Walmart said on Thursday that food sales had grown to their highest level in five years due to the introduction of more organic products
Even though competition is heating up between US grocery chains, most Americans choose to buy their food from Walmart. The retailer expands its business both in stores and online by adding more organic products, which draws the attention of customers.
Moreover, the company is testing grocery delivery in New York City, while it has also taken aggressive steps to compete with Amazon, as well as with European discounters such as Aldi and Lidl which are increasing their presence in the US.
“We’ve seen strong results from the rollout of online grocery, which is now in more than 900 U.S. Locations. We’re expanding this service in many of our markets around the world. ” Doug McMillon, president and chief executive of Walmart said
This year, Walmart created its very own “designer” cantaloupe that, according to the company, tastes as sweet in winter as it does in summer. More than that, a spokeswoman said that its next goal is to develop a more flavorful tomato.
Food sales make up for more than half of Walmart’s revenue, accounting for almost $200 billion worth of groceries every year.
“There’s been a real effort to improve fresh foods — produce, meats — and they’ve been very aggressive in keeping prices low. Big picture, we’re feeling pretty good about Walmart.” Joseph Feldman, Telsey Advisory Group analyst said
All in all, the company said that e-commerce sales increased by 60% in the most recent quarter.