Walmart Selling More Food

Americans increasingly have been purchasing groceries at the discount retailer.

August 21, 2017

BENTONVILLE, Ark. – While competition between U.S. supermarkets has been heating up, Walmart has been siphoning off more U.S. grocery sales, the Washington Post reports. The discounter revealed last week that food sales had climbed to their highest number in five years, as the chain increased its grocery section both online and in stores with the addition of organic produce. Walmart also started a pilot delivery program in New York.

“We’ve seen strong results from the rollout of online grocery, which is now in more than 900 U.S. locations,” said Doug McMillon, president and CEO of Walmart, during a conference call with analysts. “We’re expanding this service in many of our markets around the world.”

Walmart has even gotten into producing what it sells, with the debut of its own “designer” cantaloupe that supposedly tastes sweet year-round. The company has its eye on a more tasty tomato. In addition, Walmart added more selections to its exclusive snacks line, such as Jelly Donut Oreos and Oreo O’s cereal.

Food sales grab more than half of Walmart’s revenue, bringing in close to $200 billion yearly, said Joseph Feldman, an analyst for Telsey Advisory Group. Kroger, the nation’s second-biggest supermarket chain, raked in $115.3 billion in 2016. “There’s been a real effort to improve fresh foods—produce, meats—and they’ve been very aggressive in keeping prices low,” Feldman said. “Big picture, we’re feeling pretty good about Walmart.”

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