$Walmart (WMT.US)$ The stock price hit a historical high of $83.34 this Wednesday, dropping 0.64% to $82.51 by Friday. So far this year, Walmart's stock price has surged over 58%, rising for six consecutive months, marking the longest continuous increase since 2002.

$Walmart (WMT.US)$ The goal is to expand prescription drug delivery services to 49 states in the USA by the end of January, covering over 86% of American households. Currently, same-day delivery is only available in six states.

This expansion will put Walmart in a position to expand its prescription drug delivery services to 49 states covering over 86% of American households by the end of January. Currently, only six states offer same-day delivery service.$Amazon (AMZN.US)$Competing for the dominant position in the pharmaceutical delivery market. Because Amazon Pharmacy is also in a growing process, it is expected that by 2025, nearly half of American users will be able to enjoy same-day delivery services provided by Amazon Pharmacy.

Although Walmart has been strengthening its e-commerce business, expanding product supply, and enhancing distribution networks, the question remains: Will this intensify its competition with Amazon?

Diversified core product categories, maintaining a high level of store delivery efficiency

$Walmart (WMT.US)$ E-commerce expansion has always been a major driver of its growth. Since 2022, Walmart USA's online sales have maintained double-digit growth, with the latest 22% growth in the July quarter, exceeding the company's overall revenue growth of 5%.

According to Statista statistics, in 2023 the e-commerce penetration rate in the USA reached 15.4%, with Amazon leading the US e-commerce market with a 37.6% share, while Walmart ranked second with a 6.4% share.

1. Groceries dominate in walmart's e-commerce business.

eMarketer predicts that by 2026, online food and grocery sales will account for 19% of total usa e-commerce sales. Over time, the online penetration rate of food and groceries will increase from the current 13.7%, bringing in billions of dollars in revenue for this category in the e-commerce market. In terms of sheer transaction volume, online food and groceries will become the largest e-commerce category in the usa by 2026.

While online food and groceries are$Walmart (WMT.US)$the largest retail category, with a product range broader and more competitively priced than amazon. Currently$Walmart (WMT.US)$The market share in this field is 27%, followed by large cap.$Amazon (AMZN.US)$And the food and grocery delivery platform Instacart are 20% and 19% respectively. An analyst at JPMorgan stated in a report that with Walmart's investment in e-commerce, they believe it will continue to be a leader in this field.

2. Walmart's huge physical store network has improved delivery efficiency and operates over 5,200 stores in the usa. During a recent earnings call, Walmart reported that delivery volume in U.S. stores for July increased by approximately 50% as more customers opted for e-commerce orders with additional fees for one-hour or three-hour delivery. Currently, over 45% of Walmart's e-commerce delivery centers have automated their business.

$Walmart (WMT.US)$Operates over 5,200 stores in the usa. During a recent earnings call, Walmart reported that delivery volume in U.S. stores for July increased by approximately 50% as more customers opted for e-commerce orders with additional fees for one-hour or three-hour delivery. Currently, over 45% of Walmart's e-commerce delivery centers have automated their business.

Internationally, Walmart's e-commerce performance is also impressive. In the most recent quarter, Walmart China's one-hour delivery orders increased by 28%, reaching 59 million units. In India, Flipkart's grocery business grew by over 50%, offering next-day delivery services in more than 200 cities.

Analysts are bullish on Walmart.

In the past month, including Bank of America, Citigroup, and UBS Group, several banks have raised their target prices.$Walmart (WMT.US)$ Bernstein and Citigroup have listed it as a preferred stock.

Analysts generally believe that Walmart will establish a more comprehensive ecosystem, continue to expand its market share, and increase its e-commerce market share and profit margins.

UBS Group raised Walmart's target price from $81 to $92, maintaining a 'buy' rating. The bank believes Walmart is still in the early stages of market expansion. By 2026, Walmart's third-party marketplace will generate over $150 billion in Gross Merchandise Volume (GMV) contributing $15 billion in revenue. The company's GMV in 2024 was $90 billion. UBS believes that by better integrating physical and digital products, Walmart will increase its market share, improve its e-commerce market share and profit margins.

Citigroup raised Walmart's target price from $75 to $98, maintaining a 'buy' rating. Analysts at the bank pointed out in a research report that Walmart's market share is constantly expanding due to its scale, convenience, and leading omni-channel product offerings. Citigroup believes that the strong performance during back-to-school season will continue into the holiday season, higher profit margin growth opportunities at Walmart will drive sales and EBIT margins growth, potentially changing investors' long-term views on the company.

Baird has raised Walmart's target price from $82 to $90 and maintained an 'outperform the large cap' rating. After discussions with Australian investors, Baird stated that Walmart's vision of becoming a disruptor in omni-channel retail is rapidly becoming a reality and more evident. The company believes that Walmart will continue to gain omni-channel market share while establishing momentum in other sources of revenue.

Sources: TheFly, Bloomberg, Yahoo Finance, eMarketer, Statista