It’s a measure of how much the American retail landscape has changed in the past decade that Amazon is poised to overtake Walmart as the largest U.S. retailed by 2022.
That prediction comes from a recently published report from market research firm Packaged Facts.
As of today, Packaged Facts estimates that Amazon makes up ~43% of all U.S. e-commerce sales, which is dramatically higher than its ~28% share just four years ago. Continuing its growth trajectory, by 2022 Amazon is expected to make up nearly half of all U.S. e-commerce sales.
That degree of concentration will make it bigger than Walmart — even considering the latter’s huge brick-and-mortar presence which Amazon lacks.
Of course, Walmart continues to possess additional advantages that Amazon cannot match, despite the latter’s acquisition of supermarket chain Whole Foods in 2017. Not only does Walmart have a huge physical footprint in retail, it also offers a wide range of in-store services which entice foot traffic — things like an onsite pharmacy, financial services, and photo processing.
Also working in Walmart’s favor is its dominance in so-called “click-and-collect” shopping orders. According to recent surveys, ~43% of respondents identified Walmart as the pickup location for their last click-and-collect order — three times the share percentage of runner-up Target.
Still, the emergence of Amazon atop the retail industry heap says volumes about the seismic shifts brought about by online retail. The channel hasn’t been around all that long in the grand scheme of things, but its impact has been nothing short of seismic.
How have your shopping habits changed during this time? Do they reflect what has happened in the larger market? Please share your thoughts with other readers here.
2 thoughts on “Amazon is poised to become America’s single biggest retailer, outpacing Walmart.”
Amazon has two advantages over Walmart: Firstly, it’s socioeconomically neutral. (You can order industrial soap or Ralph Lauren suits with equal ease. Walmart is stuck in a mostly cut-rate market.)
More importantly, Amazon delivers product to us through tapping a finger — without lifting a finger. Amazon doesn’t waste our time. And we are a sedentary culture, as the electric carts at Walmart attest. Convenience will triumph.
But you can’t yet smell your item on a computer — or touch it; that’s part of shopping, too. Buying in-person is a social experience, moreover. So Walmart will continue to thrive at some level.
Not only is Amazon outpacing American retailers, it catapulted over DHL and 48 other logistics firms to establish itself as the world’s largest third party logistics (3PL) company in 2017.