The Walmart grocery delivery market is poised to grow to $9.4 billion by 2020, an increase of 70% from a year earlier, according to the latest figures from the food and beverage services industry.
Walmart’s grocery business grew $3.9 billion in the first quarter of 2019, compared with $2.9 bn in the same period last year, and the company expects it to add another $2 bn to that figure by 2020.
Walmart’s $6.2 billion in total revenue in the fourth quarter of this year is projected to be about 70% of total revenue.
Walmarts grocery delivery platform, which has been the largest and fastest growing business in the grocery industry, is estimated to add $8 billion to the company’s overall revenue by 2020 and $8 bn by 2025, the company said in a release.
“The growth in Walmart’s [groceries] business in 2019 and 2020 has been fueled by increased customer interest in delivery services,” said Bob Wysocki, Walmart’s chief financial officer.
“We believe we can deliver a delivery experience that is even more convenient and convenient than ever before.”
Walmart said it is expected to add over $4 billion in annual revenue in 2021.