First time I’ve seen this: brick and mortar retailers who have prioritized e-commerce are outpacing pure play online retailers like Amazon in certain categories e.g. vitamins and baby care.
Walmart online sales, for example, rose 63% in the first fiscal quarter. They are killing it since they acquired Jet.com and brought in Marc Lore to run e-commerce.
One other thing I’ve noticed as a longtime walmart.com shopper: they are now routinely more expensive than Amazon!!
Here’s more from a recent study by TABS Analytics:
- Breakout year for Walmart’s online sales of VMS (vitamins/minerals/supplements) which have helped propel the online sales for the VMS category to a ten-year high of 17% of all sales
- Last three studies by TABS in baby care, personal care and vitamins show clearly that brick and mortar retailers, particularly Walmart, are bringing ecommerce to the masses
- Previous TABS studies have shown a limited market for consumer packaged goods online, primarily focused on upscale consumers.
- Brick and mortar retailers are now gaining share in ecommerce by expanding the demographic base and offering a broader assortment of mainstream brands to online shoppers
Read on below for more key findings on the VMS category specifically as well as baby and personal care products online.
- Online purchasing for VMS grew dramatically, up 20% over 2016, led by significant increases by brick-and-mortar retailers’ online sales, especially Walmart.com.
- Amazon and Walmart are the number one and number two online retailers for VMS with Amazon accounting for 4.5% and Walmart.com accounting for 1.6% of all market transactions in the category.
- Note: the VMS category is showing signs of maturity. The surge has been in switch to ecommerce.
- For VMS, income is not a deciding factor. Unlike in the baby products market and other CPG categories where higher income influences purchasing, income doesn’t have a material impact on VMS purchases, except in the lowest income group.
TABS Analytics 10th Annual Vitamin Study is available here.