Amazon Forces Wal-Mart To Step Up Its Online Store

Amazon Forces Wal-Mart To Step Up Its Online Store

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Wal-Mart (WMT) customers that began shopping with the giant during the recession are now rediscovering the convenience and deals that Amazon (AMZN) provides, according to Kantar analyst Bryan Gildenberg. Previously, Wal-Mart did not see the need to focus on their online store because of the inflow of new customers with reduced budgets. Only a quarter of their customers shopped at Amazon then, but now half say they do, according to Bloomberg. (STAY AHEAD OF THE CURVE: Follow Kapitall on Twitter)

The shift of young, tight-budgeted shoppers from Wal-Mart’s stores to Amazon’s site has forced Wal-Mart to start focusing on revamping the e-commerce aspect of their business. Amazon’s growth has allowed them to begin selling daily products that Wal-Mart normally sells, such as diapers and trash bags, and Wal-Mart has responded with the purchases of different Web-related companies to build its online expertise. (via Bloomberg)

Their soon-to-be online slogan “Anytime, Anywhere” vocalizes their plans to use stores as pickup centers for online shoppers. Customers will be able to order items online and have them shipped to their local store to be picked up same-day, which most of their online shoppers already do.

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Do you think Wal-Mart will be able to become a larger player in the online retail space to compete with Amazon? Use Kapitall tools below to analyze the two companies.


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*Written by Danny Guttridge.


One response to “Amazon Forces Wal-Mart To Step Up Its Online Store”

  1. (WMT) has never succeeded in its online store. (AMZN) commoditized the area, so this is again a fatal step for WMT. WMT should continue to find ways to leverage its store-format instead of going towards the AMZN path.

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