The Walmart Grocery Shopper: Consumer Insights and Competitive Strategies

Description

This report delves into consumer insights of Walmart shoppers, focusing on demographics, perceptions, motivations, and behaviors related to dietary and shopping choices. It also explores the current retail grocery market landscape, Walmart's sales trends, as well as competitive strategies.

The report covers Walmart's US sales trends and e-commerce performance from fiscal years 2019 to 2024, and provides estimates of Walmart's US grocery market share from 2021 to 2024. It analyzes the reasons behind and implications of shifts in consumer perceptions and behaviors, highlighting future market opportunities.

Included are numerous tables with numerical survey data on consumer demographics and psychographics, as well as various marketing photographs. The report offers an in-depth look at historical trends impacting the food and beverage market.

Product Code: LA19425052

Table of Content

CHAPTER 1: EXECUTIVE SUMMARY

Inflation Drives Consumers to Walmart: A Value-Oriented Advantage
Walmart's Competitive Strategies for Growth
Key Consumer Demographics
Scope

CHAPTER 2: RECENT HISTORICAL TRENDS

HIGHLIGHTS
RISING PRICES: FROM SUPPLY CHAIN CRUNCHES TO INFLATION

Table 2-1. Consumer Concerns about Rising Food Prices, 2021 - 2024 (percent of consumers)

Rising Prices Impact Consumer Behavior
Cutting Back on Household Expenses

Table 2-2. Consumers Cutting Back on Household Expenses in the Last 12 Months, 2022 (percent of consumers)
Table 2-3. Types of Household Expenses Cut Back on in the Last 12 Months, 2022 (percent of consumers)
Table 2-4. Consumer Spending on "Extras", 2023 - 2024 (percent of consumers)

Private Labels Are More Desirable as Prices Rise

Figure 2-1. Plant-Based Dairy Alternative under a New Walmart Private Label Brand
Figure 2-2. In 2024, Sales of Private Label Items Are Mostly Increasing as Sales from National Brands Decline
Figure 2-3. Private Label CPG Dollar Share, Unit Sales Growth, and Store Foot Traffic Changes

The Vast Majority of Consumers Have Noticed the Rising Cost of Food, and Many Are Changing
Their Purchasing Decisions

Figure 2-4. Noticing the Rising Cost of Food and Beverages over the Past Year, 2024
Figure 2-5. Impact of Rising Costs on Food/Beverage Purchasing, 2024
Consumers Find Price More Important for Food Purchase Decisions in
Figure 2-6. Purchase Drivers for Food and Beverage Purchase Decisions, 2024
Figure 2-7. Purchase Drivers for Food and Beverage Purchase Decisions by Household Income Bracket, 2024

SNACKING AND HEALTHY EATING HABITS

Snacking Trends Are Important to Retail Grocery Sales Trends in
Figure 2-8. Coronavirus Habits in Snacking, Eating Frequency, and Eating "Comfort" Foods, 2021 - 2022 (percent of consumers)
Figure 2-9. Coronavirus Habits in Eating Fresh Produce and Processed Foods, 2021 - 2022 (percent of consumers)
Changes to Snacking Habits in
Table 2-5. Current Snacking Activity Compared to Pre-Pandemic Levels, 2023 (percent of consumers)

ONLINE GROCERY SHOPPING AND CONVENIENCE FOOD OPTIONS
The COVID-19 Pandemic Was the Jumpstart the Online Grocery Market Needed

Use of Meal Kit Delivery Services in 2021 and
Figure 2-10. Changes in Ordering Meal Kits during the Pandemic, 2021 - 2022 (percent of consumers)
Figure 2-11. Some Vegetarian and Vegan Meal Kit Options
Activity in 2023 and

Frequency of Grocery Shopping in 2023: In-Person vs. Online

Figure 2-12. Frequency of Buying Groceries In-Person and Online, 2023

Use of Food Carryout and Delivery Methods in the Last 12 Months

Table 2-6. Consumer Use of Food Ordering Methods in the Last 12 Months, 2024 (percent of consumers)

Frequency of Food Carryout and Delivery Habits in the Last 3 Months

Table 2-7. Consumer Frequency of Food Ordering Methods in the Last 3 Months, 2024 (percent of consumers who have used each method in the last 12 months)

