Walmart Is Losing More Ground To Amazon

from Axios

Walmart is supposed to be making a solid run for second place in online shopping. But a leading Wall Street bank downgraded its shares today, as Amazon is instead extending its already-towering dominance of the market.

What we’re hearing: Walmart had a respectable 2017 in terms of overall sales, racking up $485 billion in revenue, up 3.1% from the prior year. But Thomas Paulson of Inflection Capital says the retailer had $11.5 billion in online sales last year, amounting to 1.9% of a total $606 billion U.S. e-commerce market. Amazon commanded $219 billion in e-commerce sales — 36.2% of the whole, he said.

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41 Responses to Walmart Is Losing More Ground To Amazon

  1. zhijie Yang March 16, 2018 at 1:59 pm #

    The battle between amazon and Walmart is a veritable retail giant. As the top of 500 fortune company, Walmart has consistently topped the list of global listed companies each year. However, Amazon combines Walmart’s low prices with its own unique innovation capabilities to become a digital age retail giant.

    The core difference between the two companies is distribution. Walmart relies heavily on the physical retail network of its 11,695 stores. Amazon’s sales are all online. In both cases, Amazon is far more in line with the long-term trend of the retail industry, where Walmart is trying to catch up with Amazon. In e-commerce, Walmart is still far behind Amazon. For example, according to research firm Slice Intelligence, Amazon captured 38% of US e-commerce sales during the holiday season last year, and Walmart e-commerce sales accounted for only 2.6%. Walmart has stepped up its efforts to narrow the gap with Amazon. The most significant move was to spend the past year to acquire e-commerce startup Jet.com. This $3.3 billion deal was widely seen as an “acquisition recruitment” in order to invite Jet founder and CEO Mark Raul. Diapers.com, which he founded, is one of the few e-commerce companies that has successfully competed with Amazon.

    All this is just a sign that amazon is now beating Walmart in the very important e-commerce sector. Walmart, however, is finally serious about buying talent to bring its sales model to the 21st century. The most likely outcome of the e-commerce arms race between amazon and Walmart, given its unparalleled supplier advantage, is that the two companies are tied.

    But from the valuation point of view, Walmart is slightly better. P/E: Amazon 182.6; Walmart 16.6. Corporate valuation and EBITDA: Amazon 36.2; Walmart 7.8. Obviously, Amazon’s growth in the next few years is likely to be much faster than Walmart. However, with Walmart’s recent efforts to narrow the talent gap with Amazon, Walmart’s stock looks far more attractive from a purely economic perspective.

    Walmart and Amazon are both dominating world-class companies. Metaphorically, Amazon is a barbarian outside the door, setting off a storm outside the long-dominated world of Walmart. Although Walmart has finally taken e-commerce seriously, Amazon’s ability to continue to expand its e-commerce market share with innovation has made it slightly better than Walmart.

    Seven months ago, Amazon announced that it had spent $13.7 billion to acquire Whole Foods Market, which was the largest acquisition in Amazon’s history. Through this acquisition, Amazon will enter the fresh field and strive to obtain a “good circle between quantity, turnover and freshness”. Since its inception in 1980, Whole Foods Market has been organic, natural, and non-polluting as its biggest selling point. It is also the first organic fresh grocery retailer certified by the US government and has won Amazon with a total food supermarket with more than 460 physical stores. A fairly large offline market will be harvested.

    Amazon won the Whole Foods Market because its business model and resource advantages are the best match for itself. Their customer base is highly overlapping, with matching coverage capabilities and complementary logistics capabilities, enabling them to deeply root in the offline retail industry. Combined with Walmart’s aggressive moves into the online market, this means that the competition among retail giants has become more intense.

  2. Kunj Darji March 16, 2018 at 6:52 pm #

    After all of the logistics are considered, the billions of lines of data are analyzed, the customer satisfaction reports are reviewed, and all of the other common practices are carried out, the real game changer here is exactly this: what comes to mind at the mention of these brands? Who are they, what do they stand for, where do they fit in today’s market?

    At first, it may seem as if Wal-Mart and Amazon are not truly competitors – Wal-Mart dominates in-store shopping for those with an old-school mindset, and Amazon caters to the younger generations who do almost all of their shopping online. Right?
    Not at all. Although these monopolies occupy two completely separate areas of commerce, Wal-Mart lacks a key factor that Amazon has made a priority – innovation, development, and constant improvement in every possible area. I think it’s safe to say that Wal-Mart does not make it a priority to adapt accordingly when it comes to the ever-evolving consumer trends. Though Wal-Mart has made an effort to venture into the online shopping world, they lag far behind Bezos and his team. Amazon is simply always ahead of the game.

    Wal-mart has always taken pride in having the lowest prices any retail distributor could ever offer, along with the convenience of being less than 5 minutes away from home for 70% of Americans. The problem for Wal-Mart is that Amazon offers all of these things and much more. Amazon has low prices. Amazon is not five minutes from home – it’s in your home. Plus, the services the platform offers make Amazon a powerhouse that will stand strong as more consumers move away from in-store shopping and towards digital convenience every day.

    Most experts admit that conventional methods of shopping will eventually die out completely. The bottom line is, it all comes down to convenience. The only factor that stops the majority of older individuals from doing everything online is a lack of tech skills. In the very near future, this will not be an issue for anyone. In the very near future, everyone in the US will be doing everything online. And where does that leave Wal-Mart? In the dust.

  3. Dean Spenzos March 16, 2018 at 8:39 pm #

    At this point it almost seems like anything Walmart does is an attempt to catch up to Amazon and gain relevancy. A few years a go all I would hear about is how well Walmart is doing and how they are taking over the country. Fast forward a few years and now they are just starting to expand into e-commerce with their purchase of Jet.com which seems like a lame cousin of Amazon. I am not saying they are doing poorly with $485 billion in revenue in 2017 but they are not doing as well as Amazon. The article even says they thought they would be doing better with 40% increase in sales in 2018 but are failing to live up to that expectation.
    Amazon is making big plays with the purchase Whole Foods and Ring as well as its progression towards drone deliveries. Combined with its cashier-less stores it feels like there is no way for Walmart to catch up unless they start investing in large long term opportunities.
    After doing a bit of research it turns out that Walmart is actually taking steps necessary to rival Amazon if it all plays out well. In February, 2017, Krystina Gustafson published an article detailing just a few of the new technological improvements Walmart is making to their stores that sound a lot like things Amazon is doing. One of the improvements will cut the amount of time customers spend in line. People will now be able to scan items while they are in the store and pay on their phone, an employee will just check the receipt on the way out. Customers will also be able to manage and refill their pharmaceutical prescriptions from their phone and skip the line once they get to the store. Walmart has said that their lines can get up to 70 minutes long on busy days and this deters a lot of customers.
    If Walmart continues to compete with Amazon with the physical stores and getting rid of lines then it could be possible to start expanding online. Walmart associates with more than 5,000 stores according to their website so obviously they have a huge user-base. If their plan to reduce lines with an app is a success then millions of Walmart shoppers will have the app on their phones. This could drive traffic to their online website and a lot of the users who usually go to the store might find the app easier and transition to online shopping. This would be one of Walmart’s best chances of catching Amazon in e-commerce as long as they keep getting people to use their app’s new features.

