Walmart's Reign as America's Biggest Retailer Is Under Threat (wsj.com) 48
With Amazon on its heels, the nation's biggest company by revenue is hunting for ways to continue growing. From a report: For a decade, Walmart has reigned as the nation's biggest company by revenue. Its sales last year added up to $648 billion -- more than $1.2 million a minute. That status comes with benefits. It gives Walmart power in negotiations with product manufacturers and in dealing with government officials over policy issues. It's also a point of pride: Job postings often tout working at the "Fortune 1" company as a perk. Its reign is looking shaky lately [non-paywalled link]. If current sales trends persist, Amazon is likely to overtake Walmart soon. Amazon reported $575 billion in total revenue last year, up 12% from the previous year, compared with Walmart's revenue growth of 6%.
Walmart's behemoth size means that to meet its own sales target of around 4% growth each year, the company has to find an additional $26 billion in sales this year. That's no easy task. About 90% of Americans already shop at the retailer. The pandemic and rising inflation boosted Walmart's revenue by $100 billion since 2019. It faces continued uncertainty in consumer confidence and while it's spending in some areas, it's pulling back in others. Earlier this week, Walmart told workers it would cut hundreds of corporate jobs and ask most remote workers to move to offices. While Amazon's and Walmart's businesses compete head on, there are big differences. Amazon earns much of its profit from non-retail operations such as cloud computing and advertising, while grabbing retail market share with fast shipping. Walmart gets the bulk of its sales and profits from U.S. stores, while growing side businesses like advertising and digital sales.
Walmart executives are most wary of Amazon's ability to keep increasing profits through its non-retail business, while eating more of the retail landscape with ever-faster shipping and a bigger product selection, people familiar with the company said. Internally some executives are highlighting Walmart's role as a good corporate citizen and emphasizing that it's important to be the best at serving customers and workers, not just the biggest, say some of those people. Its scale can also have downsides, say some, like outsize attention on every misstep.
Walmart's behemoth size means that to meet its own sales target of around 4% growth each year, the company has to find an additional $26 billion in sales this year. That's no easy task. About 90% of Americans already shop at the retailer. The pandemic and rising inflation boosted Walmart's revenue by $100 billion since 2019. It faces continued uncertainty in consumer confidence and while it's spending in some areas, it's pulling back in others. Earlier this week, Walmart told workers it would cut hundreds of corporate jobs and ask most remote workers to move to offices. While Amazon's and Walmart's businesses compete head on, there are big differences. Amazon earns much of its profit from non-retail operations such as cloud computing and advertising, while grabbing retail market share with fast shipping. Walmart gets the bulk of its sales and profits from U.S. stores, while growing side businesses like advertising and digital sales.
Walmart executives are most wary of Amazon's ability to keep increasing profits through its non-retail business, while eating more of the retail landscape with ever-faster shipping and a bigger product selection, people familiar with the company said. Internally some executives are highlighting Walmart's role as a good corporate citizen and emphasizing that it's important to be the best at serving customers and workers, not just the biggest, say some of those people. Its scale can also have downsides, say some, like outsize attention on every misstep.
One shitty company for another. (Score:2)
One company who treats their employees like shit is surpassing another that treats them like shit. What a world.
Re: (Score:2)
These are the concerns of lawyers beating the drums for lawsuits.
I am not the -1 troll here.
Re: (Score:2)
I am not the -1 troll here
No, you're still modded at 2 as of this post.
Both Amazon and Walmart are extremely well known for treating their base level workers like utter shit. Just go shopping at any Walmart, the employees are fucking miserable. Now try Costco, a similiar company known for treating their employees well. Generally pretty happy employees.
Re: (Score:1)
Interesting you posted this.
I likely do 99% of my shopping and purchases from Amazon...I pay for Prime, I might as well get all I need delivered.
I spot check prices on things at other places....and for the most part I find wha
Re: (Score:2)
I think I'm hungry and rambling now....?
A little :)
I'm a sucker for a good value buy myself though and Costco is awesome.
It really does treat it's employees well too https://ethicsunwrapped.utexas... [utexas.edu].
Re: One shitty company for another. (Score:2)
Nice advertisement for Costco. Don't forget to mention how their expiration dates are notoriously soon. That together with the forced bulk buying can result in a lot of wasted food. And every visit is a 2-3 hour investment in time. At least with Walmart you can order online and get pickup: in and out in 5-10 minutes.
Re: One shitty company for another. (Score:2)
It's the opposite here. Walmart is far more crowded . There are 50+ people in line at self checkout .
