News
Amazon and Walmart aim to retain shoppers amid luxury push
Amazon and Walmart may be focused on high-income consumers, but as the two retail giants compete for consumer spending, they are working hard to not lose their lower-income customers in the process.
Amazon, in turn, announced Wednesday (May 15) the introduction from Amazon Access, a platform that aims to provide easier and more accessible shopping experiences, especially for low-income customers. This initiative consolidates several programs, discounts and resources aimed at improving accessibility for a wide range of buyers.
Amazon Access serves as a hub where customers can explore different features tailored to their needs. This includes payment options like SNAP EBT integration and Amazon Layaway, which allows for installment payments, credit checks or additional fees, as well as discounts on Prime memberships for eligible government assistance recipients.
“Given the difficult economic climate, with many facing rising costs on essential needs, we want our customers to know about all the affordable deals available on Amazon, no matter the circumstances,” the e-commerce giant said.
Meanwhile, Walmart is looking to attract consumers concerned about their health care costs. On Saturday (May 18), the company offers free health checks for common conditions, according to an announcement on Tuesday (May 14), in “almost 4,600” locations. The company is also promoting its health products available in these locations, indicating how bringing these consumers to stores can convert into sales.
“We will continue to build and execute through our pharmacies and Vision Centers to ensure we are doing what we can to help people save money, live better and healthier this summer,” Kevin Host, the retailer’s senior vice president of Pharmacy , said in a statement.
While these companies may want to keep lower-income shoppers engaged, their goal is to win the loyalty of consumers with money to spend. Amazon has its luxury storesand Walmart has its Walmart strategy, piloting a new mix of merchandise and more sophisticated displays aimed at higher-income shoppers.
According to PYMNTS Intelligence, Amazon’s share of high-income shoppers is 36% higher than Walmart’s, and while Walmart’s shoppers are roughly evenly distributed across income brackets (less than $50,000 per year, between $50 thousand and US$100 thousand, more than US$100 thousand), more than half of Amazon buyers belong to the high-income group. In fact, only 16% of Amazon customers earn less than $50,000 annually.
Overall, many consumers struggle to meet their basic needs. The latest report from PYMNTS Intelligence’s New Reality Check, “The Paycheck to Paycheck Report: Why 60 Percent of Gen Z’s Real-Time Paycheck to Paycheck”, was based on a survey of more than 3,400 North American consumers to understand their financial lifestyles, among other topics. The results revealed that more than 1 in 5 consumers across all generations, with the exception of baby boomers and seniors, live paycheck to paycheck with trouble paying their bills.
The PYMNTS Intelligence Whole Paycheck Report estimates Amazon and Walmart’s market shares in several categories based on years of earnings reports in conjunction with national data from the US Census Bureau and the Bureau of Economic Analysis. The most recent edition, “New consumer spending data puts Amazon way ahead of Walmart,” found that Amazon held a 10% share of total consumer retail spending and Walmart held 7.3%.
See more at: Amazon, Amazon Access, discounts, e-commerce, top News, Health Products, Health care, Lux, News, Pharmacy, prices, PYMNTS News, Retail, Walmart