Walmart has been investing big in expanding its grocery pickup service, and data from market intelligence firm Numerator gives a look at which shoppers the retailer is reaching.
Not surprisingly, consumers who use Walmart grocery pickup tend to be young, affluent parents, with money to spare but little time to spare, according to Numerator.
The company noted the following commonalities between people in this group of shoppers:
- 32% say they have no time to take care of themselves
- 40% are price driven
- 64% find shopping online enjoyable
Nearly all of these consumers — 82% — use a smartphone to shop online, while 59% use a computer to shop online.
While convenience is clearly key, with 76% saying they save time shopping online, cost is also a factor, with 52% saying they save money shopping online.
Walmart, in addition to spending millions on the physical and digital infrastructure for online grocery, has spent a significant amount of money promoting the offering.
Numerator explains why the retailer has been marketing the service so heavily.
“Early adoption is key,” Numerator wrote in a report on its findings. “This service is attracting very valuable shoppers, who are building larger baskets using (Walmart) online grocery pickup than they do in-store or through in-store pick-up. It’s going to be much harder to get customers to switch over in an online grocery world, especially those who have used a competing service like Prime Now multiple times.”
Setting grocery pickup up for success
In the last 13 months, 40% of the ad spend by Walmart has gone to the promotion of online ordering, according to Numerator. The firm estimates that Walmart has spent $31 million on spots for a Walmart grocery pickup ad that aired during the Super Bowl and the Golden Globes, along with shorter versions of the commercial that aired during many other shows.
In January and February, 67% of Walmart’s TV ad spend focused on online ordering, per Numerator.
Numerator found that consumers who use Walmart grocery pickup tend to prefer that service to shopping in-store — and they feel similarly about other retailers, too.
- At Walmart, 76% prefer curbside pickup, while 14% prefer in-store shopping.
- At Kroger, 66% prefer curbside pickup, while 22% prefer in-store shopping.
- At Target, 45% prefer curbside pickup, while 30% prefer in-store shopping.
- At H-E-B, 68% prefer curbside pickup, while 21% prefer in-store shopping.
In addition, not only do the people who use Walmart grocery pickup like the service, but they tell people about how much they like it.
“A majority of Walmart’s online grocery pickup users are not just users, but advocates, which projects positively for Walmart in the long-term,” Numerator wrote in its release. “Cultivating more advocates by delivering a consistently positive pick-up experience, while continuing to expand the service to more store locations, should position Walmart well in the omnichannel grocery arena.”