Frequency of Food Carryout and Delivery Habits Now Compared to 12 Months Ago

Table 2-8. Consumer Frequency of Food Ordering Habits Now Compared to 12 Months Ago, 2024(percent of consumers who have used each method in the last 12 months)

Expected Changes to Food Carryout and Delivery Habits in the Next 12 Months

Table 2-9. Consumer Expected Changes to the Frequency of Food Ordering Habits in the Next 12 Months, 2024 (percent of consumers)

WORK HABITS
Food Trends in the Context of Changes to Work

Changes to Work Patterns Continued in
Figure 2-13. Coronavirus Changes to Work Patterns, 2021 - 2022 (percent of consumers)
Working from Home in

Work from Home Ability and Frequency

Table 2-10. Ability to Work from Home and Frequency of Remote Work, 2023 (percent of consumers)

Working at a Co-Working Space or Working from Home

Table 2-11. Working at a Co-Working Space or Working from Home, 2023 (percent of consumers)
Table 2-12. Consumer Rating of Experiences Working at a Co-Working Space or Working from Home,2023 (percent of consumers who have ever had each experience)
Table 2-13. Consumer Opinions on Working at a Co-Working Space or Working from Home, 2023

(percent of employed consumers)

Work Habits in

Typical Work Weeks

Table 2-14. Where Time Is Spent during a Typical Work Week, 2024 (percent of employed consumers)

Typical Work Arrangements

Figure 2-14. Typical Work Arrangements (Fully Remote, Hybrid, and Traditional), 2024 (percent of

employed consumers)
PERSONAL FEELINGS OF WELLBEING

Reporting Negative Mental States in
Figure 2-15. Current Feelings on Mental and Physical Symptoms Compared to "Normal" or Preferred Level, 2023 (percent of consumers)
Continuing Mental and Physical Health Effects in
Table 2-15. Current Feelings on Mental and Physical Symptoms Compared to "Normal" or Preferred Level, 2024 (percent of consumers)

Stress Levels and Impact on Food/Beverage Consumption

Figure 2-16. Stress Levels in the Last Six Months and Impact on Healthfulness of Food/Beverage
Consumption,
Figure 2-17. Sources of Stress for Consumers Who Were Very or Somewhat Stressed in the Last Six Months, 2024
Figure 2-18. Top Sources of Stress in the Last Six Months by Generation, 2024
Figure 2-19. Happiness, Stress, and Health Status by Household Income Bracket, 2024
Figure 2-20. Impact of Food Consumption on Mental or Emotional Well-Being, 2024

CHAPTER 3: OVERVIEW AND GROCERY MARKET TRENDS

HIGHLIGHTS
FAILURE OF THE PROPOSED KROGER-ALBERTSONS MERGER
US ONLINE GROCERY SHOPPING WELL BEHIND OTHER COUNTRIES, BUT THERE ARE OPPORTUNITIES FOR EXPANSION
AND CONTINUED HOUSEHOLD ADOPTION
BRICK AND MORTAR STORES EXPANDING AND PROMOTING E-COMMERCE OPTIONS

Figure 3-1. Target Online Order Pickup Is One Option That Increases Store Traffic after an Online

Order
Retail Stores Rely More On Impulse Purchases
Private Label Products Are a Driver of In-Store Traffic, Online Sales, and Retailer Loyalty

Table 3-1. Selected Private Label Grocery Brands Available Via Online Ordering

Launching Online Grocery Shopping Via Third-Party Delivery Companies

Figure 3-2. A Wide Array of Grocers and Non-Grocery Retailers Served by Third-Party Delivery in Local

Markets
Expanding Direct Grocery Store Ordering Options

Figure 3-3. Subscription Service Saves Customers Delivery and Shipping Fees for Grocery Orders
Figure 3-4. Online Grocery Website Gives You Many Ways to Shop

"Dark Stores" or Grocery Fulfillment Centers Can Increase Operational Efficiency
Third-Party Ordering Platforms Make Offering Online Groceries Possible for Independents

