eCommerce Players: Walmart

U.S. Consumer Shopping Attitudes 2023: Key Insights

• Walmart's Online Success: Walmart's journey from brick-and-mortar to eCommerce leader saw its website, walmart.com, become the top fashion store in the U.S., achieving US$11 billion in net sales in 2023.

• Customer Profile: walmart.com attracts primarily older shoppers, with 69% aged 50-64, residing mostly in urban or rural areas, and favoring 2-person and 4-person households.

• Key Purchase Drivers: Convenience is paramount for U.S. consumers, with home delivery being a major factor, alongside Walmart's longstanding commitment to offering low prices, contributing to its online triumph.

Back in the 1960s, when Walmart's rise began, the company scored with its low prices. The goal of this strategy was not to increase profits through price, but through increased sales volume. With its digital store, Walmart took its strategy online in 1996.

Since then, the walmart.com has grown into the leading eCommerce fashion store of 2023 in the United States, holding US$11 billion net sales. Furthermore, the U.S. company – Walmart, Inc. – reached a new high last year with net sales of US$100 billion. This success is due in no small part to Walmart's customers.

Who Are walmart.com’s Customers?

At the start of the new millennium, Walmart expanded its online presence, and the numbers speak for themselves. In November 2023, the number of visitors to the retailer's website – walmart.com – reached its peak for the previous year with 517 million visits worldwide, due in part to the Christmas season.

Walmart, Inc. currently generates 74% of its revenue share in the United States, which means that U.S. consumers play a crucial role in this company – but who are they?

In fact, according to Statista Consumer Insights, 69% of shoppers aged 50 to 64 shop at Walmart, followed by 67% of shoppers aged 30 to 49. Lastly, 63% of consumers between the ages of 18 and 29 shop at the U.S. giant. This suggests that older people in the United States are more likely to shop at Walmart than younger people.

Most of walmart.com Shoppers Live in a Town or Rural Community

While there is little difference in age distribution, there are larger differences in other general demographics. According to Statista, 60% of walmart.com shoppers live in a city or town, while 40% live in a rural area.

Most consumers (26%) shop for a 2-person household. This is followed by the 4-person household at 23% and the 3-person household at 22%. The 1-person household ranks fourth at 17%. Last but not least, households with at least 5 people come in at 12%. The average number of people per households in the United States in 2023 is 2.5, which may explain the result here.

Furthermore, the majority of shoppers are female (53%), while the difference to male shoppers (47%) is not as great, with a difference of only 6%.

What Drives Online Purchases in the United States?

The ultimate driver of online purchases for consumers in the United States is the delivery service that brings purchases directly to home. Walmart has recognized this as well and offers among other things a same-day grocery delivery for customers with a Walmart Plus subscription, similar to the Amazon Prime membership. In addition to these benefits, memberships are a good retention strategy.

Another key driver for online shopping at Walmart is low prices. From day one, the company's concept has been to keep prices as low as possible to attract customers. Overall, Walmart's online store offers many of the features that U.S. consumers love about online shopping, which has contributed to its success.