Understanding Walmart’s Development Status in the United States Through 5 Pictures

Summary Walmart's US Development in 5 Pictures

Business Dialogue has learned that recently, Ryan Mayward, the sales leader of Walmart, stated that Walmart plans to attract more advertising spending for its retail media business. eMarketer has released relevant data on Walmart in the United States and compared it with its biggest competitor, Amazon.

1. Walmart’s e-commerce market share ranks second, but far behind Amazon

The data shows that by 2023, Walmart ranks second in the US retail e-commerce company rankings, accounting for 6.4% of the retail e-commerce market share, but still far behind Amazon’s 37.6%.

Walmart’s e-commerce sales growth rate ranks third, behind only Carvana and Chewy. eMarketer predicts that Walmart’s e-commerce sales will grow by 10.9% this year and by 11.3% next year, reaching $81.75 billion.

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2. Walmart’s physical stores will drive advertising revenue growth

eMarketer predicts that Walmart’s advertising revenue in the United States will grow by 39.1% this year, surpassing Amazon, Etsy, and eBay. However, Walmart’s advertising revenue of $3.16 billion is still only a small fraction compared to Amazon’s advertising revenue of $33.96 billion.

According to analysts, the next stage of US retail media will shift to in-store media form. Walmart has a huge physical store scale and is using this advantage to build new in-store retail media experiences, such as demonstrations, events, and in-store screens.

3. Slow growth of Walmart+

Three years after its launch, eMarketer predicts that Walmart+ will reach 29.2 million users in 2023. To promote user growth, Walmart has added a series of discounts and benefits, including a cash rebate plan, free subscription to Paramount+, and even launched a promotion activity similar to Amazon Prime Day.

However, Walmart+ only accounts for 1.5% of paid retail membership fees in the United States, lagging behind Sam’s Club and Costco.

4. Search is one of Walmart’s areas where it surpasses Amazon

According to JungleScout’s data, American consumers are increasingly inclined to start online shopping searches on Walmart.com, while Amazon, search engines, and Facebook’s shares are declining.

In order to improve the user search and shopping experience, Walmart recently redesigned its website and app, launching a homepage that encourages shoppers to browse products like on social media platforms. The redesign also offers a more carefully curated experience to better showcase its product offerings.

5. Walmart increases its investment in artificial intelligence

Walmart is using OpenAI’s GPT-4 and other language models to help improve its conversational AI capabilities, including its “text shopping” feature (which allows customers to add items to their cart via text or voice) and internal chatbots used by employees for customer service purposes.

Desirée Gosby, Vice President of Emerging Technologies at Walmart Global Tech, said in an interview with VentureBeat that generative AI will become a standard feature for retailers in the next few years. She said that AI will be “a significant shift in the way customers interact with us, like mobile technology.”

Editor: Ashley/AMZ123

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