WalmartWhen it comes to currying favor with America's value shoppers, Amazon is eating Walmart's lunch, according to an online survey.

Walmart's (WMT) standing as the nation's cheapest place to shop is waning in the eyes of low- to moderate-income online consumers, according to the YouGov BrandIndex.

Walmart's value score has declined markedly in the past two years, down from highs in the 50s to its current score of 22 on a scale of 100 to -100. At the same time, Amazon's (AMZN) image as a value retailer gained steam: The e-tailer's score rose from near parity with Walmart's to 71 today.

YouGov bills itself as the only daily consumer perception research firm. Its BrandIndex reflects interviews with 5,000 people each weekday from a representative U.S. population.

The question YouGov asked to generate these scores was simple: "Does [the retailer] give good value for what you pay?" Results were filtered by Internet shoppers who make an annual income of $50,000 or less.

Walmart, which became the world's largest retailer by marketing itself as the world's cheapest retailer, has also been fighting to hold onto its discount credibility amid the growing popularity of dollar stores.

To that end, the retailer is investing $2 billion to revive and strengthen its low-price bona fides, which Walmart executives concede have fallen short of late.

Meanwhile, Jeff Bezos, Amazon's quirky CEO and founder, has been building up the e-tailer to be the shopping destination for online bargains on the widest possible assortment of merchandise -- essentially the Walmart of the Web.

Amazon's low-cost operating model isn't weighed down by store operating costs, and the company has made a practice of skirting state sales tax laws to offer shoppers even lower prices.

Amazon's Continuous Evolution

It comes as little surprise that Amazon is stealing Walmart's discount thunder, says Kenneth Wisnefski, founder and CEO of Webimax, which develops online marketing strategies for retailers such as Aéropostale (ARO) and Sam's Club (WMT).

"The reason Walmart is declining in value perception is quite simply because they have not done enough to capture the online shopper," he tells DailyFinance. "We have Amazon.com, a fortress in e-commerce and online shopping, continuing to offer new brands, discounts and incentives, while Walmart is being left in the dust," he says. "The depleting value stems from their lack of online presence and their inability to offer multiple brands at various price points."

And Walmart's discount edge isn't only dulling in the eyes of lower income shoppers, Wisnefski says.

"While the study discusses a low-income shopper, the reality is, the majority of consumers are focused on finding the lowest prices and best deals online," he says. "The 2012 consumer is price savvy and is becoming more experienced as to how to bargain shop for products. With the major shift in retail moving online notably over the past 10 years, consumers now have almost 10 years' worth of experience in online shopping and price comparison.

"Walmart can compete better by offering numerous brands of the same product -- as Amazon does -- however they will have to institute an aggressive strategy to capture some of Amazon's market share, which won't be easy," he says.

NEXT: 5 Big Retail Chains That Will Be Gone in 5 Years






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Jack

Walmart prices cannot compare to Amazon.com in Nevada they do not charge sales tax. And in many cases shipping is free. As far as beer wine and whiskey Walmart prices can not compare to total wine. Total wine stores are located in many states. Nevada and California have them and maybe other states.

April 30 2012 at 1:47 PM Report abuse rate up rate down Reply
Michelle McScheets

I personally love Walmart when it comes to some items, like sports bras or basic household items like toasters or garden supplies. Basic necessities that are not necessarily food related are cheaper at walmart because local places cannot compare because they are not mass producing the products and therefore cannot make them cheaper. However, I don't like produce or many of the name brand items at Walmart because they are not actually cheaper.

I know the whole "not made in America" argument, but when you are on a tight budget, if it works, it works.

April 13 2012 at 9:46 AM Report abuse rate up rate down Reply
Selim Gülşen

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April 12 2012 at 12:31 PM Report abuse rate up rate down Reply
Officer Giggles

I ordered books on Amazon. I never received them and the company I bought them from basically told me that was just tough. It cost me eighteen dollars to learn not to order from Amazon ever again.

April 11 2012 at 7:31 PM Report abuse rate up rate down Reply
Tina

I do not care to shop Wal*Mart, alot of their stuff is junk and you think you are getting a good deal, For example:wal*mart's bakery's packaging, most items that had 12 per package now have 9 per package and are still the same price.There is never enough cashiers or anyone in the different departments to help you find what you are looking for.
I also do not like the way they treat their employees.I know people that work for them and people that moved on to other jobs because of the way they were treated.WAL*MART NEEDS TO GET THEIR ACT TOGETHER!!!

April 10 2012 at 6:59 AM Report abuse +1 rate up rate down Reply
Mr. Rockafeller

one last word of advice to all those working at the retail level including our friends of Walmart and that mom/pop store down the street..... offer more of what customers want and a little less of what the store owner wants. Many store owners delight or take pleasure in offering things that none want and stay on the shelves to collect dust.......I dont understand why this makes business sense

April 10 2012 at 5:49 AM Report abuse rate up rate down Reply
ejbunicorn

I don't think Amazon compares to walmart in anyway, I have looked at their site and would still chose walmart as walmart has lower prices than amazon for sure

April 10 2012 at 5:44 AM Report abuse -2 rate up rate down Reply
Mr. Rockafeller

Also...... a few houses down from me they opened a Dol. Gen. so I find myself buying there many of the little nik naks needed around the house.....plus at the end of a holiday they put seasonal items left unsold for mere pennies. I got at dollar general items you couldnt even find used for the price I got new stuff for.

April 10 2012 at 5:38 AM Report abuse rate up rate down Reply
Mr. Rockafeller

if walmart would have better buyers working their adm. offices and offer more quality products .... none need shop elsewhere. But since they cant even offer one nice silver ring that is a little original and not the same offered by the other box retailer next to them...you have not choice but to go online . In my particular case Walmart is okay if you want to buy soap , tissue for the bathroom....and other essentials of this type. But to get that silver ring I like so much .....I gotta go to amazon

April 10 2012 at 5:28 AM Report abuse rate up rate down Reply
lifehub

AMAZON is made up of all types of sellers, just as with eBay. You never know exactly what you're going to be getting from either. At least with Walmart, you have an actual visual of the item in your hand and can choose whether to buy or not. Besides that, many AMAZON sellers charge high shipping fees especially with books. Many of Walmart's items are accompanied by a 99cent or free shipping charge. AMAZON will nickel and dime you to death.

April 10 2012 at 4:54 AM Report abuse -2 rate up rate down Reply