Table 3-2. Selected Online Grocery Platform Providers

Continuing Challenges to Online Grocery Services Satisfying Consumer Desires
Pickup Can Solve the Last-Mile Problem
CONVENIENCE CAN BE THE ULTIMATE SELLING POINT FOR BUSY CONSUMERS
Online Grocery and Prepared Meals from Retailers

Figure 3-5. Walmart Sells Deli Items as Part of a Convenient Meal Package for Pickup or Delivery

December 2024 (C) Packaged Facts iii

Figure 3-6. Chef-Crafted Plant-Based Food Is "Delicious, Easy to Prep, and Built on Sustainably

Sourced Fruits + Veggies"
Meal Kits

Figure 3-7. Meal Kits Reduce Time Spent Meal Planning and Grocery Shopping Through Perfect

Portion Recipes
Meal Delivery Services

Figure 3-8. Meal Delivery Service Also Offers Chats with Registered Dieticians to Support Nutrition

Goals
CLEAN LABEL TRENDS
There Is No Single Universal Definition of "Clean Label"
Popular Media Effects on Food Perceptions: Healthfulness, Safety, Environmental Sustainability,
and Human and Animal Welfare Are Scrutinized
Different Levels of Processing
1: Unprocessed and Minimally Processed Foods
2: Processed Culinary Ingredients
3: Processed Foods
4: Ultra-Processed Foods (UPFs)
Some Grocery Products Are Shedding the Image of Being Highly Processed

Figure 3-9. bettergoods Pizza Made Without Artificial Colors or Flavors

Companies Are Investing in Big Data to Satisfy Consumer Desires for Transparency
Consumers Think Small and Medium Businesses Have More Credibility

Figure 3-10. Clean Label Chocolate Brand Features Organic, Paleo, Non-GMO, and Vegan Labels and

Emphasizes Absence of Undesirable Ingredients

CHAPTER 4: WALMART SALES AND COMPETITIVE STRATEGIES

HIGHLIGHTS
WALMART SALES TRENDS
US Net Sales by Merchandise Category

Table 4-1. Walmart US Net Sales by Merchandise Category, Fiscal Years 2019 - 2024 (million dollars)

E-Commerce Sales

Table 4-2. Walmart US E-Commerce Sales, Fiscal Years 2019 - 2024 (billion dollars)

Grocery Market Share

Figure 4-1. US Walmart Grocery Market Share, 2021 - 2024E (percent)

COMPETITIVE STRATEGIES

CHAPTER 5: WALMART SHOPPER DEMOGRAPHICS

HIGHLIGHTS
WALMART SHOPPING PENETRATION

Table 5-1. Shopping at Walmart by Store Format, 2024 (percent of consumers)
Table 5-2. Shopping at Walmart by Store Format, 2020 - 2024 (percent of consumers)
Table 5-3. Frequency of Shopping at Walmart Neighborhood Markets or Walmart Supercenters in the

Last 30 Days, 2024 (percent of consumers)

Table 5-4. Use of Walmart Grocery Delivery Services or Walmart Credit Card, 2024 (percent of consumers)
Table 5-5 Frequency of Use of Walmart Grocery Delivery, 2024 (percent of consumers)
Table 5-6. Frequency of Shopping for Groceries at Walmart vs. Other Retailers, 2024 (percent of consumers)
Table 5-7. Grocery Share of Typical Weekly Spending among Mass Merchandisers, 2024 (percent of consumers who shop at each store)

TRENDS BY GENDER

Table 5-8. Shopping at Walmart by Gender, 2024 (percent of consumers)
Table 5-9. Frequent Shopping at Walmart by Gender, 2024 (percent of consumers)

TRENDS BY AGE BRACKET

Table 5-10. Shopping at Walmart by Age Bracket, 2024 (percent of consumers)
Table 5-11. Frequent Shopping at Walmart by Age Bracket, 2024 (percent of consumers)

PATTERNS BASED ON HOUSEHOLD INCOME

Table 5-12. Shopping at Walmart by Household Income Bracket, 2024 (percent of consumers)
Table 5-13. Frequent Shopping at Walmart by Household Income Bracket, 2024 (percent of consumers)

REGIONAL DIFFERENCES

Table 5-14. Shopping at Walmart by US Region, 2024 (percent of consumers)
Table 5-15. Frequent Shopping at Walmart by US Region, 2024 (percent of consumers)

