Walmart continues to dominate the grocery business, while rival Amazon continues to pull market share in other categories.
Walmart took in just shy of 19 percent of all consumer spending on groceries in 2023, while Amazon (both online and through Whole Foods), captured 2.9 percent of the grocery market, according to the Whole Paycheck Report from PYMNTS.
In overall spending, Walmart took in 7.3 percent of all retail spending and 3 percent of total consumer dollars last year. Amazon continued to climb, pulling in 10 percent of all retail spending and 4.4 percent of total consumer dollars.
In all, retail spending topped $5 trillion last year, up 3.8 percent from 2022. eCommerce saw an even bigger growth, jumping 7.6 percent to $1.12 trillion. Market penetration for eComm hit 22 percent, up from 21.2 the prior year. The increase was the latest in a yearly trend, as eComm market share has grown at least 0.2 percent each year since 2000. Quarterly breakdowns also show near-uninterrupted growth, with the exception of two mid-recession quarters in 2009.
Walmart’s hold on groceries helps the retailer combat share losses in other categories. Amazon’s growth in the last five years has established a dominant position in electronics, clothing and furnishings, showing steady growth patterns. Walmart’s share of those non-discretionary items has dropped slightly over the same period.
The latest battleground category appears to be health and personal care, where Amazon’s steady climb has eclipsed Walmart’s market share. In 2019, Walmart took in 6 percent of category spending, compared to Amazon’s 2.1 percent. While Walmart’s share has held generally steady at between 5 and 6 percent, Amazon’s has jumped. Amazon led in the final quarter of 2023, at 6.6 percent to Walmart’s 5.7 percent.
PYMNTS analysis highlights Walmart’s non-discretionary spending dominance, but Amazon’s gains in personal care indicate a battle for more of those dollars, according to the report.
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