Affluent Shoppers Flock to Walmart Grocery

The retailer’s acquisition of Jet.com has reeled in higher-income customers for online orders.

February 21, 2020

BENTONVILLE, Ark.—Walmart’s online grocery business has become more popular with higher-income households, CNBC reports. Through its acquisition of Jet.com four years ago, the retailer has expanded its outreach to younger, more affluent urbanites. Walmart’s proprietary brands have also been a selling point for new shoppers.

With the retailer’s online grocery business accelerating, Walmart has noted online shoppers are snapping up more expensive items, such as choice meat cuts and organic produce, according to John Furner, president and chief executive of Walmart U.S. The service’s convenience factor “aligns well with someone who is time-starved and has higher income levels.”

At 3,200 locations, the retailer provides online grocery pickup and same-day grocery delivery at more than 1,600 stores. Walmart has also been piloting InHome, a program that unpacks groceries into a customer’s fridge.

Furman noted that offering a wide range of high quality groceries has drawn in a variety of customers. “Those quality levels then enable us to be able to appeal to that consumer across other channels,” he said.

Walmart’s e-commerce business is also capturing first-time buyers with its proprietary home and fashion brands.

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