Wal-Mart Prepping for a Major Challenge to Amazon

As everyone knows, Wal-Mart’s sales have been slipping as the US retail slump has hit, and it is also finding its position increasingly precarious in the face of rising competition from Amazon. Not content to roll over and die, the company recently went on a spending spree and acquired and its founder Marc Lore, and they appear to be planning a major challenge to the empire that Jeff Bezos built:

Wal-Mart’s acquisition of and brands that appeal to younger shoppers gave it an e-commerce boost as it works to close the gap between itself and the online leader. The world’s largest retailer is betting on essentials like fresh produce, and has adjusted its shipping strategy to better compete with Amazon’s Prime program. But Amazon keeps innovating too, implementing new technology and trying to make shopping more convenient.

Marc Lore, a co-founder of who is now head of Wal-Mart’s U.S. online operations, says he’s confident about the company’s momentum and there’s plenty of room for it to thrive.

“I can tell you we are happy with the moves we are making, and we are happy with the results,” Lore said at the Jet headquarters in Hoboken, New Jersey. “It’s about moving fast. It’s about innovating. And it’s a very big market.” He noted that e-commerce sales industrywide are still growing 15 percent per year.

As Wal-Mart prepares to show off some of its innovations this week before its shareholder meeting, there are signs that things are starting to click.

Sales at rose 63 percent in the first quarter, up from 29 percent growth in the previous quarter and marking its fourth straight quarter of increases. Despite its acquisitions, Wal-Mart said a majority of the increase was through and was fueled by changes in its shipping strategy and a discount for shoppers who pick up their online orders. now offers 50 million products including those from third-party sellers, up from 10 million a year ago. In comparison, Amazon has hundreds of millions of products.

Marc Lore, according to other articles I’ve read, is very eager to take Bezos on, and the initial results seem like they’re promising. While I’m not the biggest fan of Wal-Mart, I am definitely rooting for them to succeed in their efforts to fight Amazon. Amazon has gotten way too dominant, and could do with some serious competition. Wal-Mart might be just the ones to give it to them.


Written by Doomberg

I am Doomberg, one of the original founding members of Sparta Report, and have been here since the beginning. I am an insatiable news junkie and enjoy reading and writing about the US territories, the Caribbean, video games, smartphones, and of course conservative politics in general.

I also really like pictures of gas stations and claim full responsibility for the silly gas station motif. I'm presently trapped behind enemy lines in a blue state with no hope of escape! The ride never ends.


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