Wal-Mart Stores, Inc. (NYSE:WMT), American multinational retail corporation is facing immense pressure from one of its biggest competitors Amazon.com, Inc. (NASDAQ:AMZN) over the past few months. Amazon has launched many new services, expanded its business in different countries. The biggest edge for Amazon over Walmart is its online expansion and growth. Discussing Wal-Mart Stores, Inc. (NYSE:WMT)’s business opportunities for the future and its comparison with Amazon in a program on CNBC, Inc. (NASDAQ:AMZN), Jan Kniffen, J. Rogers Kniffen Worldwide CEO, and Gian Fulgoni, comScore executive chairman, said that Amazon is currently leading the retailers in the US and Walmart has to focus on its online customers to compete with Amazon.
“[…] Wal-Mart Stores, Inc. (NYSE:WMT) has to be the player, they are the second largest seller online behind Amazon.com, Inc. (NASDAQ:AMZN), they have to continue that growth, 25% a year is a pretty good growth rate, if they are going to be able to be a successful competitor across the board. Right now, they are the biggest retailer in the world, but Amazon is the biggest online retailer in the world, well, Alibaba is the biggest I guess, Amazon is the biggest one here […],” said Kniffen.
Fulgoni said that Wal-Mart Stores, Inc. (NYSE:WMT)’s online retailer contribution is very less and the company is investing to do something about it, but most of the business dynamics are dependent on Amazon.
“If you look at Wal-Mart Stores, Inc. (NYSE:WMT)’s business, I think their only about 2% of that total sales are done online now, so, it’s not a big component as yet, but clearly they are putting a lot of attention against it. I think one of the concerns looking down the road not just for Amazon.com, Inc. (NASDAQ:AMZN), but I think for all of the grocery retailers is what Amazon is likely to do, because if Amazon.com, Inc. (NASDAQ:AMZN) starts to roll out from the West coast, ‘Amazon Pantry’ and ‘Amazon Fresh’, given the infrastructure that they already have in place, I think that is going to be bad news for any of the physical stores retailers selling grocery products,” said Fulgoni.
Disclosure: None
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