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Amazon to Overtake Walmart by 2022, Forecasts New Packaged Facts Report

Amazon will account for almost half of U.S. ecommerce sales in 2022, but Walmart will continue to find success with unrivaled in-store services

Packaged Facts Logo. (PRNewsFoto/Packaged Facts)

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Packaged Facts

Oct 24, 2019, 12:29 ET

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ROCKVILLE, Md., Oct. 24, 2019 /PRNewswire/ -- Amazon is set to become the largest retailer in the United States. While Walmart is currently the largest retailer, its reign may end in 2022, at which time market research firm Packaged Facts forecasts that Amazon will surpass Walmart, based on the expectation that Amazon sales will continue to grow at a much faster rate.

Packaged Facts made the prediction in the brand new report, Amazon Strategies and the Amazon Shopper, 2nd Edition, which analyzes the e-commerce giant's activities in grocery, pet products, and financial services.

"Amazon's already has an enormous impact on e-commerce sales, benefitting from its creation of an endless online aisle with products at competitive prices. Packaged Facts estimates that Amazon's U.S. gross merchandise sales will comprise 43% of U.S. e-commerce sales in 2019, up from 28% in 2015. By 2022, we forecast that Amazon will contribute almost half of U.S. e-commerce sales," says David Sprinkle, research director for Packaged Facts.

Despite Amazon's continued growth, Walmart does have advantages Amazon presently cannot match, even when accounting for Amazon's innovative incorporation of natural supermarket chain Whole Foods in 2017 or its partnership with department store retail chain Kohl's. Most notably, Walmart's in-store services strongly differentiate it from online competitors such as Amazon, which naturally cannot provide services, as well as from its brick-and-mortar competitors, many of which do not offer the same breadth of offerings or cannot match Walmart's pricing. These services therefore not only produce revenue but also significantly drive traffic, which is even more vital at a time when brick-and-mortar retailers of all shapes and sizes seek to revitalize in-store traffic.

Packaged Facts survey data reveals that more than 20% of Walmart purchasers use in-store services (including purchasing/using a range of financial services, on-site pharmacy, and optical and photo processing). In addition, Walmart is the click-and-collect king. Among survey respondent click-and-collectors, 43% identified Walmart as the pick up location for their last click-and-collect order, three times the percentage of those who cited runner-up Target.

About the Report

Amazon Strategies and the Amazon Shopper, 2nd Edition (published 10/2019, 217 pages) is available for $3,995 from Packaged Facts.

Media members please contact our Communications Manager Daniel Granderson at [email protected] for a copy of the report summary. Businesses and individuals interested in purchasing the report can contact Research Specialist Frank Gaines at [email protected] or visit https://www.packagedfacts.com/updates/Amazon.

This report provides insight in four parts:

  • The Amazon Landscape – Focuses on Amazon consumer usage and engagement trends and related consumer usage and engagement strategies, as well as Amazon's competitive positioning. The section also focuses on Amazon products and services engagement over time, analysis includes portraits of the Amazon shopper, the Amazon media user, and the Amazon Prime member; as well as Amazon's strategies to broaden its reach into U.S. homes and wallets.
  • Amazon Category Analysis: Grocery - Focuses on online grocery purchasing trends over time to assess purchase channel (online and in-store) shifts and preferences according to major retailer and retailer channel, and it considers Amazon's foray into the online grocery market. Analysis is devoted to the role Amazon plays in shaping grocery trends, with attention to Amazon cross-usage among major food retailers over time; consumer usage of Amazon services such as Amazon Fresh, Subscribe & Save, Prime Pantry, and Prime Now; and trends and strategies related to Whole Foods and physical store expansion.
  • Amazon Category Analysis: Pet Products and Supplies - Focuses on consumer pet products purchasing trends over time to assess purchase channel (online, in-store, and multi-channel) shifts and preferences according to major retailer and retailer channel. Analysis is devoted to the role Amazon plays in shaping these trends, cross-usage of Amazon by customers of other major pet product retailers, and Amazon's influence on online, in-store and multi-channel purchasing preferences.
  • Amazon Category Analysis: Financial Services - Focuses on Amazon financial services and payments consumer usage and engagement trends and related consumer usage and engagement strategies, as well as Amazon's competitive positioning over time. It also assesses future opportunities and ramifications related to its current financial services and payments products as well as those in development.

About Packaged Facts 

Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at our company website and are also available through MarketResearch.com.

For more essential insights from Packaged Facts be sure to follow us on Twitter (@packaged_facts), LinkedIn, and YouTube.

Media Contact:  [email protected]
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SOURCE Packaged Facts

Related Links

https://www.packagedfacts.com

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