Wal-Mart withdrew $ 1 to $ 4 with Click and Collect: Market Researcher

According to Insider Intelligence, this year, $ 1 was sent to Wal-Mart for every $ 4 that Americans spent on curbside pickups or online purchases acquired in-store.

The Big Box Giant drove 25.4% of all click-and-collect orders in 2021. This is the largest market share among US retailers, according to recent estimates by a market research firm formerly known as eMarketer. That’s an estimated $ 20.4 billion in sales.

Click-and-collect sales are expected to increase by nearly 20% to $ 120.15 billion in 2022, according to data trackers.

Suzy Davidkhanian, Principal Analyst of Retail and E-Commerce at Insider Intelligence, said: During the pandemic, people began to embrace behavioral changes, along with practices such as scanning QR codes and reading restaurant menus on mobile phones.

Click-and-collect (also known as online purchases or in-store receipts) is a major promotion for pandemic retailers to purchase products safely and quickly and to limit person-to-person interaction. It became a factor. Consumers order groceries, sweatpants, light bulbs, etc. online and receive their purchases at the parking lot or at designated store counters.

For retailers, this option has economic advantages. E-commerce sales are more profitable than traditional sales because they eliminate the cost of delivering packages to people’s front doors and allow store employees to double as order pickers.

However, delivery is still the predominant e-commerce option in the United States. According to market research firms, Click and Collect channels are on track to drive about 11% of all retailers’ e-commerce sales next year.

For Wal-Mart, Click and Collect turns the footprint of a huge store into a weapon, not only dodging the huge Amazon of e-commerce, but also increasing sales, improving profit margins and making online sales profitable. Bring closer to. Wal-Mart has 4,742 stores in the United States, with the exception of the membership store Sam’s Club. The Amazon store footprint is just one part of it, consisting primarily of more than 500 Whole Foods locations.

Wal-Mart, the country’s largest grocery store by sales, began piloting online grocery pickup long before the pandemic. We tested the shopping mode at our Denver store in 2013 and marked the 1,000th place in the service in 2017. Currently, there are curbside pickups in over 3,700 stores.

Wal-Mart’s Click and Collect sales have nearly quadrupled over the past two years, jumping from an estimated $ 7.21 billion in 2019 to $ 20.4 billion in 2021. Market share also increased from 20.6% in 2019. US e-commerce Although it expanded 79% in the previous year, which ended on January 31, 2021, the business has not yet turned into the black.

After Wal-Mart, Home Depot is expected to have the second largest market share in Click and Collect in 2021, accounting for an estimated 13.3% of overall channel sales, according to Insider Intelligence. Target, Best Buy and Lowe conclude the top five.

The Home Depot rolled out curbside pickups at stores nationwide in the spring of 2020 at the start of the pandemic. Prior to that, customers could get online purchases from employees or pickup lockers in-store.

For shoppers, buying online and receiving over-the-counter is a common way to complete time-sensitive renovation items such as small hardware items, another Christmas tree light, and another paint tin. It has become. -A project or professional job of its own, company spokeswoman Margaret Smith said.

Target has added hundreds of groceries and other items, including gallons of milk, egg cartons, and bottles of wine to curb pandemic pickup. DriveUp, a curbside pickup service on the same day, acknowledged that it helped drive digital sales growth during the global health crisis, reporting triple-digit growth in DriveUp sales in multiple quarters. I am.

David Canian said he hopes Wal-Mart will continue to be the domestic market share leader in Click and Collect. She said that big-box stores are “a breakthrough than anyone else” because of their early launch and the sale of groceries that are suitable for shopping because of their frequency and immediacy. Said.

She said she hopes the target will move up the rankings. The former focuses on clicks and collects, which could push the Home Depot up from second place.

Wal-Mart withdrew $ 1 to $ 4 with Click and Collect: Market Researcher

Source link Wal-Mart withdrew $ 1 to $ 4 with Click and Collect: Market Researcher

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