Food Fight: Amazon vs Walmart


Bigger Pie Forum | Food Fight: Amazon vs Walmart | Ashby Foote
Coming soon to a marketplace near you – two of America’s biggest and most famous companies face off in a food fight to end all food fights.  At stake is nothing less than the $800 billion Americans spend every year on groceries.  On one side is an old disruptor that is now the King Kong of groceries, Walmart.  On the other side is a new disruptor and the Godzilla of e-commerce, Amazon.  Both companies are Jedi-Masters of logistics and bring unique advantages to what will be an epic confrontation.
Walmart’s tale of disruption, from its small redoubt in Bentonville, Arkansas, is the stuff of business legend.  Starting with small town stores, Walmart knocked off Sears and K-Mart, took on groceries and is now the largest (by revenue) company in America with over $510 billion a year in sales.  It didn’t happen by accident.  From its early days in the 1970s, Walmart was a pioneer in deploying the latest and greatest technology to fine tune its supply chain from vendors to distribution centers to store loading docks all in the pursuit of “Every Day Low Pricing”.  Walmart has a stock market value of $279 billion and enjoys a 26% (#1) market share in U.S. groceries.  Kroger is 2nd at 10% with Albertson’s 3rdat 5.3%.
Enter Amazon, widely recognized as one of the world’s premier disruptors and the most successful of all the dot-com companies.  Amazon jumped into groceries in 2017 with its $14 billion purchase of Whole Foods and its 470 stores.  Its U.S. grocery market share ranks 8that just 1.6%, but Amazon is the undisputed leader in e-commerce and web services with annual revenue of $208 billion. In addition, Amazon’s status as a Wall Street darling has earned it a stock market

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