  4. Alan Josefsek March 17, 2018 at 11:21 pm #

    Walmart controls the market when it comes to brick and mortar retail. Additionally, Walmart is one of the largest employers in the world while Amazon is pushing out its employees in favor of cheaper alternatives such as automation and highly skilled workers. So, why is this important for Walmart? It is the in-person experience the consumer gets when they visit the store. While brick and mortar locations are on the decline overall for a more convenient experience online, the in person experience of a brick and mortar will never fully disappear. The only way Walmart can stay ahead of the curve is to optimize their web experience. But unlike those, which immediately lifted Walmart’s online sales, the Spatialand acquisition is aimed at building tech that won’t offer a payoff in any short term. Instead, Spatialand is working with Walmart’s Silicon Valley-based tech incubator, Store No. 8, an initiative launched last year as an in-house innovation cluster whose entrepreneurs enjoy autonomy from Walmart’s Bentonville corporate office, to develop the retail tech it wants in the next decade to go toe-to-toe with Amazon.com. Recently, Walmart acquired a startup VR firm called Spatialand. Many are unsure of the reason for this but being that I own a company in this space, I can give a highly educated guess regarding my opinion to the reason. If Walmart is able to position themselves as the first full main stream shop at home experience, they will dominate the market and have our friends at Amazon scrambling. VR or better known as virtual reality allows for customers to view a phenomenal and realistic experience online from the comfort of their home. Theoretically, Walmart can use the Spacialand team to create a virtual reality experience for their stores to allow customers the experience they enjoy while shopping from their homes. It’s online shopping with almost the same feeling. This will not only improve customer loyalty, but also allow for Walmart to showcase the more, sane, parts of their stores. As you may recall, Walmart has been under the microscope by consumers regarding the strange people that can be found in their stores. These people are also known as Walmartians which I find hilarious.

  5. Daniel Schreier March 18, 2018 at 1:51 pm #

    The main difference between Amazon and Wal-Mart in my view is Know-How. Amazon was born as an e-commerce company, so they have the knowledge of internet sales, and how this market can be influenced and grow since they started. Wal-Mart has always been the classical go-to-shop retailer, and it went into the e-commerce market much later. By that time, Amazon already dominated it, growing faster than ever before. Still, Wal-Mart got into this market with its subsidiary Jet.com, which was to be Amazon’s largest competitor, and it started out fairly well, with sales increasing to 11.5 billion last year. However; with Amazon’s new products, like Alexa and Echo, and becoming bigger and more innovative each day it goes by, it seems now, at least for the market, that Wal-Mart lost the competition. In my opinion, this happens because of two factors. One is Know-How. Amazon has more knowledge of how people shop this days, and want people want for the future, much better than Wal-Mart. Secondly, and for me a very important point is the fact that people who shop at Amazon have a lower age range than Wal-Mart’s costumers. Also, since Wal-Mart is a general retailer, people sometimes forget that they can buy online from them as well. Think about it. When you first need something online, you think of Amazon or Wal-Mart?

  6. Mawusimensah Mears March 18, 2018 at 10:32 pm #

    Every corporation has competitors in their individual markets. Walmart at one point was a vivid example of a franchise that was dominating the retail market. Beating out their competitors Such Circuit City and K-Mart about a decade ago. Walmart was leading in sales in the brick and mortar industry. An increase in the use of online shopping has now made Amazon the prime competitor in the e-commerce market. This has lead to a decrease in the stock price of Wal-Mart’s share. Competitive markets are healthy for the economy generating more transactions, but tensions could rise and cause legal friction between the two businesses.
    Wal-Mart’s shareholders are skeptical of their ability to compete with Amazon in the online market. Amazon meanwhile has been expanding its resources and capital, buying various companies and are suspected of trying to enter the online banking business. online shopping will soon take responsibility for the majority of sales in the United States economy. For Wal-Mart to prosper from this situation they should focus on internet sales and sales through jet.com and possibly expanding their investments.

  7. Michael W March 19, 2018 at 5:19 pm #

    Amazon has been emerging as one of the world’s most dominate corporations. Every day, they are expanding their business by offering a variety of products in hundreds of categories. From food, to medicine, clothing, electronics, and many others are easily accessible and can be purchased with a little as one click. Benefits of memberships to Amazon Prime, offer fast shipping for a low fee each month. As Amazon is being constantly expanded, it is slowly killing off its competitors. Others can simply not keep up. Stores such as Toys R Us, K-Mart, Circuit City, RadioShack, and others are some that had to make way for the Amazon train. Walmart is struggling to make the revenue that it did nearly a decade ago. Amazon offers faster, cheaper goods that a big retailer like Walmart can not. As the stock price drops, Walmart loses money. People are turning away from the one time dominant store, in order to online shopping. Amazon is becoming the center of the sales universe. As younger generations such as mine continue to buy online, Amazon will continue to prosper. Technology is being increasingly used as a sales platform, and as long as Amazon is around, Walmart will have their struggles increase.

  8. Greg Mattessich March 20, 2018 at 9:27 am #

    It is pretty clear that the lines separating traditional from online retail are disappearing. Both Amazon and Walmart are presented new challenges, and it’s been a while since Walmart needed to share the same stage with a retailer of it’s caliber. All the while, Amazon faces its biggest fight since it started wooing shoppers with cheaper prices and delivery conveniences more than two decades ago.

    Although Walmart is up in sales, I think it’s smart for investors to turn against Walmart. Amazon is a growing behemoth, and has way more advantage in terms of delivery speeds and pricing. Of course, Walmart holds the advantage in physical store retail, but the future is in online retailing. More and more people are choosing to purchase everything from Amazon because they share the same competitive price but offer a premium service memberships that dramatically increase the value of the service.

    A lot of companies today are struggling to compete with Amazon as it moves into new industries. Amazon’s acquisition of Whole Foods, for instance, completely revitalizes the grocery industry and directly competes with Walmart. Either way it seems Amazon can sneak it’s way in in order to dominate and have a competitive edge.

    I think Walmart made very smart decisions by building up its digital presence. The increase of e-commerce sales make that evident. Although e-commerce is still in it’s early years, I would be happy to see Walmart climb to the top as Amazon has always been the primary beneficiary of the shift to online sales.

  9. Joseph Sada March 20, 2018 at 7:18 pm #

    Walmart and Amazon are just a couple of names that people know of and tend to go to on a daily basis. It doesn’t matter what the consumer is particularly looking for, most likely, they will go to their favorite online retailer, which is Amazon or their favorite physical store, which is Walmart. Amazon is and always will be the fan favorite for shopping because it comes to the consumer in a quick amount of time and Amazon pretty much sells everything someone could want. Walmart is very similar, just in store form. Both of these companies seem to have majority of what the people are looking for. So now the question is: Why are we comparing or critiquing the two?
    Most of us will shop at Walmart if we are looking for something that is needed right at that moment or for groceries. People go to Amazon for whatever one would desire and it comes right to their door. There is a huge difference between the shoppers that use both stores. It is very rare one would find someone going food shopping on Amazon; That is just not something people do. If we saw a consumer looking for a specific product, then either company can most likely fit the criteria at hand.
    It is hard to compare these two companies based on online sales when one company is truly based on being inside the store and another being majority online. Walmart is the largest retailer in the world and that should definitely stand for something. Walmart, as a company, does very well and as one can see, did increase in sales numbers from last year by 3.1%. They are just not getting the online sales they want and it is 100% understandable why this is the case. If people want to online shop, they use Amazon. Whenever someone wants to go shopping in a store for certain things, Walmart would probably be the best choice for them, but if they did not find it in a Walmart, customers would tend to head over to Amazon. Even though these companies tend to sell the same things at times, they are very different in terms of consumer behavior.
    Both of these companies are very successful and did very well last year, but Walmart’s online sales cannot seem to rise above Amazon’s. Walmart’s online sales will never top Amazon’s sales because everyone goes to Amazon for majority of their items. If someone went into Walmart today and did not find what they needed, their next search to find it would be Amazon, not Walmart.com. There are definitely adjustments that could be made to ensure that Walmart’s online sales increase, but they will never dethrone Amazon.