URBAN, SUBURBAN, AND RURAL CONSUMERS

Table 5-16. Shopping at Walmart by County Size, 2024 (percent of consumers)
Table 5-17. Frequent Shopping at Walmart by Urban/Suburban/Rural Living, 2024 (percent of consumers)

EDUCATIONAL ATTAINMENT

Table 5-18. Shopping at Walmart by Educational Attainment, 2024 (percent of consumers)
Table 5-19. Frequent Shopping at Walmart by Educational Attainment, 2024 (percent of consumers)

PRESENCE OF CHILDREN IN THE HOUSEHOLD

Table 5-20. Shopping at Walmart by Parenthood, 2024 (percent of consumers)
Table 5-21. Frequent Shopping at Walmart by Presence of Children in the Household, 2024 (percent of consumers)

RACE/ETHNICITY

Table 5-22. Shopping at Walmart by Race/Ethnicity, 2024 (percent of consumers)
Table 5-23. Frequent Shopping at Walmart by Race/Ethnicity, 2024 (percent of consumers)

TRENDS BY PLANT-FORWARD DIETS FOLLOWED

Table 5-24. Shopping at Walmart by Plant-Forward Diets Followed, 2024 (percent of consumers)
Table 5-25. Frequent Shopping at Walmart by Plant-Forward Diets Followed, 2024 (percent of consumers)

ONLINE GROCERY SHOPPERS (FOOD DELIVERY AND PICKUP SERVICES)

Table 5-26. Shopping at Walmart by Use of Online Grocery Delivery Services in the Last 30 Days, 2024(percent of consumers)
Table 5-27. Frequent Shopping at Walmart by Use of Online Grocery Websites in the Last 30 Days, 2024 (percent of consumers)

CHAPTER 6: CONSUMER PSYCHOGRAPHICS AND MOTIVATIONS FOR EATING CHOICES

HIGHLIGHTS
CONSUMERS WHO SHOP AT WALMART FREQUENTLY SHOP AROUND

Table 6-1. Grocery Purchases from Selected Retailers in the Last 30 Days by Frequency of Shopping at Walmart, 2024 (percent of consumers)

REASONS CONSUMERS SHOP FOR GROCERIES AT WALMART

Table 6-2. Reasons for Shopping at Walmart, 2024 (percent of consumers who report shopping at Walmart)

HOW CONSUMERS WOULD BE CONVINCED TO SHOP FOR GROCERIES AT WALMART MORE OFTEN

Table 6-3. Ways that Would Convince People to Shop for Groceries at Walmart More Often, 2024 (percent of consumers)
Table 6-4. Ways that Would Convince People to Shop for Groceries at Walmart More Often, 2024 (percent of consumers who would be strongly convinced)

REASONS CONSUMERS DO NOT SHOP FOR GROCERIES AT WALMART MORE OFTEN

Table 6-5. Reasons Consumers Do Not Shop for Groceries at Walmart More Often, 2024 (percent of consumers who shop at Walmart a few times per year or less often)

FOOD PRICES, SNAP BENEFITS, AND SHOPPING AROUND

Table 6-6. Consumer Agreement on Statements about Food Prices, Shopping Around, Enjoyment of Grocery Shopping, and Convenience, 2024 (percent of consumers)
Table 6-7. Consumer Agreement on Statements about Food Prices, Shopping Around, Enjoyment of Grocery Shopping, and Convenience, 2024 (percent of consumers who strongly agree)

PRIORITIES WHEN CHOOSING WHERE TO SHOP FOR GROCERIES

Table 6-8. Priorities When Choosing Where to Shop for Groceries, 2024 (percent of consumers)
Table 6-9. Priorities When Choosing Where to Shop for Groceries (Continued), 2024 (percent of consumers)
Table 6-10. Priorities When Choosing Where to Shop for Groceries, 2024 (percent of consumers rating highest priority)
Table 6-11. Priorities When Choosing Where to Shop for Groceries (Continued), 2024 (percent of consumers rating highest priority)

