Market data from Insider Intelligence showed that one in every four dollars spent by Americans online, where purchases were retrieved in-store or through curbside, went to Walmart. The big box retailer gained 25.4 percent of all click and collect orders across the nation. Earlier called e-Marketer, the market research firm estimated that Walmart got the largest market share of this segment in the U.S.
Pandemic era customers fueled the growth of click and collect. Revenues of all the major retailers across the nation who offer this service have increased in 2021. Although shipping is still the most popular option in e-commerce, click and collect is catching up and is expected to account for 11 percent of e-commerce sales for retailers in 2022, as per the research and estimates of Insider Intelligence.
Walmart is banking on click and collect as it faces competition from Amazon for e-commerce sales. It has over 4,700 stores in the U.S. It also has membership based stores called Sam’s Club. Amazon only has over 500 Whole Foods store locations putting it at a disadvantage for click and collect.
Walmart was an early advocate of click and collect. It tested this new shopping method way back in 2013. In 2017, it opened its 1000th online grocery pickup location. Now, the big box company offers curbside pickup at more than 3,700 stores.
Walmart has also seen tripling of profit in just two years. In 2019, its sales were estimated at $7.21 billion, while its 2021 estimates are said to be about $20.4 billion.
The click and collect service has been a boon for shoppers as they sometimes need to pick up time sensitive items or small items. These items are ordered online and picked up in the store or on the curb. This is a useful service for small items as well as for perishables.
Walmart also saves as store staff are designated to help customers in-store or curbside. There is also additional safety as personal contact is limited and shipping costs are also saved. The segment is growing and Walmart is hoping for much higher sales in 2022 and 2023. The data tracker, Insider Intelligence estimates that the big box retailer will see about 20 percent growth in 2022 to $101 billion and the forecast for 2023 is $120.15 billion.
