Amazon isn’t killing Walmart
There’s a lot of hype around Amazon surpassing Walmart in market cap in intraday trading. Amazon is the biggest online retailer in the world, and Walmart is the biggest offline retailer in the world. Amazon may very well be a more scalable or more capital efficient business. But implicit in this hype is the idea that this is a seminal moment in retail history that signals we now live in the post-physical retail world. The idea that Amazon is killing Walmart.
In my opinion, comparing Walmart and Amazon is not comparing apples to apples (more like Apples to Googles?). In fact, it is highly likely that both will continue to exist side by side and both will continue to grow, and that the real comparison here is not Walmart to Amazon, but Walmart.com to Amazon.com.
In the US, online retail accounts for $297 billion in sales (and globally $1.3 trillion).
Last year, Amazon sold $55 billion...
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