Amazon Store Plans Elevate Epic Fight With Walmart For Retail Dominance

In an epic battle for retail dominance, Amazon (AMZN) is planning to build its first large-format retail stores, it was reported Thursday, coming as the e-commerce giant is now reportedly outselling Walmart (WMT). Amazon stock dipped while Walmart edged up.


The Wall Street Journal on Thursday reported that Amazon is planning to open several large physical retail locations in the U.S., starting with California and Ohio. The new stores will be around 30,000 square feet. That’s less than one-third the size of the average Walmart and one-sixth the size of a Walmart Supercenter.

Amazon stock dipped 0.4%, closing at 3,187.75 on the stock market today. Walmart stock edged up 0.7%, closing at 150.11.

Walmart, the behemoth of brick-and-mortar discount stores, is dueling Amazon, the giant of online shopping, in a battle over the future of retail, e-commerce and grocery shopping.

Amazon Stock: Now Outselling Walmart

A report by the New York Times on Tuesday suggested Amazon has gained a leg up. The report said Amazon has eclipsed Walmart to become the world’s largest retailer outside China. That was based on corporate and industry data compiled by FactSet, after Walmart reported quarterly results.

According to the data, consumers spent $610 billion at Amazon from June 2020 to June 2021. In that same period, shoppers spent $566 billion at Walmart.

The shift in sales came sooner than expected. Amazon stock analysts thought the shift from Walmart would arrive next year. However, the pandemic accelerated the timeline, as shoppers relied heavily on home delivery. Walmart’s sales jumped during the pandemic, but not as high as Amazon’s.

Walmart and Amazon declined to comment on the reports.

Much is at stake in the battle between the two retail giants. The National Retail Federation anticipates that retail sales will grow between 6.5% and 8.2% to more than $4.33 trillion in 2021 as more individuals get vaccinated and the economy reopens.

Amazon stock is trading right about where it started this year, as is Walmart stock.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.


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