  10. Joe C. March 20, 2018 at 10:31 pm #

    In 2017, the battle between Walmart and Amazon heated up with Walmart moving into Amazon’s e-commerce territory in big way. What does Amazon have going for it? Ease, Convenience and a large assortment. That is exactly what Walmart went after in 2017 to chew away a big chunk of the e-commerce business. Walmart revamped their Walmart.com website; making it more convenient with 2-day shipping, a larger assortment of products and an overall convenient shopping experience. This was due in part to the $3.3 billion acquisition of Jet.com; the extra boost to Walmart’s online shopping strategy. This has directly attributed to the 60% up-tick in online sales for 2017. Just as Walmart moved into Amazon’s territory, the same was true as Amazon acquired Whole Foods ($13.7 B deal) in an effort to directly compete with Walmart’s “bread and butter” in the rock-bottom low-priced food sector. Is it any coincidence that Walmart opened their 1,000th click-and-pick grocery service in the new market of Seattle; the exact location where Amazon opened both of their grocery pickup services. Coincidence? I think not.
    Walmart clearly sets itself apart from Amazon in their revenue. In 2017, Walmart surpassed $500 Billion in revenue for the first time; clearly passing up Amazon with nearly three times the revenue. The number one thing this does for Walmart is that it allows the commerce giant to put on a bigger squeeze of suppliers in their online market; something that Amazon is not as easily to do. One of tactic we are seeing between the two giants is a ‘tic-for-tac’ tactic in nearly every market. First it started with the Walmart attacking the online sector, Amazon retaliating to join the grocery sector and now we have see Amazon dive into the acquisition of a few private-label cloth retailers. This was immediately matched by Walmart acquiring a few additional private-label cloth retailers, in an almost chess like move. It didn’t end there, as Walmart’s subsidiary – Sam’s Club teamed up with Instacart to provide same-day grocery delivery in Dallas, Austin and St. Louis. This market is currently owned by Amazon – a coincidence? Again, I think not.
    The aggressive moves by these two giants have led to a market that is nearly untouched by any other business, nor has it offered any openings for new businesses to compete in this market. A new company would have to have a really, really unique, differentiated business model that would allow them to offer something to WOW consumers. This new mega-business is now dubbed ‘Omnichannel’ retailing, as it allows consumers to go to one business to acquire just about, if not all of what they need. It seems that everyone may be leaning towards Amazon in this battle. It seems that the once retail giant Walmart was on the defense against Amazon, has changed roles and now on the offense and shaping their strategy against a very serious threat in the market. As the battle rages on between these two retailer giants, it is clear who the real winner is – the consumer. Thanks Amazon and Walmart!

  11. Antonio Macolino March 21, 2018 at 2:00 pm #

    After reading this article, I have to ask the question, will Amazon ever lose? The apparent answer to this is a resounding no. Amazon is easily one of the biggest monopolies in the world right now. They virtually control the entire E-commerce market and no one believed it was possible to dethrone them. But then, Walmart offered a tiny glimmer of hope. Its online sales were increasing every year and once they purchased Jet.com, sales soared even higher. This was the company that was finally destined to compete with Amazon. Stock prices rose and people were buying many shares of Walmart because there was an excitement in the air. And then of course, Walmart failed to even come close to competing with Amazon. Even with so much promise and positive outlook, Amazon destroyed Walmart in earnings and still completely dominates the E-commerce market.
    What does this mean? Simply put, this means that Amazon cannot be stopped. Amazon is dominating the world right now. It is one of the largest, wealthiest, and most powerful companies on Earth and no one can stop it. Amazon has found a way to completely monopolize a market, without getting hit with any anti-trust lawsuits. This is amazing and does not bode well for other companies such as Walmart that are trying to stay relevant. Amazon seems to find a way to constantly come out with innovations that consumers feel they need. This is what keeps them on top. With artificial intelligence and Amazon’s Alexa becoming more and more sophisticated, I see Amazon dominating the market for years to come.
    These advancements in artificial intelligence are exactly what will keep Amazon on top. In the very near future, artificial intelligence will become a pretty integral part of our daily lives. Amazon will have perfected it and will sell the best artificial intelligence products in the consumer market. Because of the need to live with this artificial intelligence, people will be forced to buy it. Of course, they will buy it from Amazon thus keeping the monopoly going. While Amazon is not an evil company that is trying to take advantage of everybody, it cannot be argued that they single handedly destroyed the E-commerce market. No other online retailer at this point in time has even the slightest chance of competing with Amazon, and despite the best efforts by Walmart, there are really no contenders in sight.

  12. D.S. March 21, 2018 at 9:03 pm #

    While I am a huge advocate and fan of new technology, I think it is sad how Amazon is “destroying” brick and mortar retail. More and more companies are going out of business since they are unable to keep up with Amazon. Some recent examples of iconic retailers include Toys“R”Us, and Sears. As a consumer, I enjoy going to a brick and mortar store and looking at the product in person; talking to the employees if I need assistance; and taking the product home the same day. While Walmart is certainly not known for having good customer service, retail giants such as Best Buy and the Apple Store are both known for their exceptional world-class customer service. Since Amazon is an online store, consumers are not able to see the product before they purchase it or ask questions before they buy.

    I do not understand why people would rather buy from Amazon over excellent retailers as Best Buy, Target, Costco etc. All of the company’s previously mentioned offer the same products as Amazon, and have intuitive online stores that make purchasing products easy. Given the choice, I would always go to a brick and mortar retailer over an online store, since I get the product instantly, receive better customer service and have the ability to try the product before I buy.

  13. Sydney V March 23, 2018 at 3:06 pm #

    In just a few shorts years, what was once a place to rent books has become an online hub for online shopping. Amazon has taken over the online shopping industry, with over 36% of all e commerce happening through Amazon. With Amazon’s business tactics such as 2-day shipping on almost anything, lowest online prices, and availability of almost any item., it has been hard for any competitors to keep up. Analysts had predicted that if any company would be a worthy competitor ir would be Walmart. Walmart has always advertised themselves as a low priced, very accessible store. Since Amazon has taken that over the online shopping world, Walmart has also stepped up their online shopping tactics by offering next day ship to store and automatic price matching for all online orders. However, Walmart only accounts for about 2% of all ecommerce, which compared to Amazon’s 36% is clear that these offers alone will not get them to the level of Amazon. As Amazon continues to grow and evolve, it seems that Walmart will never be able to catch up. With Amazon’s recent purchase of Whole Foods, this could mean not just online competition but also competition of physical stores. With same day and two day shipping available, deliverable groceries, lowest prices of almost any item, book rentals, and an online streaming service Amazon is doing it all. In my opinion, there is no way Walmart will be able to compete with a giant like Amazon. I don’t believe Walmart will be closing its doors anytime soon, but I think that Amazon has definitely secured its place as top of the industry.

  14. Mary Margaret Miller March 23, 2018 at 4:13 pm #

    In recent years, the need for online shopping has increased immensely, as companies are trying to make their goods and products more conveniently accessible to the public. Amazon has become the largest digital commerce market in the world, and continues to grow in size every day. Companies such as Walmart are taking their online store to a new level by contacting outside vendors about joining their online marketplace. Walmart is trying to grow their e-commerce side of their business, so they purchased another company called Jet.com. Jet.com posed a threat to Amazon being that they were offering better prices for the same goods and services Amazon was offering, therefore Walmart figured that the best way to grow in the competitive market would be to buy out any company with prospective competition with Amazon. Since buying Jet.com, their revenue has increased by roughly $4 billion, and is expected to grow another three percent within the next year.
    What Walmart has going for them that Amazon currently does not have is the pick-up in store option. Both Amazon and Walmart have a goal of their customers receiving their products as early as possible, and with Walmart’s in store pick-up option, consumers have the option to have their orders within a matter of hours. With Amazon Prime, the soonest you can get your order is within one day. Amazon does not have stores like Walmart, which gives them the advantage to get their orders to their customers faster. In an age where instant gratification is a top priority, companies have to become more accommodating to consumers in order to fulfill their needs.
    Will Walmart ever be able to grow larger than Amazon? With the two largest retailers going head to head, it is hard to decide. Both have their pros and cons to the way they do business, but only one can remain as the top service provider. At the rate Amazon is growing, they will more than likely remain the largest online marketplace in the world. With Toys R Us announcing their company shut down, Amazon has taken initiative and is looking to purchase the company, but not keep it for its original intended use. Amazon is looking to create stores where people can pick up their orders, and buying a company such as Toys R Us would mean that they would acquire each of their retail stores, meaning they would have locations they could have locations where they can house their Amazon pick up stores. Amazon has already purchased Whole Foods and has done a similar principle, where they have lockers that house your packages and you must pick them up at your local Whole Foods store. At this rate, it is becoming more and more difficult for Walmart to become the next Amazon, and at the rate they are going, Amazon may buy their company next.

