Walmart, the largest U.S. retailer, is rapidly expanding its presence in New York City by leaning on e-commerce after its push into brick-and-mortar stores was thwarted. Even as union and community opposition blocked large supercenters and neighborhood store openings, the company has begun a full-on contest with Amazon through online sales and a delivery network.
On the 25th, according to the Financial Times (FT), New York City welcomes Walmart's business expansion but is not allowing the establishment of physical stores. Walmart has repeatedly failed to enter the city offline since a 2012 attempt to open a store in East New York, Brooklyn, fell through. With about 8.5 million people, New York is a major market three times the size of Walmart's home state of Arkansas, yet the company still does not have a store in the city.
Even with brick-and-mortar expansion blocked, outside analytics show Walmart's online sales in New York have grown quickly. According to Advn Research, which analyzes card transaction data, Walmart.com sales targeting Manhattan consumers have more than doubled since 2019 and rose 9% in just the past year. In the Bronx, Brooklyn and Queens, online sales have climbed 90% to 120% over the past five years. Staten Island sales also increased 44%.
A study by market analysis firm Similarweb confirmed the same trend. Visits to Walmart.com by New York City users rose by double digits from a year earlier, and in particular surged 44% on the last month. Analysts said New York's high cost of living is drawing consumers to Walmart's relatively cheaper online platform.
Walmart has also moved to boost brand exposure. For the first time this year, it put up a large billboard in Times Square and ran Black Friday discount ads in the New York subway. The retail industry said Walmart is building a meaningful foothold across the city's five boroughs with its online-focused strategy.
Walmart currently offers same-day delivery to parts of Queens, Brooklyn and the Bronx, using outer Long Island stores as hubs. Drivers hired through Spark, Walmart's same-day delivery network, handle deliveries, and residents of Manhattan and Staten Island use a delivery service centered on items that can be stored at room temperature.
There is still demand for in-person shopping. Jose Nunez, a taxi driver in East Harlem, told the FT, "Twice a month I go to Secaucus, New Jersey, to buy in bulk at Walmart." He said Walmart is far cheaper even after paying tolls and congestion fees.
Still, Amazon holds the lead in New York's e-commerce market. According to Advn, a payment data analytics firm, Amazon's annual customer purchase amount in New York far outpaces Walmart's. In fact, in central Manhattan, delivery workers carrying Amazon boxes were a common sight, while Walmart boxes were rarely seen.
Experts said, "Walmart is targeting New York, a 'food desert,' through its delivery strategy and price competitiveness even without physical stores," but added, "It won't be easy to unsettle Amazon's stronghold in the short term."