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Amazon vs. Walmart

Amazon vs. Walmart

Consumers now spend more at Amazon than at Walmart.

According to corporate and industry data, Amazon has surpassed Walmart to become the world’s largest retailer outside of China, marking a watershed moment in the shift from brick-and-mortar to online shopping, which has altered how people buy everything from teddy bears to cars.

People spent more than billion on Amazon in the 12 months ending in June, according to Wall Street estimates published by financial research firm Fact Set. This was fueled in part by increased demand during the pandemic. Walmart reported $566 billion in revenue for the 12 months ended in July on Tuesday.

Alibaba, the world’s largest online store, is the world’s largest seller. In China, neither Amazon nor Walmart is a market leader.

Amazon has dethroned one of the most successful and feared firms in recent decades by speeding past Walmart. Walmart perfected a lucrative big-box retailing strategy by squeezing every penny out of its costs, which resulted in lower prices and the annihilation of competitors.

Despite this efficiency and strength, the battle for dominance in today’s retail environment is being won on the internet. And no corporation has capitalised on this more than Amazon. Indeed, the company’s fast delivery (many things arrive on doorsteps within a day or two) and extensive range enticed people to online shopping in the first place, and has kept them coming back ever since. Additionally, it has made Jeff Bezos, the company’s founder, one of the world’s wealthiest people.

“This is a watershed moment,” said Juozas Kaziukenas, founder of the research firm Marketplace Pulse. β€œWalmart has been around for a long time, but Amazon has a distinct approach and has displaced them as the No. 1 retailer.” Wall Street corporations had anticipated a change in ownership of the retail sector in the coming years. However, the pandemic hastened the schedule, as those trapped at home rely on deliveries. Walmart’s sales increased significantly during the epidemic, but they fell short of Amazon’s expansion, which has constructed hundreds of warehouses and hired over 500,000 people since last year’s start.

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This article on β€œAmazon vs. Walmart” has been compiled by Ansh Kumar Farshwal, London School of Business and Research, UK

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