    Sources
    Bartels. “Wal-Mart to Sell Goods from Other Vendors on Web.” ABC News, ABC News Network, abcnews.go.com/Business/wal-mart-sell-goods-vendors-web/story?id=8457644.
    Bloomberg. “Amazon Might Take Advantage of Toys ‘R’ Us Store Closures.” Time, Time, 20 Mar. 2018, time.com/5208191/amazon-buying-toys-r-us/.
    Checketts, Cory. “How the Walmart Marketplace Differs from Amazon.” Seller Labs, 28 Aug. 2017, http://www.sellerlabs.com/blog/walmart-marketplace-differs-amazon/.

  15. Nathaniel Valyo March 23, 2018 at 5:56 pm #

    Before the rise of e-commerce, Walmart was one of the retail giants. Years before Amazon came into being, we relied on brick and mortar stores like Walmart, in addition to stores like Macy’s, Target, Sears and Toys R Us, for our shopping needs. Once Amazon came into being, brick and mortar stores lost their charm and value, which leaves us in the situation we are currently in, with those beloved stores losing their overall worth. Simply put, Amazon has swallowed up the competition, leaving the brick and mortar industry in the dust.

    Walmart has been deemed as Amazon’s fiercest competitor in the retail industry, and the brick and mortar industry’s last shot at redemption; Toys R Us has already fallen, and Sears and Macy’s are on their way out. Personally, I do not believe Walmart will be going out of business in the foreseeable future; there is still a faithful commitment from shoppers who long for instant gratification and human contact from employees at the store where they are purchasing the item. Even though the vast majority of consumers are doing their shopping online, and Walmart has made attempts at expanding their digital presence to meet the needs of consumers, there will always be those who prefer to buy their items immediately in the store. But, as the article points out, Amazon is widening the gap even further, propelling itself to the top with no one in the way.

    Ever since Amazon announced their all new HQ2, I came under the impression that the executives were full of pride. I was not impressed with them dangling the bait of a vastly improved economy over the politicians of the finalist cities, with little to no proof. Not to mention that they are one of the Frightful Five, which means they know more about us than we think. I not only dislike the higher-ups of Amazon, but I do not trust them either. Recently, with the Facebook data mismanagement catastrophe, I have become exceptionally wary of companies who track and store data on me. Amazon is still growing larger and larger, however, which could spell bad news for frequent users of the website. But the bigger they are, the harder they fall, which would be just what those beloved brick and mortar stores need to stay open.

  16. Antonio Chirichiello March 23, 2018 at 8:01 pm #

    After reading the article about Walmart is losing more ground to Amazon. I did not realize how much e-commerce market sales Amazon had compared to Walmart. The company Amazon has over a third of the market while Walmart does not even have two percent. In my opinion, it seems that Walmart has been unsuccessful in the e-commerce industry and, they continue to keep doing worse. The people on Wall Street thought that if there was any company who can compete with Amazon, then it would be Wal-Mart.

    According to the article it states that, “the numbers suggest that if anything, it will be a Walmart struggle and not a straight line there”. The company Walmart cannot keep up with Amazon each year. Even though Walmart’s e-commerce sales have increased, they are not catching up to Amazon the slightest bit. It will take a lot more sales than 2015 and 2016 combined. The sales revenue from each year will not even be close to what the company Amazon reaps each year. The company Amazon grossed $219 billion in revenue in 2017 which accounted for thirty-six percent of the e-commerce market.

    Being unable to compete with Amazon these last few years, the investors are not confident in Walmart. They do not think that their e-commerce business stands a chance against the giant Amazon. All the question in Walmart’s e-commerce business has caused its stock to drop which will bring more worry to come. If people see investors selling stock other stockholders will become emotional and sell, the stock causing unprecedented things to occur. In my opinion, once stockholders emotions start leading their decisions, the stock market becomes unstable. If the investors still believe in Walmart, they should continue to have patients for a couple more years to see if Walmart’s e-commerce market share increases.

    In conclusion, the company Walmart wants to continue to compete with Amazon in the e-commerce industry. Then, they need to innovate new methods to increase sales. If Walmart cannot increase their e-commerce market share in the next few years then, they will not be a threat to Amazon. I believe Amazon will continue to increase their market share within the next few years. Amazon continues to innovate new methods to their e-commerce business which is making them far ahead of their competition. Walmart needs to react now and innovate new ways to keep up with the competition to stay in the e-commerce industry.

  17. John Whale March 26, 2018 at 1:50 pm #

    Amazon is the biggest company out there and there is no reaching them. Walmart was supposed to be the second biggest online shopping company out there. They have made some profit and earning a respectable rise in revenue, but they are nothing compared to Amazon. Amazon in the ecommerce market they make about 37 percent of the whole online sales. Wall Street is even going against Walmart. I guess Wall Street does not want to waste its time in investing in Walmart because no one will ever get to the top or beat Amazon out. Walmart’s stock dropped about sixteen dollars in one day as more and more investors are leaving and going back to Amazon.
    The government must intervene with Amazon. This is because they are becoming way too much of a powerhouse and a monopoly. This is not fair to any other on line store because Amazon literally sells everything. Wall Street should not have pulled out of Walmart and Jet.com because Amazon needs some sort of competition. It is sad what has happened to Walmart and it is crazy that they once were a powerhouse in the store and online until Amazon came around. Amazon is closing so many stores around us because now they can get everything online. This is disappointing to me because I like going to stores and looking at the product and shopping for clothes and trying them on. Now it is kind of a gamble, because you really do not know what you are going to get or if you are going to like it. Especially now that you have to wait two days for a product to get to your house, what are you going to do if you need something last minute, now that all of these stores are closing.

  18. Mark W March 26, 2018 at 3:22 pm #

    As we all know today Amazon is one of the largest and most dominate companies today. As stated in the article “Amazon commanded $219 billion e-commerce sales – 36.2% of the whole market”. Companies today just can’t compete with amazon when it comes to purchasing online. Their marketing online strategy is very relevant and savvy, I feel other companies just can’t compete. For example, “amazon prime” is such a great deal when customers can receive free 2-day shipping with basically any product of your choosing. Sometimes customers receive one day shipping depending on the product and where it’s coming from and it also shows Amazon’s improvement in transportation. “Amazon prime” also includes unlimited streaming of movies, TV shows with Prime Video, and the ability to borrow books from kindle owners. This is something Walmart does not have and can loose a lot of online customers because of all the attributes Amazon Prime contains. I also, appreciate how Amazon supports all college students unlike Walmart for example, the regular cost for Amazon Prime is $100 for the whole year however, if you’re a student you can receive “Amazon Student Prime” for half the price. Amazon clearly has the most control on attracting college students to use their products. Another interesting aspect about prime is depending on the item that you’re purchasing it can get marked down just because you are a student prime member. The final example, is when I was browsing on Walmart’s website for a hair brush and the final price came to about $8 including shipping. I then searched on Amazon and I found a similar hair brush for only $4 including free shipping. Amazon overall, has better pricing and most importantly you also get the free shipping with any item.

    Another dominating internet company that comes to mind is Netflix as well. One reason why Netflix is so successful because of their exclusive TV shows or Movies such as Stranger Things for example. Amazon and Netflix both bring different characteristics to the table that other companies cannot do.

