A leak memo shows that Walmart loses customers with these grocery chains
The retailer is concerned about competition in several categories of detail, including grocery store.
Recently disclosedWalmart Memo obtained byRecoder Indicates that the giant of retail loses ground to its competitors. The 100-page document prepared by Walmart for its advertising agencies reveals that the company is lagging behind competition in several categories of detail, including the grocery store and concludes that "Walmart is not first and foremost" .
This seems to be unlike Walmart's manifest image. The retailer had a good start to 2021, announcingpartnerships With a number of fast food restaurants and publishing impressive quarterly revenues. It's not secret that Walmart has been better than most of the pandemic, enjoyingGrowth in its e-commerce sales for 2020 and increase its total value in 2021More than $ 20 billion. By 2022, the company plans to invest $ 14 billion in distribution technologies (including automation) and seems to maintain its position asThe world's number one retail store.
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But Walmart's competitors also flourished during the pandemic, the memo points out. It reveals that in February 2021, Amazon and Target were actually overperformant Walmart in general merchandise sales, calling for the share of the lion of customers' expenses in this category. In the grocery store, the memo mentions an increase in sales toPublicity,Target, andAlbertsons Juxtaposed to a drop in grocery traffic at Walmart.
The climbing news is, however, from online grocery sales. Pre-pandemic, Walmart had a good health of 40% of this market. As of 2021 February, this share is down nearly 10 points, while Walmart Instacart's main competitor increased its share of 20% to a worry of 30%. According to the memo, Walmart hopes to register instatacart with investments in drone delivery services and mini-spy.
The Big-box chain tried to stay competitive by developing its own membership and loyalty programWalmart +Similar in the concept at Amazon Prime. Launched last September, the program offers many customer benefits, including free grocery delivery and a present expedition on some products. For more, discoverWalmart expands this grocery service, but people are skepticalAnd do not forget toSubscribe to our newsletterTo get the latest news from the restaurant delivered directly to your inbox.
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