A report released last week by Deutsche Bank Securities found that as a result of Walmart’s investments in e-commerce, the company may overtake Amazon in online grocery market share by the end of the year.
“The retailer is reaping the returns of many years of investment in e-commerce and customer service,” said Deutsche Bank Analyst Paul Trussell. “We believe the company is now in position to accelerate market share gains in grocery while also growing EBIT dollars and expanding ROI.”
According to Walmart, the company offers online grocery delivery service in over 50 markets and more than 2,000 pickup locations. Walmart projects that it will have pickup sites in 430 markets, covering 69% of U.S. households, by the end of January 2019.
In 2017 Amazon had online grocery sales of $2 billion for a 12.5% market share. Walmart was close behind with sales of $1.78 billion and an 11.1% share.
Trussell believes Walmart could reach a 17% online grocery market share by 2025.