How Walmart and Amazon are Competing in the Retail Industry

Walmart and Amazon are two of the biggest retailers in the world, each with its own unique approach to doing business. In recent years, they have been competing head-to-head in various ways, from pricing strategies to acquisitions. This article will take a closer look at the rivalry between Walmart and Amazon and how it affects the retail industry.

Walmart’s Acquisition of Flipkart and Entry into India’s E-Commerce Market

In May 2018, Walmart announced its acquisition of Flipkart, India’s largest e-commerce company, for $16 billion. This move was seen as Walmart’s attempt to enter the Indian market, which has a rapidly growing middle class and a huge potential for e-commerce growth. The acquisition also gave Walmart access to Flipkart’s vast logistics network and customer base.

Amazon’s Expansion into Brick-and-Mortar Retail

While Walmart was making moves in the e-commerce space, Amazon was expanding into brick-and-mortar retail. In 2017, Amazon acquired Whole Foods Market, a high-end grocery store chain, for $13.7 billion. This move gave Amazon access to over 400 physical stores and allowed it to compete with Walmart and other brick-and-mortar retailers.

Walmart’s Response: Walmart+, Online Grocery Delivery, and Walmart+Rx

In response to Amazon’s acquisition of Whole Foods and its growing presence in the e-commerce space, Walmart launched its own online grocery delivery service in 2019. Walmart also launched Walmart+, a subscription service that offers free delivery and other perks for a monthly fee. In 2020, Walmart added Walmart+Rx, a prescription delivery service, to its lineup of services.

Amazon’s Response: Amazon Prime, Amazon Go, and Amazon Pharmacy

Amazon has been responding to Walmart’s moves by expanding its own range of services. Amazon Prime, a subscription service that offers free shipping, streaming of movies and music, and other perks, has been a key part of Amazon’s strategy. Amazon has also been experimenting with cashierless stores through its Amazon Go concept. In November 2020, Amazon launched Amazon Pharmacy, an online pharmacy that offers prescription delivery and other services.

Impact on the Retail Industry

The competition between Walmart and Amazon has had a significant impact on the retail industry. Both companies have been expanding their range of services and using pricing strategies to attract customers. In addition, other retailers have had to adjust their strategies to compete with Walmart and Amazon.

One of the biggest impacts of the Walmart-Amazon rivalry has been the shift towards e-commerce. Both companies have been investing heavily in their online capabilities, which has led to a boom in the e-commerce industry. In addition, the rivalry has led to lower prices for consumers, as both companies have been competing to offer the best deals.


The competition between Walmart and Amazon is likely to continue for years to come. Both companies are constantly expanding their range of services and using innovative strategies to attract customers. While the rivalry has had a significant impact on the retail industry, it has also led to new opportunities for consumers and businesses alike. Whether you prefer Walmart or Amazon, there’s no denying that these two retail giants are shaping the future of retail.

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