Walmart Surging as it Brings E-Commerce to the Masses


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 and brought in Marc Lore to run e-commerce.

One other thing I’ve noticed as a longtime 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
  • Amazon and Walmart are the number one and number two online retailers for VMS with Amazon accounting for 4.5% and 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.

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