Amazon gleaning Walmart shoppers

Online giant narrows gap with retailer by 11 cents on the dollar.

When virus-spooked Americans began avoiding stores earlier this year and shifting spending online, far more Walmart customers went to Amazon.com than Walmart.com.

In the first week of February, for every dollar shoppers spent with the two rivals, 66 cents went to Walmart and 34 cents to Amazon, according to Facteus, which tracks credit and debit-card spending for millions of shoppers. In the first week of August, that gap narrowed to 55 cents to Walmart and 45 cents to Amazon. Walmart, through a spokesman, declined to comment.

When the coronavirus began spreading across the U.S., some reports said Amazon’s vaunted customer service metrics were starting to slip. Amazon responded by stepping up safety efforts and hiring 175,000 people to keep its operations running.

The strategy, which included stepped-up safety measures in warehouses, eased investors’ fears.

But few predicted the second-quarter earnings report that shattered Wall Street’s already optimistic expectations and forecast a continued surge in demand even as stores start to reopen. The shares have advanced more than 65% this year, compared with a 3% gain for the S&P 500.

The online retail giant was perfectly situated to take advantage of a sudden shift in consumer behavior. Shoppers suddenly became quite forgiving of delivery delays. More than 8 in 10 thought holdups of a few days or longer were reasonable given the outbreak, according to one survey.