  19. Steven Merunka March 26, 2018 at 4:43 pm #

    Walmart has always been known for their low prices and is seen as the go to shopping store when your budgets are tight and you don’t have a lot of money to spend. Walmart shows that even with low prices they figured out how to still attain revenue with the vendors they deal with. They handle most of their products physically from the vendor to Walmart and then Walmart puts them on their shelves. With online shopping it cuts out some of that physical aspect and is seen as easier to some people. Why drove to a store and look for something they might have rather than opening up your laptop or computer and typing in on amazon and i’ll show it if the item is available in stock.
    Not only amazon but recently companies like Brathwait, a watch company are finding ways to cut out that middle man. The physical distribution that Walmart strived on is slowly being worked around and companies are find cheap and efficient ways to give their customers quality product without having to spend a fortune. And to a degree that is what Amazon is doing. Their taken out the physicality and making it easier on customers to go online and just add items to oa car and have them ship rather than having to have that interacting with people.
    Basics of any industry is it constantly evolves. People also evolve with time not only what they look like, but what they wear and what they want in life. Walmart opened for people who did not have the money to go to expensive places and supermarkets and helped the poorer community to be able to purchase bulk amount like middle class people can but cheaper. Now people are evolving in a way in which they don’t want to go through all the trouble to go out and shop when they could click and figure out ways to get items without having to leave their home. Walmart is adapting to the changes but a slower rate than online companies whose core business principles are within the ending of the computers and started on the digital platform.

  20. Carley H March 27, 2018 at 1:24 pm #

    Today it is so sad how Amazon is literally about to control every market. There only real competitor is Walmart as stated in the article, but even then they really are not a competitor. It is honestly so bad that Amazon is entering just about every market. For example they are about to go into pharmaceuticals and I am sure that they are about to take out all competition. The worst part about Amazon is that they are taking away jobs from people who really need jobs. Don’t get me wrong all of their ideas are brilliant, but to a point they are weird at the same time.
    The supermarket that they just created does not need humans to work there at all. It is run by robots and people just walk in and take their food and they are automatically billed to their Amazon account. For customers it makes it really easy and efficient to go shopping, but on the competitors perspective it takes away jobs from people who need them. On the other hand it is kind of creepy how much their technology is growing where a computer knows who picks what off of a shelf and then bills them straight to their phone.
    In one of my marketing classes, we talk a lot about what Amazon is doing and some is good and others bad. As a class we all agreed that they will eventually take over and knock companies out of business and then raise their prices. In other words creating a monopoly that no one can stop. Honestly, it is just really scary because as consumers we are promoting this to happen by continually buying from Amazon.

  21. Antonia James March 29, 2018 at 10:34 am #

    The showdown between Amazon.com (NASDAQ:AMZN) and Wal-Mart (NYSE:WMT) is a veritable clash of retail titans. Amazon is winning this battle as investors’ have lost confidence in Walmart. Amazon stocks have increased by 23% while Walmart saw a decline of 16%. According to the article, Walmart had $11.5 billion in online sales last year, amounting to 1.9% of a total $606 billion U.S. e-commerce market. Amazon commanded $219 billion in e-commerce sales.
    Convenience has been the number one driving force behind e-commerce sites’ success. In 1999 Amazon accomplished its founding mission of becoming the world’s largest online bookstore. Amazon wasn’t the first online company, but it is one of the most innovative. The Entrepreneurial characteristics of Amazon are innovation and customer service. According to Bezos in an interview, “big things start small”. He believed that everything should be done step by step furiously with passion. He believed that invention is Amazon DNA. His focus is long-term and putting customers at the center of the universe. Wal-Mart brick and mortar store has become the price leader in the retailing industry in the US, with a dominating market share. The efficient supply chain management is undeniably one of the key success factors for the company, enabling the company to grow by leaps and bounds for an extended period of years – a very rare case in the modern corporate success stories. In recent years, Walmart has made its presence in e-commerce and was hoping to contend with Amazon with the acquisition of Jet.com. However, underperformance stemming from operational problems has proven that Walmart has much more work to do if it is to become a true rival of Amazon. According to an article in fortune.com, Walmart CEO Doug McMillon acknowledged that the company had struggled to manage the enormous flow of products like electronics, toys, and gifts into its e-commerce distribution centers at peak times during the holiday season, the abundance of which hurt its ability to get more everyday items in-stock online. These are things Amazon has largely mastered. With innovation, customer service, execution, diversification, and Amazon ” in it to win it mindset” it seems impossible for any retail company can compete with Amazon.

  22. E Fuller April 2, 2018 at 9:18 pm #

    Ever since Amazon expanded its products from just books it has redefined what the norm for retailers is. Brick and mortar store locations are no longer as convenient, or effective leaving companies like Walmart falling behind. Amazon’s business model is bulletproof as it stands today, allowing customers to place orders from the comfort of their own home. While Walmart has invested in keeping their costs down by having the best supply chain management, it may be reaching the limits of what it can accomplish. All while Amazon is charging straight ahead and closing in to opening its second headquarters.
    However, there is discussion amongst competitors that Amazon is becoming a monopoly and needs to be reined in. With “$13.8 billion purchase of Whole Foods has not only roiled the grocery industry but also triggered a government antitrust investigation into the strategies and practices of the “Everything Store.”” (Pearlstine). This investigation could go either way with Amazon being found to be in many markets or it could be split to encourage competition.
    Daniel Schreier mentions above that Amazon simply knows how to better serve an online market and as a result can outcompete Walmart, and I agree. Walmart decided to double down on brick and mortar retail locations and is now running out of room to compete in a world where consumers are enthralled by the ease of Amazons service.

    Pearlstein, Steven. “Perspective | Is Amazon Getting Too Big?” The Washington Post, WP Company, 28 July 2017, http://www.washingtonpost.com/business/is-amazon-getting-too-big/2017/07/28/ff38b9ca-722e-11e7-9eac-d56bd5568db8_story.html?utm_term=.6ad7fbadda49
    Soper, Spencer. “Amazon Reveals Very Long Short List of 20 Cities for HQ2.” Bloomberg.com, Bloomberg, 18 Jan. 2018, http://www.bloomberg.com/news/articles/2018-01-18/amazon-narrows-field-for-second-headquarters-location-to-20.

  23. Stefan S April 5, 2018 at 2:02 pm #

    Amazon is such a powerful competitor when it comes to online marketing. They were the game changer for online shopping and now they only keep expanding. Now amazon has has even started to shift into the produce business. They are the future to shipping you anything you need. They are taking out companies like walmart, whole foods, and even best buy. Amazon also has engaged in the technology business and impacted chain stores greatly. Furthermore, they have even started with clothing stores which will soon diminish stores like macy’s that sell other clothing brands. Amazon is not only expanding into different markets but global markets. In addition, Amazon are going to take out all stores because people will soon be purchasing everything online. Why are consumers purchasing more online? The reason is simple, convenience. Even though some people enjoy going to the store and getting the actual feel of a product, its not as easy as just ordering online. People know their sizes and likes. Convenience is what drives markets nowadays. People want whatever makes their lives easiest, it’s that simple. Amazon is killing it in the markets by making your lives with purchasing products ten times easier. For example, Amazon prime allows you to try and get the product you want within the next day or two with reason.

  24. Brian Graziano April 5, 2018 at 4:42 pm #

    As a shopper of both amazon and Walmart its astounding to see how much these companies have grown and how much revenue they each generate. On the other hand, it is no surprise that Walmart is being topped out by Amazon. With the shift of how technology has developed, it has also changed the way customers do their shopping. With the convenience of having products delivered right to your doorstep, it saves people the time from having to go out. This is not the only reason why Amazon is edging over all of the top competitors. What is there not to like about amazon? They have great customer service, along with having the best prices over any other competitor, and they sell almost every product you can even imagine. After everything is all said and done, with the pace of how Amazon is accomplishing objectives, we may see Amazon putting a lot of close competitors out of business. Although Walmart is one of the top discount stores around, and have had much success, keeping up with amazon will be a huge challenge they may never be able to overcome.

  25. Thomas Johnson April 5, 2018 at 5:34 pm #

    With Walmart and Amazon both being very successful companies it is easy to see how they both succeed in the e commerce world. With the change in technology everything has been changed to online shopping. It is the more convient way to shop so therefore it is important for companies to fill this need of ecommerce to their consumers. Why Walmart shows so much success in the only world is because of their household name to most of the consumers is this country. When people think of cheap products and deals they first think of Walmart because they are use to shopping their for the cheapest price. As Amazon came into place they capitalized on a market that has not be taken yet and are now one of the largest online retailers in the world. With it great pricing and customer service it is hard to top the prices that Walmart puts out to their consumers.

