Walmart's Digital Domination: Lessons for Grocers on their Quest for Omnichannel Market Share

Whatever way you look at it, Walmart stays winning. Just recently, the world’s largest retailer reported exceptional fiscal third-quarter results, with revenue reaching $169.59 billion and exceeding analysts’ expectations of $167.5 billion. Walmart is on track to capture a staggering 41.4% of the digital grocery market share by 2030, making it a standout case study in how to master omnichannel grocery sales. From a business perspective, it's a valuable segment to corner. Recent Grocery Doppio research shows omnichannel shoppers, who use both online and in-store options, spend 1.5x more than single-channel shoppers, demonstrating a 25.6% average margin.
So, what is fueling this momentum, and what are some of the lessons grocers should take from Walmart’s market domination, particularly in the digital space? 

AI-Driven Personalization 

Walmart is some strides ahead of its competitors in AI innovations. According to the 2024 IHL AI Readiness Index, Walmart scored a 77 out of 100 on the AI readiness scale. The ways in which the retailer deploys AI are numerous, but personalization is an area Walmart really shines.
Personalization is paramount in grocery, where inflation-conscious shoppers are focused on stretching their budgets. According to a recent Grocery Doppio survey, 81% of grocery shoppers believe they can unlock greater value through more personalized offers and experiences. However, there’s a gap: 92% of shoppers say the level of personalization in grocery stores falls short compared to other digital experiences.

Walmart has focused on addressing this need by enhancing its app and website with AI-powered search features. These include increasingly sophisticated product recommendations and special offers.
It’s important to note that Walmart’s AI doesn’t just stop at basic keyword searches – it digs deeper, decoding customer intent to come up with personalized product suggestions. Through this, shoppers can describe what they need in plain language, and the AI steps in with curated product lists, streamlining the whole shopping experience into something faster, smarter, and more human-friendly. It’s next-level integrations like this that go the extra mile for shoppers and secure Walmart’s status as an undeniable leader in the digital space. 

On their most recent earnings call, the retailer revealed they have used LLMs to create or improve over 850 million pieces of data across its catalog. These advances not only improve shoppers' e-commerce experiences, but make it easier for associates picking up online orders to easily find what they’re looking for via high-quality images of product packaging. In turn, this enhances the omnichannel experience.
In essence, Walmart is looking ahead to an evermore more personalized retail landscape and is using technology to get ahead of the curve. “We’re in a new era of retail defined by profoundly personal shopping experiences. Each shopper defines how, where and when they obtain goods, and context is key. The Why behind the purchase. Retailers must predict shoppers’ needs, reduce decision-making and enable highly personal experiences. Future retail success depends on how well we anticipate and meet these evolving expectations,” said Walmart’s Global Chief Technology Officer and Chief Development Officer, Suresh Kumar, in a recent statement. 

Walmart Corners the Omnichannel Shopper

Of course, digital success is about much more than just digital. Today’s shoppers are keen to blend in-store and online with increasingly frictionless ease. There’s a compelling financial gain to securing these shoppers’ loyalty, too: Grocery Doppio’s data shows that omnichannel shoppers spend an average of $1,043, compared to $839 for in-store-only and $857 for digital-only shoppers. This highlights the value of a seamless omnichannel experience, bridging physical and digital environments. Walmart knows better than most how to corner the omnichannel shopper. 

Today, Walmart has expanded its omnichannel capabilities across its three segments: Walmart U.S., Walmart International, and Sam’s Club. 

In a report earlier this year,  the retailer stated, “Through innovation, we strive to continuously improve a customer-centric experience that seamlessly integrates our eCommerce and retail stores in an omni-channel offering that saves time for our customers." Now, Walmart U.S. offers extensive omnichannel services, including pickup and delivery, in-home delivery, ship-from-store, and digital pharmacy fulfillment. By January 31 2024, most of its 4,615 stores had pickup locations, with over 4,300 offering same-day delivery.

Meet Customers Where They Are –The Grocery Store of the Future 

If there’s one thing Walmart excels at, it’s blending the digital and physical worlds to flex their omnichannel prowess. In October 2024, Walmart-owned club retailer Sam’s Club unveiled a groundbreaking, checkout-free store of the future in the Dallas suburb of Grapevine. 

Featuring many different innovations, the space is clearly designed with omnichannel in mind, with app-based, scan-and-pay technologies throughout and signs informing customers they can access online-only items by scanning an in-store QR code. The store has also allocated approximately 6,000 square feet to online order fulfillment – quadruple the typical space designated for picking and packing pickup and delivery orders, showing just how seriously the retailer takes its foothold in the omnichannel space. 

Other features include a new omni-fulfillment carousel for storing items, refrigerated totes for preserving online orders, and high-speed doors in the fulfillment area to accelerate order picking.

Sam’s Clubs’ store of the future exemplifies Walmart’s dominance in the digital retail space, with many of these innovations designed to continue to appeal to digitally-engaged customers – the key audience segment for the retailer. 

Retail Media Yields Results ‍

Naturally, this blend of digital and physical also impacts the company’s approach to and commitment to retail media opportunities. This year, Sam’s Club’s retail media network, the Member Access Platform (MAP), rolled out new features allowing customers to display ads within the Scan & Go feature of its mobile app, enabling advertisers to reach shoppers directly at the point of purchase. 

Retail media is a key growth focus for grocers, with 88% of executives citing media monetization as a top priority, according to Grocery Doppio. The study also reveals that 73% of grocers view retail media as a C-suite imperative. It's no surprise that Walmart also stands at the forefront of this space, blending the digital and physical spaces for the benefit of advertisers, shoppers, and themselves. 

In a recent LinkedIn post, the club’s Head of Strategy for MAPs shared that one in three Sam’s Club members now actively use the Scan & Go feature while shopping.  Taking into account Sam’s Club's membership-based model, advertisers also receive 100% attribution, ensuring precise tracking of their campaigns’ effectiveness.

This high-level of digital engagement among members creates a positive feedback loop for Walmart and its customers, further solidifying its winning status in the omnichannel space. 

Walmart’s mastery of omnichannel innovation and AI-driven personalization sets the gold standard for grocers. By seamlessly blending digital and physical spaces, it continues to lead the retail media revolution and drive significant growth.