Walmart is a giant in the brick and mortar store arena with an increasing presence in the online world that is largely dominated by Amazon. Looking at the increasing sales for online retailers, one would…
Walmart announced disappointing earnings yesterday and the stock plummeted.
The company executives would like the market to give them the same leeway they give Amazon (which barely makes any money). The company executives are probably frustrated that the market is not treating them like Amazon.
Walmart’s management made it clear it is hell-bent to catch up in e-commerce sales. In order to do this it will make a hefty investment in technology. Currently, online sales amount to about $12 billion, less than 3% of total sales.
At this low rate of 3% of total sales coming from eCommerce, it does have a long way to go to become a powerhouse in the eCommerce world.Further, our periodic analysis has shown that Walmart.com has a long long way to go before catching up to Amazon as is written here and here.
Walmart.com sells 4,417,344 products as of Sep 30 2015 out of which most products are NOT sold from Walmart itself. If you drill down further into just products sold “Only at Walmart” the number is far lower 4,764 products !
Amazon.com sells 467,264,472 products as of Sep 30 2015.
Walmart.com still sells only 0.94% of the products Amazon sells
The analysts and the market are definitely not wrong in treating Walmart differently from Amazon – the numbers above are clear
Walmart.com is NO Amazon.com