Amazon Just Made 2 Big Moves Simultaneously and Walmart Better Pay Attention |
Amazon Just Made 2 Big Moves Simultaneously and Walmart Better Pay Attention
The old framing doesn’t hold anymore.
EXPERT OPINION BY BILL MURPHY JR., FOUNDER OF UNDERSTANDABLY AND CONTRIBUTING EDITOR, INC. @BILLMURPHYJR
Illustration: Inc; Photo: Getty Images
For a long time, the Amazon–Walmart story followed a clean, almost comforting logic. Amazon dominated online. Walmart dominated physical retail. Each had strengths the other couldn’t easily replicate.
That framing doesn’t hold anymore.
Over the past week, two separate reports — one built on internal documents, the other on on-the-ground reporting and data — point to the same shift. Amazon is no longer content to compete with Walmart from its traditional position. It’s moving directly into the areas Walmart has controlled for decades — proximity, groceries, and rural customers.
Let’s start with geography. Walmart’s advantage has always been simple and hard to dislodge. It’s already there.
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Its stores sit within a short drive of most Americans, including a large share of rural households. That proximity shapes behavior and drives loyalty. If you need groceries, household basics, or something you want immediately, you go to Walmart. Over time, that habit extends to everything else.
Amazon’s model historically worked around that reality. It didn’t need to be nearby. Instead, it just needed to be fast enough and broad enough in selection to compensate.
That worked especially well in cities and suburbs, but rural areas were different. Delivery was slower, costs were higher, and the fallback — driving to Walmart — was always available.