  26. Jesse Rodgers April 5, 2018 at 9:45 pm #

    Both Walmart and Amazon have been two of some of the most successful companies over the last few years. Walmart has dominated years before Amazon became what it is today. Once Amazon became well known it just took off and has not looked back. Walmart a few years ago was the place to shop. It had the best prices around you could buy just about anything you needed there. As technology has advanced so has Walmart in the sense that they added online shopping as fast as they could to stay ahead of everyone. What they did not prepare for was a company like Amazon to do what they have done. Walmart was all I would ever hear about when people would go shopping. Walmart has done some good things over the years to stay on top but it does seem like they are starting to fall behind Amazon. Walmart’s dominance of the retail market may be slowly getting away from them.
    Amazon has been pretty much the only company that has been able to compete with Walmart. Not only have they been able to compete with them it looks as though they are dethroning Walmart. Amazon has been able to match Walmart’s great low prices and also sell just about everything they sell and more. The one thing Amazon has done that Walmart has not is virtually advertise to the younger generation which has a ton of upside. The people they advertise to are the ones who are all about the new technology that is coming out and they do a lot of their shopping online. I think that because of this so why Amazon has done so well. If you ask me Amazon is basically the Walmart of the future and I think that it will be the top “dog” of retail for some time.

  27. Joel Valdez April 6, 2018 at 10:03 pm #

    An article like this shows how unstoppable Amazon has become, in all aspects of what they do. Amazon officials are licking their fingers at an article like this. Walmart has invested countless of millions of dollars in the past few years to bolster their e-commerce capability to become a sizeable juggernaut, able to chomp away at Amazon’s market share. However, this proved to be a bigger task than they expected. They actually proved to be so far behind Amazon, that despite their sales increasing from the bigger splash in e-commerce, their stocks still saw a decrease over long term value. The glaring statistic in all of this is that even though Walmart is consistently growing, Amazon is growing even faster while already being the kings of e-commerce in the U.S. market. Walmart cannot figure out a way to set themselves above and apart from Amazon. I feel this may have to do with the trust consumers have with Amazon, as compare to Walmart. Amazon has not only delivered millions of packages, but has also delivered on millions of promises. The promises of order fulfillment and superb customer service. Meanwhile, Walmart has a different business model where prices are low, however their focus on customer service is something that they constantly looked over. Walmart has further created a culture of shoppers who are primarily concerned with the price of products, rather than other aspects such as quality or customer service. Within these practices, the idea of trust gets lost in translation, so people are not as loyal to Walmart. On the other hand, Amazon has done a wonderful job at combining all of the qualities to gain consumers trust and have them consistently checking back into their app make purchases.

    In addition to Walmart’s low growth numbers, as compared to Amazon’s, Amazon continues to venture into new industries with a worrisome amount of success. They have already mastered the art of e-commerce through a retail setting, but now openly offering more services such as cloud computing, cloud storage, healthcare services, bank services, and more, they are getting their hands in on every market out there. With the brand equity they possess, many mainstay within those industries are sending prayers to a higher power, hoping that Amazon doesn’t get this right and attain success in these new fields. Where Amazon goes, people follow. It is a known fact that Amazon has top-notch security services backing up sensitive information of consumers, and also have a history of success in all sorts of different realms of business. Walmart is trying to compete with one aspect of Amazon, whereas Amazon is already beyond that, trying to poke at the bears of industries. Sure Walmart still sees a higher overall revenue compared to Amazon, yet Amazon is growing at such an almost unsustainable rate, they may not just past Walmart. They might leap them, like they have done to other companies in the past.

  28. Rain Cornelius April 6, 2018 at 10:41 pm #

    Although Walmart is the dominant when it comes to physical retail stores, it does not come close to the amount of sales that Amazon achieves when it comes to e-commerce. Walmart’s main differentiation strategy is their low prices. However, Amazon can offer that along with the convenience of ordering online. We have seen in the news that Walmart is closing hundreds of stores globally over the past few years. Many shoppers are beginning to spend more time using online sites to do their shopping and Walmart’s store sales are declining. In order to keep up with this change in shopper habits, store closures are necessary to line up with their positioning in the e-commerce market and to stay afloat. We have seen other retailers like Toys-R-Us closing because they cannot keep up with the online retailers like Amazon, who offer everything Toys-R-Us does and more, along with the ease of ordering quickly online. Amazon connects consumers with every single type of product from food to electronics. Being able to offer such a wide range of products is an advantage as customers do not need to go to more than one place to get just about anything they could possibly need. Even though Walmart had increased online sales, they will never be able to compete with Amazon in that respect, who have the e-commerce strategy down.

  29. Matthew Martin June 1, 2018 at 6:14 pm #

    When discussing Walmart, most tend to relate it to one of the biggest retail stores in the world, accumulating billions of dollars of sales every year. However, Walmart’s strong points have always been offering convenient physical retail locations as well as having low pricing strategies to allow customers to fulfill their shopping needs at a lower price compared to other retail locations. Now when discussing their e-commerce, its a successful marketplace for them, however not being something people necessarily recognize them for.

    Amazon was built on the foundation of solely being an e-commerce site. They too amass billions of dollars of sales, far surpassing Walmart in that area. Amazon offers the same things Walmart offers, such as low prices and convenience, the biggest difference being everything they sell is available online. As the world and technology are advancing, e-commerce is trending upwards at an extreme rate. More and more shoppers these days spend more amounts of time shopping online for necessities than ever before.

    With that said, physical shopping is on the decline as many products can be bought and shipped right to the customer at their convenience without much hassle. As the world witnesses this, stores such as Walmart are starting to lose business, now having to grow their e-commerce and close locations up to compete with Amazon. An inability to compete will leave businesses dead in the water, and even though Walmart has gotten their online services on their feet, they will unlikely be able to truly be a threat to Amazon as they dominate this particular industry.

  30. elyse cuttic October 12, 2018 at 2:47 pm #

    I completely agree with the articles title, “Walmart is losing more ground to Amazon”. Amazon keeps increasing their sales and brand reorganization. If you shop on Amazon you can really buy anything. Walmart is having to compete with Amazon over their shipping costs. While Amazon offers Prime, this is making their competitors match or do better in order to keep business. The number do not lie, Walmart only bringing in roughly $8.6 billion in e-commerce sales while Amazon is roughly making $219 billion from their e-commerce sales. Those numbers are drastically different. There could be a few factors of why Amazon is dominating the competition.
    Personally, I feel as if Amazon is winning over Walmart is because of their online presence. Walmart is known as a big store, they have a lot of outlets customers can come and shop in. Customers can physically go to the store and pick up things off the shelf. On the flip side, Amazon is known solely to be online. There are no stores people can go to. They are a trusted company with low shipping rates with a variety of items for sale. As a result, customers might feel more inclined to shop with Amazon and they are known to only deal with online purchase. Amazons recent announcement to grow their company may only continue to hurt their competitors.

  31. Anthony Ciaralli October 24, 2018 at 9:11 pm #

    Amazon is one of the leading stores in the United States, and their biggest rival is Walmart. The main difference between Walmart and Amazon is their type of stores. Walmart is the classic store that customers have to go in and buy their products. Amazon is different because mostly everything is online. Being online gives Amazon a significant advantage on reaching customers and maintaining them.
    With Amazon moving into new industries it is hard for companies to compete. Amazon bought Whole Foods and made them an online store, as well as having a physical store. This allows Amazon to have a competitive advantage on companies and even poses threats to Walmart. I think the only way for Walmart to stay competitive with Amazon is by building up an online presence. An online presence will allow for a larger customer base, and allow the company to grow to compete with Amazon.

  32. Sabrina Torres November 2, 2018 at 4:04 pm #

    Walmart and Amazon are the two leading retails companies in the world. This article was chocking to read when it stated that Walmart was losing more ground to Amazon. Considering that Walmart is one of AMazon’s top competitors, it was interesting to read that there share price was down by 16% since its last earnings report.

