Wal-Mart Stores is gaining a bigger slice of the $800 billion market and momentum picked up in the recent first quarter, according to a new report.
"Wal-Mart is taking back share from the traditional supermarket at an accelerating rate," according to Loop Capital analyst Andrew Wolf, who estimates the retailer now has a 21.5 percent market share in the U.S. traditional grocery industry.
In a report this week, Wolf said the world's biggest retailer's domestic grocery same-store sales beat U.S. supermarkets by 2.9 percent in the first quarter, which represented a stronger pace from 1.6 percent outperformance in the fourth quarter of 2016.
"Wal-Mart's last period of sustained outperformance versus the supermarkets was 2009-2010, while from 2013 through Q3'2016, the supermarkets outperformed Wal-Mart at same stores," Wolf said.
Added the analyst, "Thus, the last quarter of outperformance appear to mark a potential major inflection point for Wal-Mart after having been a (same-store) share donor since 2013."