Posted on 01/05/2025 7:19:22 PM PST by SeekAndFind
Big retailers already dominate Americans’ lives. Their grasp on consumers is only getting stronger.
The three biggest retailers by revenue in the U.S.— Costco , Walmart and Amazon AMZN — accounted for about 11% of total retail sales back in 2014, based on their reported figures measured against national retail sales data from the Commerce Department.
Their share of the market has been growing since then. In their last three reported quarters, the behemoths selling everything from groceries to appliances made up about 17% of retail sales and roughly 57% of retail sales growth over that period.
Supermarkets have been a chronic casualty of the big retailers’ rise. Grocery stores accounted for about two-thirds of food-at-home spending in the U.S. in 2000, but their share shrank to 54% in 2023, according to the U.S. Department of Agriculture.
Over the same period, warehouse clubs and supercenters such as Costco and Walmart nearly doubled their market share to 23%. Amazon hasn’t grown its share of the grocery market much, but it captures a sizable share of everything else: About three-fourths of U.S. households have Amazon Prime, its paid membership program, according to a 2024 survey from Evercore.
Among some recent casualties are dollar stores, which industry analysts say are losing share to Walmart. The big-box retailer has drawn low-income consumers with a membership program that is half-price for those on government assistance. More than a fifth of Walmart+ members are on food stamps, according to survey results from Evercore. On its December earnings call, Dollar General said it was testing out same-day home delivery from its stores—a move that looks like an effort to play catch-up with Walmart.
(Excerpt) Read more at wsj.com ...
Some well-known retail chains have filed for bankruptcy over the past few months, including Big Lots, the Container Store and Party City. It is difficult to draw a straight line between their demise and big retailers’ ascendance, but consumers these days can probably find a version of what these specialty retailers used to offer while browsing the aisles—both online and physical—of Walmart, Amazon and the like.
And their prices are still going up with selection going down.
Their quality control is bad too.
People have been telling me they’re getting food poisoning-gut aches, vomiting and diarrhea.
My wife and I shop online quite a bit. It is simple, no crowds to deal with and we get it delivered to the front door. I have a Prime account that with the free shipping more than pays for itself. Wife says “we are getting low on TP or paper towels”, I just click on Amazon and order a case of 36 rolls and it’s cheaper than going to the store.
“About three-fourths of U.S. households have Amazon Prime”
Wow, I had no idea Prime had gotten that big. That’s enormous. And what a brilliant customer retention strategy.
131 million households x 0.75 x $139/year = $14.5 BILLION/year.
Just from “membership.” Of course, Amazon has to pay for all that “free” shipping you get with Prime. We’ve been “Prime” members since Day One when it was introduced in 2005 as a two-day delivery service.
I think of all the hours I didn’t have to spend in the car going from retailer to retailer to find something. It paid for itself in the hours I wasn’t in the car or going into stores.
Once something reaches a certain size it will continue to grow.
If this is left alone at some point it becomes too big to support it's self and collapses in on it's self to be followed by something new that will grow until it take's the place of the first item.
The problem is government interference where they give certain companies special privileges that their competitors do not have. Looking at you Jeff.
No, actually your fellow citizens pay for all that "free shipping".
“your fellow citizens pay for all that “free shipping”.”
Huh???
I live in a county where the nearest Walmart is 40 miles away in a different county.
We do have, however, 5 Dollar Generals.
FWIW.
“People have been telling me they’re getting food poisoning-gut aches, vomiting and diarrhea.”
My ex-wife had that back in 1996.
Brick and mortar retail is inefficient in an information age.
How many products need to have a sales floor with sales people?
I recently bought a television as Best Buy.
Shopped for and researched it on line.
Picked it up at the store.
In that case Best Buy was like a warehouse not an old fashioned retailer.
I was leery of buying a TV on Amazon and having it delivered although I buy a lot of stuff on Amazon.
Something with a screen can be easily damaged and it would have been a hassle to return.
It was a cheap TV on sale so I bought the warranty which I usually don’t but if it needs repair I can easily take it to the store.
My point is that it was a good experience and I was a satisfied customer.
I give Best Buy credit to adapting to the changing retail space.
I began shopping at the Walmart Markets years ago because of the low prices. I now have my groceries delivered to my door via Walmart Home+. The yearly membership is cheaper than Amazon and their return/refund policy is excellent - with no questions asked. I only go to the grocery store now for meat/poultry.
In CA. shopping at the brick and mortar stores has become an absolute pain in the butt, EVERYTHING is locked behind cages and you have to wait for an associate to come unlock and give you the product, THEN the wait in line to check out is just AWFUL!! I have been using Walmart curbside pickup I sit on my couch do my shopping on the iPad schedule the pick up time, I check in on my phone they bring the order to my car load it up and off I go!! Walmart has this service absolutely MASTERED I have NEVER had and error produce and meats have always been GREAT quality very happy customer!!! people are getting sick to death of shopping in store experiences and are staying away from the frustration of it all!!
Last week I needed to replace a countertop appliance stat.
Went to an independent appliance dealer where I’d many purchases before. Every employee was glued to their computer or on the phone. No one gave me the time of day...and it appeared that the showroom was just that. I’d have to wait a few days for their next warehouse delivery.
Drove three miles to the Home Depot. Employees eager to help, explain the various models, even offering assistance in carting.
Guess who got the my busieness....not the independent store.
I think Bezos keeps “teens” on the payroll to ensure in person shopping is dangerous and inconvenient.
I live on an island in the Pacific Northwest. One gas station, one grocery store and one hardware store (Ace). If I can’t get something locally, I buy it online. Big retailers are not part of my life.
Another victim of the pandemic. Big stores were permitted to stay open as “essential” but not small stores.
It’s all about costs and service. Economics 101.
***More than a fifth of Walmart+ members are on food stamps, ***
I remember the scandal of fifty years ago when it was found auto salesmen would take food stamps in place of a down payment on a car.
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