Walmart’s e-grocery service is drawing in higher-income customers.

Walmart’s strategy to expand its online presence across various demographics is proving successful, according to new data. A recent report from Brick Meets Click and Mercatus reveals that the retail giant is experiencing growth in sales among affluent shoppers, significantly contributing to Walmart’s performance in the first half of its fiscal year. Walmart’s e-grocery service is drawing in higher-income customers**.**

While Walmart traditionally serves a customer base that includes many lower-income households, sales from households earning over $200,000 annually increased by 8% in the first six months of the year. This growth rate is nearly five times faster than the overall 4% year-over-year increase for its total monthly active users.

“Walmart’s growth in households making $200,000+ per year indicates that the ‘flight to value’ has influenced how this income group shops for groceries,” noted David Bishop, partner at Brick Meets Click. “Affluent households shopping online for groceries at Walmart spend 1.5 times more each month than those in the lowest income bracket, making them a highly desirable customer segment to attract.” Walmart’s e-grocery service is drawing in higher-income customers.

In contrast, purchases from lower-income households—those earning less than $50,000—fell by 6% during the same period. This decline reflects a broader trend, as e-commerce sales at traditional supermarkets and competitors like Target also dropped by 20%.

The report highlights Walmart’s overall strength, showcasing its robust performance amid challenging market conditions. Unlike traditional supermarkets, hard discounters, and Target, which reported sales declines in the first half of 2024, Walmart maintained steady average order values.

How do regional retailers fare in this competitive omnichannel landscape? The Brick Meets Click/Mercatus report indicates that while supermarkets still hold the lead in cross-shopping, they face significant competition from Walmart. Walmart’s e-grocery service is drawing in higher-income customers.

“Regional grocers risk losing affluent customers to Walmart if they don’t effectively meet changing expectations,” warned Mark Fairhurst, chief growth officer at Mercatus. “To keep existing affluent shoppers and attract new ones, grocers must enhance their value propositions by providing unique products, personalized promotions, exceptional service, and improved digital experiences that boost customer satisfaction.”

Each week, approximately 255 million customers visit Walmart’s more than 10,500 stores and various e-commerce platforms across 19 countries. With fiscal year 2024 revenues reaching $648 billion, Walmart employs around 2.1 million associates worldwide. Bentonville, Ark.-based Walmart U.S. ranks as the top food and consumables retailer in North America, according to Progressive Grocer’s 2024 list, and has been recognized as one of its Retailers of the Century.