Walmart’s Grocery Business Boom
Walmart, the largest grocer in the US, has seen a significant increase in its grocery business due to inflation, with food prices rising 11.4% in 2022 and expected to increase 5% in 2023.
The company’s low prices and massive footprint have attracted a growing number of Americans, including high-income consumers, with Walmart taking in over 1 in 4 grocery dollars in the US.
To boost its customer base, Walmart has enhanced its online shopping experience, added robots to its warehouses, and expanded its delivery options, including drone and direct-to-fridge delivery.
However, the company’s success has also faced criticism, with small, independent grocers arguing that Walmart’s low prices and negotiating power with suppliers create an unfair competitive environment.
Walmart’s grocery segment has grown significantly, with sales of over $300 billion in 2022, and the company expects to continue to invest in automation and e-commerce to drive growth and profitability.
| Term | Definition | Example Usage |
|---|---|---|
| Inflation | A sustained increase in the general price level of goods and services in an economy over time. | “The company’s sales increased despite inflation, which rose by 11.4% in 2022.” |
| Grocer | A retail store that sells food and other household items. | “Walmart, the largest grocer in the US, has seen a significant increase in its grocery business.” |
| Footprint | The area or extent of a company’s operations or influence. | “The company’s massive footprint has attracted a growing number of Americans, including high-income consumers.” |
| E-commerce | The buying and selling of goods and services online. | “Walmart has enhanced its online shopping experience to boost its customer base.” |
| Automation | The use of machines or computers to control and operate equipment or processes. | “The company has added robots to its warehouses to improve efficiency and speed.” |
| Drone delivery | A method of delivering goods using unmanned aerial vehicles (UAVs). | “Walmart has expanded its delivery options, including drone delivery, to reach more customers.” |
| Direct-to-fridge delivery | A service where goods are delivered directly to a customer’s refrigerator. | “The company offers direct-to-fridge delivery for online grocery orders, enhancing customer convenience.” |
| Negotiating power | The ability of a company to influence the terms of a business agreement or transaction. | “Walmart’s negotiating power with suppliers creates an unfair competitive environment, according to small, independent grocers.” |
| Competitive environment | The state of competition in a particular market or industry. | “The company’s low prices and negotiating power have created an unfair competitive environment for small, independent grocers.” |
| Segment | A part of a company’s business that operates separately and has its own revenue and expenses. | “Walmart’s grocery segment has grown significantly, with sales of over $300 billion in 2022.” |
| Profitability | The ability of a company to generate profits from its operations. | “The company expects to continue to invest in automation and e-commerce to drive growth and profitability.” |
| Investment | The act of putting money into a business or project with the expectation of generating a return. | “Walmart will continue to invest in automation and e-commerce to drive growth and profitability.” |
| High-income consumers | Individuals with a high level of disposable income, often seeking premium products and services. | “Walmart has attracted a growing number of high-income consumers, who are drawn to its low prices and convenience.” |
| Independent grocers | Small, privately-owned grocery stores that operate independently of large chains. | “Small, independent grocers argue that Walmart’s low prices and negotiating power create an unfair competitive environment.” |
| Unfair competitive advantage | A situation where a company has an advantage over its competitors that is not based on fair market practices. | “Walmart’s low prices and negotiating power have created an unfair competitive advantage, according to small, independent grocers.” |
| Suppliers | Companies or individuals that provide goods or services to other businesses. | “Walmart’s negotiating power with suppliers creates an unfair competitive environment, according to small, independent grocers.” |
| Warehouse | A building or facility used for storing goods and materials. | “The company has added robots to its warehouses to improve efficiency and speed.” |
| Customer base | The group of customers that a company serves or targets. | “Walmart has enhanced its online shopping experience to boost its customer base.” |
| Delivery options | The various methods by which a company delivers goods to its customers. | “Walmart has expanded its delivery options, including drone and direct-to-fridge delivery, to reach more customers.” |
| Growth | An increase in the size, scale, or scope of a company’s operations or revenue. | “The company expects to continue to invest in automation and e-commerce to drive growth and profitability.” |
Vocabulary Quiz: Walmart’s Grocery Business Boom
Answer Key
- 2. An increase in the general price level of goods and services
- 2. The geographical area covered by the company’s operations
- 2. The ability to influence prices and terms through discussion and agreement
- 2. The practice of buying and selling goods and services through digital channels
- 2. The ability of a company to generate revenue while minimizing costs
Modal Verbs of Obligation and Necessity
| Modal verbs such as “has to” and “is expected to” are used to express obligation and necessity. In the context of the provided text, we see that Walmart “has seen” a significant increase in its grocery business, implying a sense of obligation or requirement for the company to adapt to changing market conditions. Additionally, food prices “are expected to” increase, indicating a predicted necessity or obligation for consumers to pay higher prices. Understanding the correct usage of these modal verbs is crucial for effective communication in English. |
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