The inventory is never up to date. Half the time an item that the web site says is in stock is nowhere to be found.
Costco in comparison is a breeze.
Checkout goes very quickly rmdue to bulk items.
I truly loathe shopping at Wal-mart, but enjoy shopping at Costco.
Amazon is not even a part of the conversation for groceries due to the high delivery fees, at least for perishables.
Re: (Score:2)
Agreed...I just use Amazon for most all non-food purchases.
Re: (Score:2)
There are still Walmarts where pickup is in store???
Parking lot pickup took over hear I don't know how long ago.
And then we got the walmart++ (or whatever it's called); untippable home delivery.
On the rare occasion that I'm inside it these days, it's generally because it's the closest grocery store (by a couple of miles; my neighborhood is so bad these days that it would qualify as a "food desert" without walmart) and we need something quick.
Delivery has been faster than amazon at least since 2020, and pric
Re: (Score:2)
I guess I could sound a bit like a Costco ad....I just really like the place.
I mean, if I had to move...deciding WHERE I would go, would depend on how close a Costco was to me.
And for expirat
Re: (Score:2)
Don't forget to mention how their expiration dates are notoriously soon.
Huh, maybe your Costco has shitty order people because I'm often surprised how far out some of their fresh items have their expiration dates set to. I did get a bunch of baby carrots a few months ago that turned out to have a close expiration date and lost a good amount of them to spoilage but that is definitely not the norm for me.
That together with the forced bulk buying can result in a lot of wasted food. And every visit is a 2-3 hour investment in time. At least with Walmart you can order online and get pickup: in and out in 5-10 minutes.
I shop in the morning by myself and am in and out of my local Costco in about 30 minutes and that includes time for a quick $1.50 hotdog snack or some cheap pizza and of course b
Re: (Score:2)
...grind and stuff my own sausages, etc...
Sorry for the second reply but I was thinking, are you able to get intestine for your sausage casings from Costco as well?
While I'm a pretty decent home cook you sound a bit next level at least in regards to meat then myself but I've been playing around with the idea of getting more involved with stuff like that as I think it's cool and just generally better to be closer to the production of ones own food. While I'm lucky enough to live in a town that has an actual, dedicated butcher shop where I could pro
Re: (Score:2)
If you're that against Amazon the simple solution is to not buy from them.
But then I do realize that is so simple it can't be done.
Re: (Score:2)
While he maybe against using Amazon and Walmart he is well within his rights to also voice his opinion as well.
As soon as Amazon/Walmart stops promoting themselves and just relies customers just using them then you may have a point.
Re: (Score:2)
What makes you think I buy from them anymore?
This. (Score:2)
My dead mother-in-law worked for them before and I have a at least one extended family member who is a Walmart manager. They're absolutely, ruthlessly, devoid of any humanity whatsoever.
The evil shit they've done including trying to undermine federal health law means the wife absolutely refuses to give them money under any circumstances.
Amazon is probably not better, but I do not personally know people whose lives they ruined.
Re: (Score:2)
Yeah, I dont shop at Walmart either. I wont spend my hard earned money enriching garbage people.
Sorry to hear family of yours had to deal with that.
Fair payback, for destroying countless small shops (Score:2)
Fair payback, for spending the last 4 decades destroying small mom n' pops, and sometimes entire towns.
Re: (Score:3)
Fair payback, for spending the last 4 decades destroying small mom n' pops, and sometimes entire towns.
Amazon is so much more equal opportunity. They still destroy small shops but they also destroy large shops and urban shopping malls. So much better.
Re:Fair payback, for destroying countless small sh (Score:4, Informative)
Amazon is so much more equal opportunity. They still destroy small shops but they also destroy large shops and urban shopping malls. So much better.
Yeah. *after* Wal-Mart already incinerated the retail landscape.
FWIW, malls did this back in the stone age. Santurce, PR was a bustling town hooked up by trolley rail and bus, to most of the island. The main drag had all the nice movie theaters, etc.
Then, in 1968 -- the year before i was born -- Plaza Las Americas opened, and was expanded in 78-80. That place *demolished* Santurce. It turned into a run-down haven for druggies, homeless, etc. The beautiful cinemas were shuttered, or reduced to grindhouse or porn.
I've seen it all before, and none of it invalidates the idea Walmart needs to be taught a lesson about hubris, and who best to teach it to them than Amazon.
Don't worry, one day someone will come and lay waste to Amazon. Maybe it'll be a resurgence of the downtown experience, maybe it'll be Walmart who does it.
