Amazon Sales Predicted to Surpass Walmart by 2022
ROCKVILLE, Md. — Amazon is likely to become the largest retailer in the United States in 2022, when it pushes past Walmart in sales, according to Packaged Facts.
The market research firm made the prediction in its new report Amazon Strategies and the Amazon Shopper, 2nd Edition, which analyzes the e-commerce giant's activities in grocery, pet products and financial services.
"Amazon's already has an enormous impact on e-commerce sales, benefiting from its creation of an endless online aisle with products at competitive prices," said David Sprinkle, research director for Packaged Facts. "Packaged Facts estimates that Amazon's U.S. gross merchandise sales will comprise 43 percent of U.S. e-commerce sales in 2019, up from 28 percent in 2015. By 2022, we forecast that Amazon will contribute almost half of U.S. e-commerce sales."
However, Walmart does have some advantages over Amazon, such as in-store services that strongly differentiate it from online competitors and brick-and-mortar retailers that do not offer the same services or pricing, according to Packaged Facts.
These services produce revenue but also significantly drive traffic, which is particularly vital at a time when brick-and-mortar retailers are trying to revitalize in-store traffic.
The report includes four sections:
The Amazon Landscape
Focuses on Amazon consumer usage and engagement trends and related consumer usage and engagement strategies, along with Amazon's competitive positioning. It also focuses on Amazon products and services engagement over time. Analysis includes portraits of the Amazon shopper, the Amazon media user and the Amazon Prime member, plus Amazon's strategies to broaden its reach into U.S. homes and wallets.
Amazon Category Analysis: Grocery
Focuses on online grocery purchasing trends over time to assess purchase channel (both online and in-store) shifts and preferences according to major retailer and retailer channel. It considers Amazon's foray into the online grocery market.
The analysis is devoted to the role Amazon plays in shaping grocery trends, with attention to Amazon cross-usage among major food retailers over time; consumer usage of Amazon services such as Amazon Fresh, Subscribe & Save, Prime Pantry and Prime Now; and trends and strategies related to Whole Foods and physical store expansion.
Amazon Category Analysis: Pet Products and Supplies
Focuses on consumer pet products purchasing trends over time to assess purchase channel (online, in-store and multi-channel) shifts and preferences according to major retailer and retailer channel.
The analysis is devoted to the role Amazon plays in shaping these trends, cross-usage of Amazon by customers of other major pet product retailers, and Amazon's influence on online, in-store and multi-channel purchasing preferences.
Amazon Category Analysis: Financial Services
Focuses on Amazon financial services and payments consumer usage and engagement trends and related consumer usage and engagement strategies, along with Amazon's competitive positioning over time. It also assesses future opportunities and ramifications related to its current financial services and payments products as well as those in development.