Study: Walmart Outsells Amazon In Online Groceries

For the first time ever, Walmart Inc WMT outsells Amazon.com, Inc. AMZN in the online grocery category, according to a Tabs Analytics report.

The Study: Tabs surveyed 1,000 adults in August to better understand their buying patterns across 15 consumables categories. Overall online grocery purchases rose 15% year-over-year as those who already shop online made more frequent purchases.

The majority of the 15 categories saw meaningful gains and consumer packaged goods lead the consumer sector, according to Tabs.

Surprising Takeaway: Online grocery sales were expected to benefit from a massive upswing, but that wasn't the case, according to Dr. Kurt Jetta, executive chairman and founder of TABS Analytics. The pool of online grocery shoppers hasn't expanded much at a time of surging demand for groceries.

As such, it's now "even clearer" the online grocery channel in its current form won't gain the necessary scale and size to be profitable.

"New, creative approaches are needed to address pricing and streamline the supply chain," Jetta said.

Walmart Overtakes Amazon: For the first time ever, Walmart overtook Amazon in share of transactions, Tabs found. The retailer held a 30% share of transactions among those surveyed while Amazon's share dropped more than five points to 27%.

However, Amazon's market share loss could be a function of potential supply chain issues as the company contended with higher demand during the COVID-19 pandemic, according to Tabs.

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