Walmart’s 35-Year Reign Is Over — Amazon Is Now #1
- machristineoffice
- 18 hours ago
- 2 min read
They’re OUT as the World’s top retailer.
They still had a record year at $713.2B, mind you.
Just not enough to beat Amazon’s $716.9B.
Many will attempt to over-complicate this.
“Amazon owns AWS, so this doesn’t count.”
Confirmation bias is always all over this argument.
We argue for what we want to be true. ✔️
Yes, Amazon owns AWS.
That’s kind of the point here.
Retail has become all about Tech.
It’s just as true for Walmart and Kroger.
Amazon is just further ahead.
Here’s what Amazon’s new crown means for the Industry:
𝟭. 𝗚𝗿𝗼𝗰𝗲𝗿𝘆 𝗶𝘀 𝗻𝗼𝘄 𝗮 𝗱𝗮𝘁𝗮 + 𝘁𝗲𝗰𝗵 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀.
Retail is shifting from just stores to tech ecosystems.
Walmart is no exception, investing heavily in tech.
Kroger’s Ocado relationship is further proof.
Amazon is ahead, but this is retail’s future.
𝟮. 𝗥𝗲𝘁𝗮𝗶𝗹𝘀 𝗳𝘂𝘁𝘂𝗿𝗲: 𝗦𝗲𝗹𝗹𝗶𝗻𝗴 + 𝗺𝗲𝗱𝗶𝗮 + 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀.
Yes, Amazon’s revenue isn’t just product sales.
It’s stores, Prime Video, ads, AWS, Ecom, etc.
Remember, Walmart bough Vizio and SmartCast.
𝟯. 𝗘𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝘄𝗶𝗹𝗹 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲 𝘁𝗼 𝗲𝗮𝘁 𝘀𝗵𝗮𝗿𝗲.
“E-commerce is going to slow down soon.”
That argument was wrong last year, the year before, and back in 2020.
Digital penetration sets new YoY records every month.
How many times do I need to be right?
E-com IS here to stay, more every day.
𝟰. 𝗛𝘆𝗯𝗿𝗶𝗱 𝘄𝗶𝗻𝘀 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺.
This is where Walmart still has the advantage.
Walmart: 5,212 retail doors.
Amazon: 550 doors + 780 partner doors.
As e-com chips away at retail, delivery chips away at e-com.
Look, I’m wildly bullish on Walmart long term.
Walmart is my second largest stock position.
But let’s not miss the forest for the trees.
Amazon’s unseating of Walmart is a sign post.
We are living in a VERY digital World.
And it gets more digital by the day.
What do you think?
Have you ever purchased on Walmart.com?
Could you see it being your go-to for e-commerce?
My two cents.
Every brand needs a Walmart strategy.
Every brand needs an Amazon strategy.
BUT, neither are going anywhere anytime soon.
I believe they are the right place.
The right time is when you can afford it.
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We drive velocity in Sprouts, Whole Foods, Walmart, Target, Walgreens, CVS, Kroger, Sam's, COSTCO, and lots of other retailers.
We grow brands on Amazon.
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