Amazon Prime members prefer Walmart for online grocery shopping, research shows
A greater share of surveyed Amazon Prime members bought groceries online from Walmart than from the e-commerce giant itself during a yearlong stretch that ended earlier in 2025, according to data released this month by Coresight Research.Just under 60% of surveyed online grocery shoppers who subscribe to Prime purchased groceries online from Walmart during the 12 months ahead of a poll Coresight conducted in April. Meanwhile, only about 52% of surveyed Prime members who bought groceries online over that period purchased from Amazon.By contrast, almost 79% of online grocery shoppers in the survey who subscribe to Walmart's membership program, Walmart+, made online grocery purchases from the mass retailer, Coresight found.
Dive Insight:
Coresight's research underscores Walmart's powerful position in the U.S. grocery e-commerce sector, where the mass retailer has made deep investments in recent years. Walmart topped the list of retailers where survey participants bought groceries online, followed by Amazon, Target and Costco - and was well ahead of conventional supermarket operators.
Almost 58% of survey participants who bought groceries via e-commerce during the 12-month period covered by the research purchased groceries online from Walmart. The comparable figure for Amazon was about 45%. Kroger banners attracted digital purchases from about 18% of online grocery shoppers in the survey.
Overall, 53.6% of respondents bought groceries online during the yearlong period covered by the survey, down from 56.3% during the prior year. However, Coresight found that the proportion of online shoppers who depend primarily on e-commerce to buy groceries rose sharply last year, continuing a steady trend that stems back to the early days of the COVID-19 pandemic.
Nearly 31% of participants in the survey who bought groceries online said they do "all or almost all" of their grocery shopping online, a figure that was up by about 10 percentage points compared with data Coresight collected a year earlier. By contrast, just 4.3% of shoppers Coresight surveyed in 2020 who used online grocery services said they depended mostly on those channels.
Walmart and Amazon have both been directing resources to beef up their online grocery capabilities. For example, Walmart said last July that it would add five automated distribution centers to handle perishable foods. And last fall, Amazon added the ability for shoppers to buy items from Whole Foods, Amazon.com and its Amazon Fresh service in one order.
The findings are based on a survey of 2,004 U.S. consumers Coresight fielded in April as well as polls of similarly sized groups the firm conducted annually over the previous seven years.
Copyright 2025 Industry Dive. All rights reserved.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
7 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq futures slip as Wall Street braces for trade deadline, jobs report
US stock futures slipped as investors digested the latest Big Tech earnings ahead of a pivotal Friday, with President Trump's deadline for trade deals and the July jobs report both on deck. Futures attached to the Dow Jones Industrial Average (YM=F) ticked down 0.1%. Futures attached to the benchmark S&P 500 (ES=F) fell 0.2%. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) slumped 0.3%. Only select US trading partners have managed to negotiate trade agreements ahead of Trump's self-imposed Aug 1. deadline, leaving many countries facing the prospect of blanket tariff rates as soon as midnight. Trump announced on Thursday that Mexico would get a 90-day extension of the tariff pause currently in place, and revealed a flurry of other deals and demands in the countdown to Friday. Read more: The latest on Trump's tariffs Apple (AAPL) and Amazon (AMZN) reported their earnings after the bell Thursday. Apple stock rose after its results beat expectations, boosted by surprisingly strong iPhone sales. Amazon's report also exceeded expectations, but the performance of its cloud business caused its stock to tumble. Stocks fell in day trading Thursday, weighed down by an inflation report showing rising prices as well as uncertainty around the looming end to the tariff pause. A rollercoaster week on Wall Street is set to end not just with trade turmoil but also with the arrival of the July jobs report, a key indicator of US economic health. The data is expected to show hiring slowed while unemployment ticked higher. Sign in to access your portfolio
Geek Wire
8 minutes ago
- Geek Wire
Amazon Web Services profits squeezed as AI arms race drives spending surge