Re:Fair payback, for destroying countless small sh (Score:5, Interesting)
Don't worry, one day someone will come and lay waste to Amazon. Maybe it'll be a resurgence of the downtown experience, maybe it'll be Walmart who does it.
In the current climate, I'd be willing to place a small wager, since I'm a peon and can't afford a large one, that the two will merge long before we see anything come along to topple Amazon. Retail in person is waning. And I don't see that trend reversing with our younger generations being ever more digitally locked-in.
Re: (Score:2)
the two will merge long before we see anything come along to topple Amazon
Swell. Then, the resultant company can buy Cosco, and the US Government too, and we'll end up with Buy n' Large.
(yes, in Wall-E, Buy n Large is not just a supermegastore, it is also the Government, quite literally.)
(Walazon? Amamart?)
Re: (Score:2)
the two will merge long before we see anything come along to topple Amazon
Swell. Then, the resultant company can buy Cosco, and the US Government too, and we'll end up with Buy n' Large.
(yes, in Wall-E, Buy n Large is not just a supermegastore, it is also the Government, quite literally.)
(Walazon? Amamart?)
That part doesn't happen until the DisneyFoxHollywhore abomination comes together and the RainForestWallMart abomination is absorbed into the fantasy industrial complex we've allowed to subsume us all. They'll be able to buy out the government debt at some point, since they'll have more money than can be printed, and own us all outright. "I owe my soul to the company store."
Re: (Score:2)
I look at this a different way. Saying that Walmart destroyed small shops, is like saying that factories destroyed the blacksmith trade. Yes, this is true, factories did destroy the blacksmith trade, in the sense that they were able to produce nails and horseshoes for a far cheaper price than blacksmiths. This was going to happen one way or another, regardless of whether one particular factor was built or not.
Walmart essentially mass-produced the process of selling stuff. They streamlined it with economies
Re:Fair payback, for destroying countless small sh (Score:4, Insightful)
They streamlined it with economies of scale. In the process, they did put small shopkeepers out of business. But if Walmart didn't do it, somebody else (Kmart, Meijer's, Target) would have
Kmart is much older than Walmart. If they were going to demolish small town shopkeepers they would have done so before Walmart existed. I think Target is newer but, like K-Mart, they put their big stores in big towns. Wal-Mart did something unusual. They put big stores in SMALL towns. With the mainstream oxygen gone, the usual reaction is to specialize. But this doesn't work in a small town as there is only enough volume in the mainstream.
Re: (Score:2)
I grew up with K-mart. Somehow, K-mart didn't lay waste to the mom n' pops. Or entire swaths of towns. They co-existed.
Maybe that has to do why now K-mart is a footnote, and so's the schmucks that bought them.
Walmart did something different -- the scale, mainly, I think.
Re: (Score:2)
K-mart didn't lay waste to mom and pops? You mean, like this? https://www.latimes.com/archiv... [latimes.com]
Re: (Score:2)
Small towns--and their over-priced shops--were dying long before Walmart came around. There's no Walmart anywhere near Ledbetter, TX, but it's shops, including a quaint general store (that, last time I was there, still had unsold antiques on its shelves) have all closed.
Those big cities had a lot more small shops, than the small towns did.
The demise of small shops was as inevitable as the invention of the airplane. If the Wright brother's didn't do it, Alberto Santos-Dumont would have. Oh wait, he did.
The B
Re: (Score:2)
Walmart essentially mass-produced the process of selling stuff.
Malls did that, post-war America up until what.. 20 years? Kinda hard to pin a date on the death of the mall.
Do YOU want to go back to the higher prices the small shops charge? If you do, just try doing all your shopping at a convenience store. I'll bet you don't. You, like everybody else, vote for lower prices, with their feet.
1. I don't shop in Walmart, and haven't for a while. Probably since around 2018.
2. If the difference is not obscene, and I like the store.. yes, I patronize the mom and pop. I'm not a "race to the bottom" guy, I don't drive around for an hour looking for a ten-cent cheaper gas station, like my fam would do.
3. I worked at a convenience store, not too horribly long ago, during a dry spell in my I
Re: (Score:2)
I'm glad you have enough spare money to spread it around to shops that charge more. Many people don't want to spend their money that way. You are definitely in the minority.
As for real wages, they haven't stagnated as much as it seems. https://www.aei.org/articles/h... [aei.org]
It's no accident that all the doom-and-gloomers pick 1973 as the "base year" for their assertions that real wages have stagnated. If you start from 1963 instead, the picture is way different.
