Walmart’s global e-commerce sales grew 23% in its latest quarter, and new research from Numerator suggests the retailer’s growing digital business is helping reshape its customer base.
At a time when many consumers are sticking closer to essential purchasing, everyday food categories have driven gains among growth demographics. Higher-income household spending increased by $3.6 billion across beverages, snacks, candy, and frozen foods, while Gen Z added almost $1.2 billion across the same categories.
Numerator’s analysis of consumer packaged goods found that traffic gains among Gen Z and higher-income shoppers have translated into billions of dollars in additional Walmart spending. Over the past year, Gen Z added 77 million trips worth $3.4 billion across stores and online, while higher-income households generated $8.9 billion in additional sales, primarily online, from 115 million more trips.
Private label is also attracting Gen Z households. They purchased own-brand CPG products during more than 390 million trips to Walmart over the past year, more than at Costco, Target, Aldi, Trader Joe’s, and Whole Foods combined. Among Boomers, however, Numerator maintained that Walmart lost $2.4 billion in-store private-label spending and recovered $780 million online, while nearly $1 billion more shifted to private-label brands at Amazon, Aldi, Trader Joe’s and Whole Foods.
Online, Walmart.com is only partially recapturing Boomer spending. Boomers made 160 million fewer CPG in-store trips to Walmart over the past year, contributing to a $6.2 billion decline, Numerator observed. The website captured $3.5 billion from Boomers who shifted online, while Amazon gained 1.5 share points and $5 billion in Boomer CPG spending.
Although Walmart.com is retaining most of the lower-income spending moving online, Amazon is gaining ground, Numerator indicated. Lower-income households shifted $7.8 billion away from Walmart stores while adding $7.3 billion at Walmart.com. Amazon gained 1.3 share points and $6.8 billion in CPG spending from lower-income shoppers.