Amazon Web Services is aiming to leverage its clout in the cloud for an AI advantage. (GeekWire File Photo) An increase in Amazon Web Services spending cut into the cloud giant's profits in the second quarter as AWS raced to meet demand for AI against Microsoft, Google, and others. While Amazon beat Wall Street's overall expectations, its shares fell in after-hours trading as investors focused on rising costs within the cloud unit, the company's biggest profit engine. AWS revenue grew 17.5% year-over-year to $30.9 billion, in line with estimates. But the costs of competing in the AI arms race were evident in the cloud division's profits. AWS operating income grew less than 9% to $10.2 billion as its operating expenses surged to $20.7 billion, up from $16.9 billion a year earlier. This resulted in an operating margin of 32.9% — the cloud giant's lowest profit-to-revenue ratio since late 2023, and well below the operating margin of nearly 40% in the first quarter. On the company's earnings call with analysts, Amazon CFO Brian Olsavsky attributed the pressure on AWS's profit margin to a seasonal increase in stock-based compensation, unfavorable foreign exchange rates, and higher depreciation costs from ongoing investments in AI infrastructure. Later on the call, analysts pressed Amazon CEO Andy Jassy to respond to a 'Wall Street narrative' that the company is falling behind rivals Microsoft and Google in pursuing the AI opportunity. Amazon's results came a day after Microsoft disclosed annual revenue of more than $75 billion for its Azure cloud platform, with quarterly growth of 39%, far exceeding expectations. Google Cloud's annual revenue run rate is more than $50 billion, with quarterly growth of 32% year-over-year, according to numbers disclosed by Google parent Alphabet last week. AWS is a significantly larger business, with an annual revenue run rate of more than $123 billion, making it much more difficult to generate eye-popping growth rates. But even at that size, Morgan Stanley analyst Brian Nowak asked Jassy if it would be possible for AWS growth to accelerate for the remainder of 2025, 'given the size of the opportunity' and the volume of the generative AI workloads expected to come online in the next 12 months. While Jassy declined to give specific guidance for the AWS segment, he said he is 'optimistic about the AWS business' and its potential to accelerate. He cited a combination of factors, including more enterprises resuming their migrations from on-premises data centers to the cloud, the expected increase in companies deploying AI applications into production, and more AWS capacity coming online in the coming months. Jassy described long-term strategic advantages for AWS, including the fact that AI inference will eventually be treated as 'another building block' like compute, storage and database. Because of this, he said, many customers will want to run their AI applications close to where their other applications and data already reside — creating a powerful advantage for Amazon, because 'there's just so many more applications and data running in AWS than anywhere else.' Jassy said AWS has a key advantage with its custom-built chips, which he said offer 30% to 40% better price-performance for inference than other GPU providers. He also pointed to what he called a 'very big difference' in security — alluding to problems that have plagued Microsoft without naming the company directly — and noted that AWS has a more significant, end-to-end set of AI services 'from the bottom of stack all the way to top.' AI milestones for the company in the recent quarter included the launch of Kiro, a new agentic integrated development environment (IDE) that lets developers code in natural language, while the system automatically creates documentation and specs, and scans for security issues. The company reported $31.4 billion in capital expenditures for the second quarter, up from nearly $25 billion in the first quarter, most of it related to technology infrastructure. Amazon's capex number is not directly comparable to Microsoft and Google due to its additional investments in fulfillment centers and its Project Kuiper satellite network. Olsavsky said AWS will continue to invest more capital in data centers and other resources 'to pursue this unusually large opportunity that we have in generative AI.' Operating margins, he said, will 'fluctuate over time, driven in part by the level of investments we are making.'
Yahoo
27 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq futures slip as Wall Street braces for trade deadline, jobs report
US stock futures slipped as investors digested the latest Big Tech earnings ahead of a pivotal Friday, with President Trump's deadline for trade deals and the July jobs report both on deck. Futures attached to the Dow Jones Industrial Average (YM=F) ticked down 0.1%. Futures attached to the benchmark S&P 500 (ES=F) fell 0.2%. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) slumped 0.3%. Apple (AAPL) and Amazon (AMZN) reported their earnings after the bell. Apple stock rose after its results beat expectations, boosted by surprisingly strong iPhone sales. Amazon's report also exceeded expectations, but the performance of its cloud business caused its stock to tumble. Stocks closed down in day trading Thursday, weighed down by an inflation report showing rising prices as well as Trump's fast-approaching Friday deadline for trade deals. Trump announced that Mexico would get a 90-day extension of a tariff pause currently in place, and has revealed a flurry of other deals and demands in the count down to the Aug. 1 deadline. However, only select US trading partners have managed to negotiate trade agreements, meaning many countries appear set to be slapped with blanket tariff rates come midnight. Read more: The latest on Trump's tariffs A rollercoaster week for Wall Street is set to close not only with the expiration of Trump's tariff pause, but also with the arrival of the July jobs report, a key indicator of the health of the US economy. The data is expected to show hiring slowed while unemployment ticked higher. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
