes. In 2021, it gained around 15% of consumer spending while Walmart’s share of consumer apparel spending was 6.5%, giving Amazon nearly a triple lead over its rival.

PYMNTS declares in its new report on Amazon dethroning Walmart as the biggest gainer in consumer and retail spending in the United States. Amazon captured 3.8% of all consumer spending. Consumers spent an estimated $510.388 million with Amazon, or 9.4% of what consumers spent on retail purchases that year. That’s more than Amazon or Walmart have ever earned in a year since PYMNTS began tracking the rivalry in 2014. Walmart had 3% of consumer spending and the report says $472 billion is went to Walmart, a sum that equates to 8.6% of total consumers. expenses. Taken together, the report correctly states that $18 of every $100 consumer spent on retail purchases in 2021 went to Amazon and Walmart.

Consumers are estimated to spend three times more on food and beverages at Walmart than at Amazon. The report says this is an area where Walmart has been successful in retaining and maintaining its lead over Amazon. It currently earns nearly 10 times more total consumer spending on food and beverages than Amazon,

Amazon has taken the upper hand in the battle for dominance in the US retail space. It is gaining ground in food and beverages where Walmart has a stronghold. The report ends with “only time will tell if Walmart will be able to reverse this trend and reclaim its share of the US retail mountain.”

POST SCRIPTUM : The battle between Amazon and Walmart is very complex. Amazon was quick to promote its prime membership, which ensured prompt delivery. It was only recently that Walmart added its plus service, which is similar to the first one. I’ve seen Walmart ramp up sales with new promotions. It is a difficult battleship to turn around.


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