For the first time, Amazon's earnings report details physical store sales, which totaled $1.3B in Q3. Amazon's biggest physical retail move was its acquisition of Whole Foods, adding 365 stores. Walmart's 5,000 locations puts it further ahead in brick-and-mortar retail than Amazon is in e-commerce.Īmazon now has 13 bookstores, dozens of pop-up stores and partnerships to put products in stores run by Kohl's and Safeway. "At the end of the day, retailers that are properly digitally enabled with a strong retail presence will win," he said.Īs Walmart is turning itself into an e-commerce player, Amazon is turning itself into a major physical retailer, but it has a huge gap to make up.
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Though e-commerce steals the headlines, physical retail still accounts for 90% of all retail sales, according to Suarez. In voice shopping, it hooked up with Google, which has signed up other chains such as Target and Home Depot to fight the dominance of Amazon's Alexa-powered Echo devices. Walmart is also forging alliances outside retail. Rent The Runway's founder Jennifer Fliess joined Walmart earlier this year. Jet.com’s former CEO, Marc Lore, is now the head of e-commerce at Walmart. The purchases come with e-commerce talent and institutional knowledge. Parcel, Bonobos, Modcloth, and Jet.com are the company’s most recent acquisitions, for an estimated total cost of $4B. Walmart is building its own alliances by outright buying partners. You can now buy an Amazon Echo in the produce section of Whole Foods. Best Buy is teaming up with Amazon for voice shopping. The owner of Sears is selling Kenmore-branded appliances on Amazon in some markets. Kohl’s now has an Amazon section in stores and will return items bought through Amazon. Nike signed an exclusive deal with Amazon. You will not find any Nikes being sold by Walmart online. Known for its contentious history with suppliers, the world’s largest retailer has become more accommodating, offering better financial terms and ease-of-use for third-party sellers on its site. Nearly all of that growth can be attributed to relatively small third-party sellers instead of Walmart bringing in new wholesale vendors. With its latest quarterly update, management said it has 50 million items for sale through its online marketplace. In the first quarter of 2016, Walmart had just 10 million items on its website. Walmart is working to challenge that model. Meanwhile, eMarketer expects Walmart's market share to grow from 2.8% to 3.6%.Ī major reason for Amazon’s dominance is its perception as an online mall, offering over 50 million products from roughly 2 million sellers. e-commerce market this year, up from 38.1% last year, as reported by Recode. A new report from eMarketer predicts Amazon could take 43.5% of the U.S. Walmart is the third-largest online retailer, but it is still far behind Amazon, which continues to dominate e-commerce.