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Walmart hopes to out Amazon, Amazon

Walmart has been putting a significant beating on many smaller retailers in the United States for years due to lower prices. Brick and mortar retailers are also feeling increasing pressure as more consumers signup for Amazon Prime, which offers free two-day shipping of products (often “tax free”) plus the added bonus of free TV show/movie streaming. Walmart may be the biggest retailer in the world, but it too is feeling the heat from Amazon.
Walmart may be the king of retail sales, but it is very far behind Amazon when it comes to online sales. Reuters reports that last year Amazon racked up $61 billion in online sales. Walmart only expects to crack about $9 billion in annual online sales as of this year.

Walmart recently announced that it would start using it stores to get internet orders to its customers faster. Walmart noted that it would begin testing lockers to hold goods ordered on the internet in stores until shoppers pick them up. Exactly when this test will kickoff is unknown; Walmart only says "soon." Amazon is also using lockers in grocery stores, convenience stores, drugstores to hold purchases for consumers when the consumer doesn't want an order to come to their home.

Walmart will also begin testing other services to make online shopping via its website easier and more appealing to consumers. One service will allow shoppers to pay for online orders in the store with cash rather than paying online with a credit card.

In addition, Walmart is planning an expansion of a currently running test to ship online orders from physical stores. The company hopes to expand this test to about 50 locations. The goal is to use stores that are closer to customers offer same-day delivery and next-day delivery of online orders at a low cost. Considering that two-thirds of the U.S. population lives within 5 miles of Walmart store, this could prove to be a very important plan for Walmart.
Amazon is also testing a same-day delivery service in some locations.

Source: Reuters

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RE: Wal-Mart can't win
By ppardee on 3/27/2013 1:44:11 PM , Rating: 1
Walmart ACTIVELY pushes jobs oversees. Companies that wouldn't normally have outsourced have been given the choice to outsource or not sell their products at Walmart (which would essentially doom the business).

Read 'The Walmart Effect' and tell me if discrimination and compensation suppression are their only failures. With respect, if you truly believe they are a good company otherwise, you are woefully uninformed.

Do a bit of research before sticking up for this company. I'm not saying other companies are blameless, but few in the history of the country have done more to damage our economy and environment than Walmart.

RE: Wal-Mart can't win
By bsd228 on 3/27/2013 2:11:27 PM , Rating: 2
The Walmart Effect also points out that Walmart effectively reduces the inflation rate experienced by its customers.

It is inaccurate to place all of this on them. Home Depot has had a similar effect on manufacturing, pushing prices down, forcing production overseas.

RE: Wal-Mart can't win
By bill4 on 3/29/2013 4:33:36 AM , Rating: 2
funny, environmental regulations enacted by liberals force more production overseas than anything, but you NEVER see internet commenters talk about that. NEVER.

It's almost like internet commenters are paid of or something.

Here's a fact, CO2 caps ban factories, or make them prohibitively expensive. Period. when they are banned, they go overseas where there are no such regulations. amazing!

RE: Wal-Mart can't win
By Mint on 3/27/2013 2:55:03 PM , Rating: 2
I never said Walmart is a good company, nor am I sticking up for them. I'm implying that they're a normal company that simply proceeded down the road of the inevitable given the realities of the world we live in.

I completely disagree with your statement about "companies that wouldn't normally have outsourced". They absolutely would have, even if would have been a couple years later in the absence of Walmart.

I'm not going to read a whole book to reply to your post, but I have read excerpts and Fishman interviews, and nothing he says contradicts what I'm saying.

The writing was on the wall for pretty much the entire economy to move in this direction, not just department stores. Outsourcing is nothing more than a prelude to cheaper and vastly more capable automation. Both drastically reduce the value and demand of blue collar labor. Even if we could somehow outlaw outsourcing, we'd have exactly the same domestic problems in a few years.

Cheap and efficient production - whether through outsourcing or automation - reducing the quantity and wage of jobs needs to meet our production demands needs is something that we as a society have to figure out how to deal with. Walmart is not the cause.

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