Amazon has been the online king for a long time now, meeting the growing demand of customers globally. Rivals have come and go, and some just accepting the place behind them.
But Walmart stands out as an outfit that has never accepted that place behind. They’ve continually positioned themselves strategically to pose worthy rivalry to Amazon. In fact, the retail giant may surpass Amazon as the top online grocery business in the U.S. this year.
Deutsche Bank upgraded Walmart’s stock to Buy from Hold due to expected gains in the online grocery market. Walmart currently holds the No. 2 spot behind Amazon among the online grocery sellers with the highest market share – a group that also includes Kroger, Target, Blue Apron and Peapod. Walmart’s share of the market stood at roughly 11 percent last year. Amazon accounted for 12.5 percent of total sales, matching Instacart. By the end of 2018, Walmart could rank as the largest seller of online groceries as it rolls out more pickup locations, Deutsche Bank predicted.
Walmart is “reaping returns on the many years of investment in e-commerce and customer service,” and the company’s online grocery business is poised to accelerate growth, Deutsche Bank said in a research note to clients.
“Importantly, our view is supported by our thesis that the food retail landscape is rapidly changing due to high adoption rates of convenience/online grocery and market share is meaningfully bubbling to the top.”