Walmart Outperforms Amazon As The Competition Heats Up – Forbes
Yes, you read that right. Walmart grew online sales at a faster rate than Amazon.
The news is surprising because recent headlines declared Walmart all but dead, thanks to Warren Buffet’s decision to sell 90% of his stake in favor of airlines.
But it shouldn’t be. Walmart has been making big changes in the digital business and quite frankly, has a lot of runway to post good results as those begin to bear fruit. Walmart is the second largest online seller in the U.S. after Amazon, but the two aren’t even close. Walmart’s online sales for 2015 was $13.7 billion compared to Amazon’s $107 billion.
Last year the company bought Jet.com for roughly $3 billion and has quickly integrated the business and begun leveraging synergies. More importantly, Jet.com founder Marc Lore, now CEO of Walmart’s U.S. e-commerce business wasted no time in tackling issues included shipping charges, marketplace growth and began refining its membership program.
According to Stephan Schambach, serial entrepreneur and CEO of NewStore, “Amazon became the ‘Walmart of the Internet’ before Walmart could. But since the acquisition of Jet.com, it appears Walmart is on the path to reclaiming a title that should’ve been theirs.”
“[A] combination of a massive brick and mortar footprint with an emerging e-commerce player like Jet.com put both companies in a better position for battle,” Schambach said in an email. In-store pickup of online orders at Walmart stores grew 27% during the recent holiday season compared to last year.