News & Media

Can Amazon beat Wal-Mart?
July 15, 2017
Source: Can Amazon beat Wal-Mart?
One analyst believes that Amazon is a big underdog when it comes to competing against Wal-Mart for grocery retailing. Andrew Hemingway, Director of Strategic Planning with GYK Antler, writes “as Amazon works to scale up and overtake Wal-Mart in the $800 billion U.S. grocery market, (of which Wal-Mart currently controls 25%, compared to Amazon’s 0.8%), the race will not be evenly matched. I believe that for the foreseeable future one will continue to dominate—Wal-Mart.” He noted that “when it comes to groceries, all the technology in the world still hasn’t put Amazon in command of one of humankind’s oldest challenges—delivering fresh food to people quickly and cheaply enough to make money off it. Amazon’s entry into the grocery delivery world, Amazon Fresh, is still very limited, despite the fact that it began a decade ago and was in beta for six years in Seattle.” Wal-Mart, on the other hand, can use its enormous store network of around 5,000 stores to facilitate its own e-commerce deliveries. Click the link to view the video: