When Amazon reports earnings on Thursday (February 2nd), Wall Street will be watching to see how much it drops and whether it beats expectations.
Fired? We are considering that as well. The landscape for AWS and enterprise technology spending is similar.
As the e-commerce giant grapples with slowing sales growth and consumers hold back on household spending a bit, Amazon’s revenue is where the company will focus to capture a larger share of retail mindshare and wallet share. It may indicate what to do. price sensitive consumers.
This, of course, means going head-to-head with Walmart more than ever. Over the years, PYMNTS has followed the battle between Walmart and Amazon in a variety of categories, including electronics, furniture, and apparel. Through its latest findings and its own research, PYMNTS found that Amazon and Walmart each have about 7% of a consumer’s total retail spending and his 3% share of total consumer spending. .
Grocery is a critical battlefield
Digging a little deeper, the most pressing battlefield, the one most likely to yield gains (or losses), is the grocery sector. The chart below shows that over time, the market share of food products has been surprisingly consistent. Walmart’s share is a multiple of Amazon’s, at 18% vs. 2.4% respectively.
Source: PYMNTS, US Census Bureau data
Promotions could win the day, and so could delivery. News broke last week that Amazon is increasing the amount Prime members need to get free grocery delivery. Beginning February 28, members must order $150 for free shipping from her Amazon Fresh. According to Amazon’s website, there are three tiers of service fees for small orders: $3.95 for orders between $100 and $150, $6.95 for orders between $50 and $100, and $6.95 for orders under $50. is $9.95.
Promotions could be a deciding factor here, as both Amazon and Walmart could be “pinched” by declining consumer enthusiasm for subscriptions. His PYMNTS survey late last year showed that subscription engagement for grocery delivery dropped 4.5% consecutively in the third quarter of 2022 compared to the second quarter.
Looking to subscribe for savings?
Not surprisingly, consumers maintain a more disciplined eye for what and where they use. But it turns out that Amazon Subscribe & Save, a service that allows consumers to arrange future deliveries of groceries and other products in exchange for deep discounts, is taking precedence over other retail subscriptions. So Amazon may be able to weather the headwinds here. Of course, apparel is still a discretionary purchase, where Amazon has a commanding lead over Walmart.
Meanwhile, separately, this week’s data shows that the paycheck-to-paycheck economy has now delivered. Moon. About 46% of all consumers are unlikely to buy expensive electronics this year, and about two-thirds won’t buy expensive gifts. For Walmart and Amazon, it will be a battle over household essentials.
PYMNTS Data: Why Consumers Are Trying Digital Wallets
According to the PYMNTS survey, New Payment Options: Why Consumers Are Trying Digital Wallets, 52% of US consumers will try new payment methods in 2022, with many choosing to try digital wallets for the first time. bottom.
