Walmart Vs. Amazon

Although Amazon and Walmart have already hired more than 100,000 temporary workers to keep up with the product and service demands (Amazon is looking to hire an additional 75,000 workers to help with the restock and delivery), they are still finding it difficult to keep essential items in stock and continue to experience delays in delivery services. However, Walmart’s physical footprint gives it an advantage, as the retailer is using its stores as warehouses for online orders. It is better equipped to handle and service the growing demands for grocery delivery, curbside pickup or BOPIS, and in the process, out-performing Amazon.

According to App Annie, as of April 5, the Walmart Grocery App ranked #1 as the most downloaded shopping app in the U.S. This is a 460% growth in average daily downloads compared to its January 2020 performance, surpassing Amazon by 20%. However, the Grocery App will be discontinued by this summer; it will be incorporated into the recently updated Walmart app, providing customers a more comprehensive and user-friendly experience by allowing users to shop grocery and non-grocery products within one app.

While Walmart stores remain open (at reduced hours, with pickup or delivery available for next-day or two-day options), Amazon is having difficulty keeping up with the increased demands. Customers are no longer offered same-day or next-day delivery; some orders may take up to a week or two for delivery. At the beginning of March, Amazon announced they would no longer accept non-essential items at their warehouses until April 5. This was a devastating blow to third-party sellers. Amazon also announced they have stopped taking new customers for Amazon Fresh and Whole Foods Market grocery delivery service – potential new customers have been put on a waiting list. However, for existing customers, a new feature will allow them to “secure a time” to shop. Most recently, three Whole Foods Markets became “dark stores.” These “dark stores” are no longer open to the public but rather, for employees to fulfill online orders for delivery or pickup. Despite their setbacks, consumers continue to flock to Amazon for much of their product “needs” regardless of the delivery lag time.