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Walmart vs Amazon: Who will win the war? 

Walmart vs Amazon: Who will win the war? 
Walmart vs Amazon: Who will win the war? 

Walmart (NYSE: WMT), the biggest retailer in the US by revenue, is facing stiff competition from Amazon as the e-commerce giant closes in on Walmart’s lead. With Amazon’s sales growing at twice the rate of Walmart’s, the battle for retail dominance is heating up.

In 2023, Walmart’s sales reached $648 billion while Amazon hit the $575 billion mark. But according to Hawk Insight, Amazon is showing a growth rate of 12%, compared to Walmart’s 6%.

Amazon (NASDAQ: AMZN) could be taking the lead on US soil since it’s expected to reach $700 billion by the end of 2025, at which point it would overtake Walmart. 

Walmart: Expansion and sales success

The retail giant reached a new milestone during its first quarter when total revenue reached $161.5 billion – an improvement of 42 basis points on its gross margin. Global e-commerce sales also increased by 21%, due to store-fulfilled pickup and marketplace services.

Moving forward, Walmart will be expanding some of its stores, as well as launching a high-end food series to attract a new segment of customers. It’s been focusing on consumer behavior to better understand market changes, and to capitalize on growth strategies. 

Walmart might be the biggest retailer in the US, but it needs to add approximately $26 billion in sales each year to its 4% growth target. It’s also facing internal challenges: upcoming layoffs and a push to bring remote workers back to the office.

Amazon investing in customer satisfaction

Amazon, meanwhile, is expanding into new territories as well. The online retailer set up shop in South Africa, and also reported a 13% increase in net sales during its first quarter. 

But Amazon’s success goes beyond e-commerce sales. The company’s growth strategy includes capitalizing on its AI investment. Earlier this year, it invested $4 billion in Anthropic, the company behind the Claude 3 AI chatbot. 

At the time, vice president of Data and AI at AWS, Swami Sivasubramanian, said Claude 3 combined with Amazon’s AWS infrastructure “unlocks exciting opportunities for customers to quickly, securely, and responsibly innovate with generative AI.”

“We believe our strategic collaboration with Anthropic will further improve our customers’ experiences, and look forward to what’s next.”

Image sources: Walmart and Amazon

About the author

Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.

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