Walmart Amazon (Score:4, Interesting)
Anymore, we will check Walmart for items before Amazon, now. The total price is usually less, particularly for things of odd shapes that don't fit in a standard shipping box - trampolines, baby gates, and so on. And in an odd way, it feels like we're supporting the local economy. (In many ways, we are.)
It's pretty weird to be, in 2024, rooting for Walmart as the underdog. For those too young to remember, Walmart was the Big Bad Empire in the 90s, wreaking devastation upon small and large town economies alike. A Walmart would come to town of 10-30k people, and that town and every small town around it had its local retailer shops simply disappear: shoes, pants, clothes, and so on.
A hardware store in my hometown that had been there, under continuous operation since the 1700s, managed to hold on until around 2003/2005 after a Walmart was built a couple miles down the road. They sold animal feed out of the back entrance, clothes (mostly work wear), hardware and tools out of the middle, and the front had oddities and hard/rock candy out of old-time style jars. The back wall had old conibear traps on display, and an old coyote pelt. The rear half of the store was a dirt packed (or dirtcrete) floor, and the front was the original roughcut oak flooring, stained and painted many times but mostly worn smooth from wear. It was an amazing place from my childhood.
It's a bridal store now. Those small town places are likely gone forever, and Walmart is no substitution. But the idea of not even having a storefront where you can walk in and get something you need at a moment's notice would be yet another loss over the 'social space' loss that losing the old time community businesses was. I don't like the idea of having just a distribution warehouse nearby, something which might be able to simply deny my deliveries based on a social credit score.
Re:Walmart Amazon (Score:4, Interesting)
To add to this... Walmart is making some very interesting strategic decisions lately to try to compete logistically with Amazon. My wife recently ordered some garden supply goods from Walmart - peat moss or something else bulky, I don't remember what it was. It was delivered same-day, but came from Home Depot. It isn't just Walmart who's concerned about competition from Amazon, I imagine - it's the entire remainder of the brick and mortar commerce.
Re: (Score:2)
I will never in a million years have the slightest shred of sympathy for Walmart. Everything about them is a blight. And I look forward to the say that someone, anyone... and if it's Amazon just as good as anyone else... burns them all to the ground.
But on this particular point, there's a bit of funny. Walmart is actually contributing to Amazon's rise themselves. Just in case anyone doesn't know: Equate is Walmart's own generic store brand. [amazon.com]
Re: (Score:2)
Re: (Score:2)
Man do I miss small hardware stores. I bet the customer service at the shop you mention was solid too.
economist: it's a double edged sword (Score:2)
Walmart coming to town was/is a double-edged sword.
It's indisputable that small businesses couldn't compete on price and got wiped out.
It seems clear (though not to the same level) that their wages were less than the jobs they displaced (though not nearly to the levels the unions claimed).
*However* . . . a while back, someone did a study about how much the *savings* to the public were.
It came out that the savings to a hypothetical worker who ended up with a wage loss of the levels claimed by the unions save
Walmart AND Amazon have degenerated (Score:3)
If products are garbage, product selection means.. (Score:4, Insightful)
.. jackshit.
Amazon is filled to the brim with random-name-lottery products, which may fail (or not), may be a con (or not), and has commingled inventory to agravate even more the issues.
If Walmart can become a source of non-random-name non-lottery products, even if the quality is lower (so that they can offer "low prices , every day"), but performance is consistent, people will flock.
If they also leverage their other strengths, like in-store pick-up, in-store returns, shipping to home from their warehouses and/or stores, they they are in a good place.
I wish them luck with that. Both are megacorps, but I'd rather have an oligopoly (with amazon and walmart along with target and others) than an outright monopoly.
Re: (Score:1)
I do find Walmart.com's quality is generally more consistent than Amazon's offering. Amazon is a better source of obscure products, but for staples, Walmart is less of a gamble.
It's kind of like iPhone vs. Android. iPhone is better quality, but less choice.
Re: (Score:2)
Downvoted by Amazon investors :-D
Feels like there is a stronger trend over the past couple years for someone to spend their mod points marking Troll on any post that expresses any strongly stated opinion. So the entire site gets really bland at 1+. I always read at Full -1 so I see it often. It happens so strongly and specifically in certain threads, I am convinced there are maybe 3-5 people who that's all they do is police threads for anything that looks slightly arguable and label it as Troll. Which is silly, because argument isn't troll
"good corporate citizen"? (Score:1)
WalMart does not fit my definition of "good corporate citizen", and is the reason I stopped shopping there since 2002. Not to mention that most of the store products are junk.
Surprising Given Their Quality (Score:2)