Walmart is kicking its competition to the curb, according to a report from financial services firm Cowen and Company.
Cowen released analysis asserting that Walmart is leading the way in curbside pickup, a service that could generate an estimated $30-35 billion for the grocery industry annually by 2020.
Basically, a significant chunk of purchases will rely on curbside pickup in the future. The report went on to estimate that by 2020, a quarter of Americans will have tried some kind of curbside pickup service, “given high customer satisfaction, younger customer preferences for curbside, and higher spend in this channel.”
Walmart didn’t immediately respond to Business Insider’s request for comment on the Cowen analysis.
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Cowen noted that the retailer had cemented its position as an industry leader by “aggressively” scaling, to the point where the firm estimates that 11% to 13% of Walmart customers currently use curbside pickup.
Meanwhile, Cowen’s report indicates that Walmart is courting a whole new swath of shoppers through its approach. The firm estimated that anywhere from 40% to 60% of Walmart’s curbside sales can be attributed to new shoppers.
Of course, Walmart isn’t the only big name in town when it comes to curbside pickup. Target and Kroger also have plunged into the battle for curbside supremacy. Amazon offers a similar service through Whole Foods, and who knows what sort of services its reported new grocery chain will feature?
And according to Cowen, this new focus on curbside fulfillment is likely here to stay.
“Cowen views curbside pickup as the natural evolution of the traditional in-store shopping experience,” the report reads.
Date: March 28, 2019