PRIORITIES PLACED ON FOOD CHARACTERISTICS

Table 6-12. Priorities Placed on Food Characteristics, 2024 (percent of consumers)
Table 6-13. Priorities Placed on Food Characteristics, 2024 (percent of consumers rating highest priority)

GROCERY SHOPPING AND MEAL PLANNING HABITS

Table 6-14. Consumer Agreement on Statements about Grocery Shopping and Eating Habits, 2024(percent of consumers)
Table 6-15. Consumer Agreement on Statements about Grocery Shopping and Eating Habits, 2024(percent of consumers who always or usually follow each behavior)

COOKING SKILLS

Table 6-16. Consumer Confidence with Cooking Skills, 2024 (percent of consumers)
Table 6-17. Consumer Rating of Cooking Skills, 2024 (percent of consumers)

ORGANIC FOOD PURCHASES

Table 6-18. Consumer Agreement on Statements about Organic Food Purchases, 2024 (percent of consumers)

FOOD PROCESSING AND CLEAN INGREDIENTS AND LABELS

Table 6-19. Consumer Agreement on Statements about Clean Ingredients, Food Processing, and Labels, 2024 (percent of consumers)

WILLINGNESS TO PAY MORE FOR PREMIUM FOOD CHARACTERISTICS

Table 6-20. Consumer Agreement on Statements about Willingness to Pay More for Premium Foods,2024 (percent of consumers)

HUMANE TREATMENT OF ANIMALS AND LOCAL SOURCING

Table 6-21. Consumer Agreement on Statements about Animal Products and Humane Treatment of

Animals, 2024 (percent of consumers)
SUSTAINABILITY TRENDS
What Consumers Think about Sustainability Issues and Sustainable Lifestyles

Table 6-22. Consumer Agreement on Statements about Sustainability, 2024 (percent of consumers)
Table 6-23. Consumer Agreement on Statements about Sustainability, 2024 (percent of consumers who agree)
Table 6-24. Importance of Practices When Living a Sustainable Lifestyle, 2024 (percent of consumers)
Table 6-25. Importance of Practices When Living a Sustainable Lifestyle, 2024 (percent of consumers who think each practice is important)

Recycling and Composting Services

Table 6-26. Consumer Access to Recycling and Composting Services, 2024 (percent of consumers)
Table 6-27. Consumer Usage Frequency of Recycling and Composting Services, 2024 (percent of consumers who report using each service)

Thoughts on Packaging and Waste

Table 6-28. Consumer Agreement on Statements about Recycling and Packaging Materials, 2024(percent of consumers)
Table 6-29. Packaging Types Considered Most Eco-Friendly, 2024 (percent of consumers)
Table 6-30. Importance of Sustainable and Eco-Friendly Packaging Characteristics, 2024 (percent of consumers)

Consumers Think that Environmental Responsibility Is Personal

Table 6-31. Environmental Attitudes among Walmart Shoppers in the Last 30 Days, 2024 (percent of consumers who completely agree)

CONSUMER ATTITUDES ON FOOD AND HEALTH
Cooking Attitudes

Table 6-32. Cooking Attitudes among Walmart Shoppers in the Last 30 Days, 2024 (percent of consumers who agree completely)

Attitudes on Convenience Foods, Being Busy, and Stress

Table 6-33. Attitudes on Convenience Foods, Being Busy, and Stress among Walmart Shoppers in the

Last 30 Days, 2024 (percent of consumers who agree completely)
Nutrition and Health Attitudes

Table 6-34. Nutrition and Health Attitudes among Walmart Shoppers in the Last 30 Days, 2024(percent of consumers who agree completely)

Attitudes on Premium Foods and Paying for Food

Table 6-35. Attitudes on Premium Foods and Paying for Food among Walmart Shoppers in the Last 30 Days, 2024 (percent of consumers who agree completely)

OPENNESS TO NEW FOOD EXPERIENCES

Table 6-36. Attitudes on Openness to New Food Experiences among Walmart Shoppers in the Last 30 Days, 2024 (percent of consumers who agree completely)

Attitudes on Exercise and Alternative Medicine

Table 6-37. Attitudes on Exercise, Mental Health, and Alternative Medicine among Walmart Shoppers in the Last 30 Days, 2024 (percent of consumers who agree completely)