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Walmart drew one in four dollars spent on click and collect — with room to grow
in 2022
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Walmart drew one in four dollars spent on click and collect — with room to grow
in 2022
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Retail


WALMART DREW ONE IN FOUR DOLLARS SPENT ON CLICK AND COLLECT — WITH ROOM TO GROW
IN 2022

Published Thu, Dec 30 20217:00 AM ESTUpdated Thu, Dec 30 20211:17 PM EST
Melissa Repko@melissa_repko
WATCH LIVE
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Employees assist customers with online pickup orders at a Walmart Inc. store in
Burbank, California, U.S., on Monday, Nov. 19, 2018.
Patrick T. Fallon | Bloomberg | Getty Images
Key Points
 * Walmart scored 25.4% of all click-and-collect orders in 2021 — the largest
   share of any U.S. retailer, according to market data.
 * Click and collect, a more profitable e-commerce channel for retailers, has
   become a powerful sales driver during the pandemic.
 * Sales are expected to jump by about 21% to $101 billion in 2022, according to
   Insider Intelligence.

In this article

 * WMTUNCH
   
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One in every four dollars that Americans spent on online purchases retrieved
through either curbside pickup or inside of stores this year went to Walmart,
according to Insider Intelligence.

The big box giant drove 25.4% of all click-and-collect orders in 2021— the
largest market share of any U.S. retailer, according to recent estimates by the
market research firm formerly called eMarketer. That translates to an estimated
$20.4 billion in sales.



Click-and-collect sales are expected to jump by about 21% to $101 billion in
2022, according to the data tracker. They’re expected to grow by nearly 20% the
following year to an estimated $120.15 billion in 2023.

“It’s something people are used to doing now,” said Suzy Davidkhanian, principal
analyst for retail and e-commerce at Insider Intelligence. People began to
accept the behavioral change during the pandemic, along with such practices as
scanning QR codes to read restaurant menus on their phones.



Click and collect — also called buy online, pick up in store — is now a key
sales driver for pandemic-era retailers to deliver a safe, fast way to buy goods
and limit person-to-person interactions. Consumers order groceries, sweatpants,
lightbulbs, etc., online and then pick up their purchases in the parking lot or
at a designated store counter.

For retailers, the option comes with financial advantages. The e-commerce sales
are more profitable than other kinds of online sales because they eliminate the
cost of delivering packages to people’s doorsteps and allow store employees to
double as order pickers.

Shipping to the home still remains the more dominant e-commerce option in the
U.S., however. The click-and-collect channel is on track to drive roughly 11% of
all e-commerce sales for retailers next year, according to the market research
firm.




For Walmart, click and collect has turned a huge store footprint into a weapon
to fend off e-commerce colossus Amazon — not only to drive more sales but to
improve margins and nudge online sales closer to profitability. Walmart has more
than 4,700 stores in the U.S., excluding its membership-based store Sam’s Club.
Amazon’s store footprint is just a fraction of that, consisting mainly of its
more than 500 Whole Foods locations.

Walmart, the country’s largest grocer by revenue, began piloting online grocery
pickup long before the pandemic. It tested the mode of shopping at a store in
Denver in 2013 and marked its 1,000th location with the service in 2017. It now
has curbside pickup at more than 3,700 stores.

Walmart’s click-and-collect sales have nearly tripled over the past two years,
soaring from an estimated $7.21 billion in 2019 to $20.4 billion in 2021. Its
market share has grown, too, up from 20.6% in 2019. Its U.S. e-commerce business
has yet to turn a profit, despite expanding 79% in the previous fiscal year,
which ended Jan. 31, 2021.

After Walmart, Home Depot is expected to have the second-largest market share
for click and collect in 2021, accounting for an estimated 13.3% of all sales
through the channel, according to Insider Intelligence. Target, Best Buy and
Lowe’s round out the top five.

Home Depot rolled out curbside pickup to stores across the country in spring
2020 at the outset of the pandemic. Prior to that, customers could retrieve
online purchases inside of the store from an employee or a pickup locker.

For shoppers, buy online, pick up in store has become a popular way to get
time-sensitive home improvement supplies — such as a small hardware item, one
more strand of Christmas tree lights or another can of paint — when trying to
finish a do-it-yourself project or a professional job, said company spokeswoman
Margaret Smith.

Target has added hundreds of groceries and other items to curbside pickup during
the pandemic, including gallons of milk, cartons of eggs and bottles of wine. It
credits its same-day curbside pickup service, Drive Up, for fueling digital
sales growth during the global health crisis and has reported triple-digit
percentage growth of sales through Drive Up in multiple quarters.

Davidkhanian said she expects Walmart to remain the country’s market share
leader in click and collect. She said the big-box retailer is “leaps and bounds
ahead of everybody else,” because of its early launch — and grocery sales, a
purchase that lends itself to the shopping method due to their frequency and
immediacy.

She said she expects Target to move up in the rankings — and potentially bump
Home Depot from the No. 2 spot because of the former’s heavy emphasis on click
and collect.

VIDEO2:1802:18
These are Wall Street’s top retail picks for 2022
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Correction: Walmart’s click-and-collect sales are expected to grow to an
estimated $120.15 billion in 2023. An earlier version misstated the year.


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