    Amazon has many more benefits for being an Internet company than Walmart does. Since it is an commerce company, they have a better understanding of the changes of the internet and the change of society. Amazon has stuck to changing their target markets based on the social trends of the generations. That being said, they just released a new clothing store on Amazon that allows customers to pick out clothing and get free shipping back to the store if they don’t like it. I believe that this can be a great success for Amazon considering there is a high rate of people buying retail online rather than in stores.

    Walmart on the other hand, is one of the leading in store corporation in the world. Unlike Amazon, Walmart sticks to their basic ways of marketing their products and not sticking to the social trends of the generations. This is a big reason why Amazon is taking over because they adjust their marketing techniques to the trends in society. This has to do with the advancements in technology that benefits the Amazon company in prospering the way they do. Not only is Amazon taking over the retail industry but they are also becoming more popular in the food industry as well with their acquisition with Whole Foods. This also competes with Walmart in the fact that they sell groceries in their stores as well.

  33. Deep Patel April 12, 2019 at 2:02 am #

    Amazon and Walmart are two retail giants and run the retail world. Walmart is a brick and mortar discount store that is competing with Amazon which is the king of online shopping. Amazon not only dominates retail it also dominates many other industries as well. The main difference is the Amazon sales are all online and with technology there is no stopping this online retail giant. On the other hand, Walmart relies mostly on physical retail stores for there profits. Amazon is far more advanced than Walmart as people are more likely to purchase goods online than go into a retail store to buy them. Online e-commerce is a dominating industry as others try to compete with Amazon. Amazon’s secret for success is customer satisfaction. The company mostly focuses on the customer and is always looking for more ways to provide a variety of goods for cheap prices. They are improving delivery time by adding free 2-day shipping with Amazon Prime. According to a survey by RBC capital Amazon is crushing Walmart in term of popularity and customer satisfaction in online retail business. According to the survey 90% of people used Amazon for online shopping while only 30% used Walmart. Walmart has tried to compete with Amazon by adding online purchases as well but it has not come close in numbers with Amazon sales.
    Walmart is known for having the lowest prices then any other retail distributors could bring to the table. The problem is that Amazon offers all the lowest prices and much more but online and right on the customers’ phones. With increasing technology more and more people are buying products and services online without having to drive to a retail store to purchase an item. TechCrunch put out a stat saying that 79% percent of Americans now shop online because it is more convenient and allows them to purchase goods without getting up from there beds. Walmart being a retail giant in store takes a hit because if more and more people start buying products online, they will have to rely on there online website for sales. There is no competing with Amazon in online retail because they offer the cheapest prices, quickest delivery times, and most products than any other online retail company. Walmart needs to find a way to improve there online shopping for their customers In order to see profits because more people are starting to go away from retail in-store shopping and are headed to online shopping. Competing with Amazon is tough already and with more customers using online shopping this does not boat well for Walmart. Amazon continues to increase their business by merging with Whole Foods, now Amazon customers can buy groceries online and have it delivered to their homes whenever they want. With Amazon looking into the future Walmart will not have any effect on Amazon sales unless Walmart creates some better way for online e-commerce.

  34. Ryan April 12, 2019 at 2:52 pm #

    Choose, click, get. Pretty simple. All without leaving your couch at home. Amazon’s strengths are its speed, ease of use, and of course price. With a standard Prime membership, the platform unleashes a plethora of perks. From its well know shopping site, to its music and video offerings Amazon offers a nearly complete package that is ever growing. Centralized around its online sales, Amazons pricing and expedient shipping has many hooked, even myself. The convenience to find nearly anything and get it in two days (or less) without having to drive somewhere or wait for standard shipping speeds is a massive perk. Compared to Walmart’s online presence, Amazon is much large and more refined. I find their search engines are more optimized, than that of Walmart. Ease of checking out is a major part of why customers return. In a sense, its the last impression they’re left with. Additionally, the shipping speeds and costs are much higher than Amazon. A blend of all these aspects have contributed to Walmart’s lackluster e-commerce growth which has stagnated. Unless extensive redevelopment occurs, I would not foresee Walmart ever taking on Amazon more than it already has. In fact, I would expect it to lessen as time progresses and Amazon invests in local markets and an even more complete experience.

  35. Lillie Moran April 12, 2019 at 3:20 pm #

    Walmart has always had the reputation of being one of the largest companies in the world; however, with Amazon’s continuing rise, Walmart is trying to climb the ladder that Amazon is already higher on. One of the biggest concerns facing Walmart- their ecommerce portion. Companies that conduct business globally, such as Amazon and Alibaba, have already mastered the game at expending through technology, but Walmart is not far behind. Two weeks ago, I attended a forum with two executives of Walmart who spoke about supply-chain management within the company. One of Walmart’s biggest concerns, they said, was that they need to learn from these companies. In order to get Walmart on the radar again, they need to know what these companies are doing right so that Walmart can do it differently. One of the most prominent markets that Walmart is now taking advantage of is the grocery market. And with curbside delivery on the high rise, Walmart is now climbing higher and higher to reach revenue levels with Amazon. Curbside delivery is one way the company plans to make higher revenues as a way to compete with Amazon, and their success in this market is evident.

    With Walmart now offering online shopping, they are easily challenging companies like Amazon in order to compete, but for how long. One of the largest targets of any company right now is to target millennial. Amazon has reached out to this crowd by creating Amazon Pantry, where anyone can order any type of grocery and get it delivered right to their door. One of the most important parts of this is that Amazon now offers an exclusive discount to those who are college students. As a college student myself, I have used this service. I find it easy to use, and there are discounts on Amazon that I cannot find while in a grocery store. If this is the case, what is Walmart planning on doing to compete? Walmart needs to focus on the younger generation. There has to be an easier way for Walmart to target a younger audience. But as a large company that has its own foundation reputation, this might now be the easiest thing to do. Walmart will have to reconsider its foundation. They will have to speak us if they want to out number Amazon.

  36. Demetri Allen April 12, 2019 at 7:01 pm #

    I was born in the year 2000 and it has become very apparent that society back then is very different than it is now. More specifically, many businesses I grew up with are not around anymore. The biggest example being the video rental retailer Blockbuster which I myself used to travel to in order to rent my favorite movies and video games. Now Blockbuster is almost completely non-existent because it beat out by the popular streaming service Netflix. It makes sense why these things happen when technology advances or an industry changes, but now it seems like some of the stores I used to go to like Circuit City, Radio Shack, and Kmart only exist for nostalgia. However, Walmart is still standing, for now at least. Amazon has become such a titan in the industry that it has started to become hard to compete with. We saw this with Toys r Us in 2017 and now some people are speculating the same with happen to Walmart. However, I think the opposite. Amazon is a place where you can buy almost anything but the only sector, they are lacking in is delivery. Some products have same day delivery but only if you live near an Amazon distribution center. They have started initiatives like using drones to deliver packages and have employed their own delivery service with company vehicles, but both are still in their infancy. Amazon wants to sell its appeal that you can get whatever you want without leaving your house, but Walmart is one of those places that could never go away. With over 6,000 stores across the US Walmart has solidified itself as a store that people are still willing to get up and go too. You can’t wake up at noon and order food from Amazon in time for dinner and other certain necessities are far more urgent that one couldn’t rely on the postal service. That on top of the brand loyalty Walmart as gained over the years.

  37. Divyaa Sarin April 12, 2019 at 7:40 pm #

    It comes with no surprise that Amazon is beating Walmart in e-commerce sales. Amazon which is primary digital on every platform is available to everyone with internet access. Whereas Walmart has both actual stores and an online platform. One would assume that since Walmart has more resources, it would dominate the consumer platform. However, it seems as if Amazon nearly offers anything that a consumer would want. Amazon’s quality of products has a strong creditability. On the other hand, Walmart’s product credibility isn’t as high. Society tends to talk negatively about Walmart. Due to societal trends, it seems that consumers have stopped purchasing products at Walmart or even online. Amazon tends gain consumer interest by offering more types of products and quick shipping methods. Both Walmart and Amazon are fortune 500 companies as well as high competitors in the market.

