The world’s largest retailer continues to get larger — especially online, where it’s spending billions to compete with Amazon.com.
Walmart on Thursday said online sales grew 33 percent in its first quarter, as the company expands its website to include more premium products.
The discount retailer, known for its rock-bottom prices, has tried in recent years to attract more affluent customers by buying up niche brands and expanding its line-up of merchandise.
But analysts say attracting higher-end customers — and retaining them — will be a continued challenge.
“Walmart is not a natural destination for higher-priced items, especially in apparel,” Neil Saunders, managing director of GlobalData Retail, wrote in a note to clients. “There is much more work to be done to shift perceptions.”
Walmart.com — which updated its look last week with new colors, fonts and layouts — now sells 75 million items, including higher-end products such as Bose sound systems (which cost as much as $699), Tommy Bahama area rugs (up to $2,599) and wooden dinghies ($9,155).
The retail giant also is partnering with department store chain Lord and Taylor to create an upscale site with brands such as H Halston, Lucky Brand and Effy.
The number of visitors to Walmart.com has grown 34 percent in the past year, double the 17 percent growth rate at Amazon, according to data from comScore. But Walmart is coming from far behind — Amazon had an online audience of nearly 183 million visitors in April, compared to Walmart.com’s 101 million. (Jeff Bezos, the founder and CEO of Amazon, also owns the Washington Post.)
But analysts say much of Walmart’s business remains centered around lower- and middle-income shoppers who frequent its 4,700 U.S. stores. More than 96 percent of Walmart’s sales continue to come from its stores.
Walmart and Amazon have been locked in a tight battle to win over customers, in stores and online. Walmart spent $3.3 billion buying up Jet.com in 2016, and last week announced its biggest deal to date — a $16 billion investment in Indian ecommerce giant FlipKart.
It also purchased a number of niche labels last year, including Bonobos, ModCloth, MooseJaw and ShoeBuy.
Amazon, meanwhile, spent $13.7 billion on Whole Foods Market last year, giving it a foothold into the U.S. grocery business, where Walmart remains the largest player.