    Personally, I never shopped at Walmart. Due to this, I can’t really form a strong opinion against the company. However, I happen to always purchase products from Amazon because it is personally easier for me. I have noticed that our society is very lazy, which is why many people prefer to online shop. I think both companies have similar methods of trying to make their products cheaper for consumers. Sometimes cheaper prices are due to the quality of the product. As mentioned before, it seems that Walmart quality has been reject by our society. As an Amazon consumer, I never had any problems with the quality of the products I have purchased.

    It is important to acknowledge the factors of advantage both Walmart and Amazon have to offer. Amazon seems to be creating more products with technology than Walmart has. Amazon released the Echo, which many consumers have favored since it first released. Whereas Walmart offers technology but not mainly from their company. Walmart has an advantage by having physical stores consumers can get products from. If an individual needs to purchase a product and needs it in the same day, they can physically go. They wouldn’t have to wait or pay for shipping.

  38. Luke April 12, 2019 at 8:15 pm #

    I remember years ago everyone had this impression of Walmart as this huge behemoth that had an unbeatable market share in the US and had super affordable prices that made the overall store more attractive to the average consumer that needed food, clothes and other items quick and cheap. In my opinion Amazon is tailoring to a newer and younger audience that has different priorities. Amazon’s goal is to disconnect the consumer from their wallet and make shopping happen within one click. Many features of Amazon help perpetuate this idea. Users with an Amazon Pantry can click a button in their cabinet when food is empty and within two days, replacement food will be delivered straight to their house. Walmart differs because it requires the consumer to locate a Walmart and drive there. Within the time of driving the consumer might change their mind on what to buy or even if they need anything. For Amazon these key features are never a problem.
    However, I think one of Walmart main advantages is that it persuades consumers to buy products they don’t need because they are already in the store and easily add something to their cart and checkout. Although the Amazon is expanding to more physical locations, it isn’t likely to take the scale of Walmart. Amazon’s focus is to dominate the internet landscape and utilize technology to their advantage. The digital integration of retail is where Walmart lacks because of their lack of infrastructure. Amazon’s plan for the past decade was to build major warehouses and distribution centers within areas that are in radius to a major city. In addition Amazon has been speeding up their delivery time to make online shopping incredibly viable for consumers. Now Amazon is in the phase of making same day delivery happen within a matter of hours while keeping the price down. One strong point that Amazon has used to its advantage is a loyalty program designed as a subscription service that offers perks like faster delivery. By having consumers pay additional money for a loyalty program creates the connection between the brand and the individual. The consumer now feels compelled to shop there because they pay for additional perks. These integrations paired with Walmart’s lack of focus on digital shows that a company needs to be adaptive in order to survive. A lot of the time the public has seen this with the major titans like Sears and Blockbuster, watching them fall for their lack of emphasis on the times.

  39. David Torres April 12, 2019 at 8:24 pm #

    There’s no doubt that Amazon is progressing so fast, becoming a monopoly, and it’s happening right before our eyes. Amazon is pushing big name companies such as Walmart off the center stage. I remember reading on the CNBC app recently that Amazon is making moves to enter into the medical industry and begin to sell prescription drugs to people that need them. Not only will this completely wipe out pharmacies, but it will also reward Amazon by being one step closer to becoming the entire market of all things you could ever purchase. There has never been such a company that has achieved such explosive success in its existence. Amazon generates more than 230 billion dollars in revenue each year and giving them the title of the world’s largest retailer. At the time of this article, a leading Wall Street bank downgraded Walmart’s shares by more than 16% since its last earnings reports on Feb. 20th, 2018. Meanwhile, Amazon’s shares soared by more than 23% in a year. I’m sure that even the experts on Wall Street will agree that Amazon is soon to be the entire market, leaving all other retailers out of business. The reason why Amazon is becoming such a powerful force in the world of business is because of the service, they go the extra mile for the customers, accepting almost all returns in any situation. Additionally, Amazon’s shipping service is so incredibly convenient because of how quick your item arrives at your doorstep. Not to mention that it is always free shipping, just makes everything 10 times better. To outperform a company such as Amazon and the plans it has for the future to expand into other industries and markets is something not many other companies have. There is a book called “The Four” by Scott Galloway, where it talks about the why The four giants, Apple, Amazon, Facebook, and Google run the world, as well as informing the reader of the hidden DNA of these companies. Just these four companies alone have generated more than 2.3 trillion dollars of unprecedented wealth, giving wealth to numerous families across the globe through stock ownership and allowing them to achieve financial security.

  40. Niurka P April 12, 2019 at 10:34 pm #

    With Amazon and Walmart competing over e-commerce sales, it is really not a shock that Amazon is in the lead. Amazon revolves themselves mainly around their online website whereas Walmart has stores and an e-commerce platform. Walmart is known for their affordable prices and mass amounts of items from gardening utensils to arts and crafts items. Amazon is beginning to appeal to Millennials, Gen Z, and younger generations who prefer to shop online. Amazon also is opening stores that do not require interaction with a cashier. All one would have to do is walk in logged into the Amazon app and anything they decide to get will be automatically added. Once they walk out of the store, they are charged for what they have in their cart. Walmart does not offer this option, so Walmart shoppers are forced to wait in long checkout lines.
    With any supermarket, there is temptation surrounding one in every aisle. Even if there is no need for the item, the fact that it is right in front of you is making it more tempting to put into your cart. Walmart has the advantage with this, but Amazon does not as of right now. Amazon has very few locations open right now compared to Walmart. Walmart is popular to younger generations due to the lower prices that Walmart offers for their items. However, they are taking over the Millennials and Generation Z with their e-commerce sales. College students are also a big portion of their sales because of the low prices combined with Amazon Prime that includes a student discount. As an avid user of Amazon Prime, the student discount combined with free and fast shipping definitely comes in handy and convinces me to use Amazon more.
    Although Walmart is declining in e-commerce sales, they are still a very convenient store that is in good standing. Walmart’s low prices combined with their store hours help many people that have a Walmart around them. Walmart is one of those stores that will stay standing for a very long time because of the crowd that they bring in. Most Walmart stores even have food stands such as Subway or McDonald’s inside to accommodate hungry customers. Walmart overall has the customer’s feelings in mind with their store. They accommodate to a consumer’s needs of available prices and quick, hot food.
    Overall, Walmart and Amazon are both stores that deserve recognition for the advances they are making to their stores.

  41. Claudia Ralph April 16, 2019 at 9:11 pm #

    It doesn’t take a genius to figure out that Amazon is rapidly taking over the world of retail. I am pretty sure that my mother orders something off of Amazon AT LEAST once a day. The convenience is a no-brainer for people like her who work full-time or people like me who can’t get to the store or who do not simply have the time.
    It is no surprise that Amazon continues to dominate the e-commerce space as well as other retail spaces where it competes with Walmart. The array of selection completes beats out anything that could be held in a Super Store with just a click of a button and very little work done besides just searching.
    Why is Amazon so rapidly taking over these spaces that Walmart and others of its kind once dominated? Like I mentioned before, the idea of convenience. Going to Walmart can be a task and extremely time-consuming. While 90 percent of Americans live within a 15 mile radius of a Walmart (I grew up as not one of these people fun fact), ordering something straight from your computer is much less time consuming than lugging your stuff all the way from the store. The tangible aspect of Walmart is great though and is especially helpful if you do not have the time to wait for your products from Amazon to ship to you. But with Amazon increasing its delivery speeds and of course continually updating what is available on Prime in terms of perishable goods, Amazon will singlehandedly continue to drive Walmart’s sales into the ground. Especially in the days where Americans are lazier and lazier, Amazon dominates people’s minds when they are thinking of ordering something online.
    I am not a good person to measure the Walmart effect though. I probably have been to Walmart less than 10 times in my whole life, each one more begrudging than the one before. I would much prefer to order something from Amazon or go to the nearest grocer. Not to mention that Walmart has an extreme stigma attached to it.

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