Amazon and Walmart are one of the biggest e-commerce companies in the world. With Walmart’s chains of stores worldwide, they seem like an excellent choice for Amazon to buy. That’s why people often wonder if Amazon has bought Walmart. So, did Amazon buy Walmart? Or could there be a partnership?
Amazon does not own Walmart and has not made an acquisition attempt. Amazon and Walmart are both skilled at acquiring smaller franchises or brands to merge into their own. Due to the size of Walmart, it is unlikely that Amazon will acquire the business soon.
Amazon has continued to grow and evolve over the years, making it the largest e-commerce company in the world. Could Amazon be looking to acquire its biggest competitor, Walmart? Keep reading to find out more.
There is currently no proof that Amazon has ever attempted to acquire Walmart, and it is improbable that Amazon will do so in the future. This is because Walmart is already such a massive corporation, and it would not make financial sense for Amazon to attempt to acquire it.
Amazon and Walmart are the biggest competitors, and even if the two companies have not discussed a merger, is there a chance it could happen soon?
Amazon would make more money from a merger with Walmart than from a direct purchase. However, Amazon is currently more concerned with acquiring smaller businesses, which can help it extend its supply chain and improve and speed up its services.
Sam Walton founded Walmart in 1962. Today, Walmart is owned by one of America’s wealthiest families: The Walton Family. The Walton Family owns and controls more than half of the company shares.
Walmart owns a chain of shopping complexes and supercenters bought in America and outside the country. The Walton family shares in Walmart are worth about $200 billion.
Walmart generated more revenue in 2020 ($523.964B) than Amazon ($386.064B). Considering Walmart’s worth, it may not be willing to sell or offer some of its shares to Amazon.
Amazon is not in any way associated or connected with Walmart. Walmart is the undisputed leader in grocery sales, while Amazon remains the undisputed e-commerce giant. So, while Walmart derives most of its sales from its physical retail locations, Amazon is an eCommerce platform.
Amazon has tried to make efforts in the grocery industry, and in 2017, Amazon acquired the supermarket chain “Whole Foods” in addition to the 2007 Amazon Fresh. Also, Amazon has included many physical stores, including Amazon 4-Star stores, Amazon Books, Amazon Style, and Amazon Go.
Also, Walmart now runs an online store where shoppers can order their preferred goods and deliver them to their door. While it is clear that both companies have adopted strategies from each other, it is more of a competition than a connection or an alliance.
Is Walmart Trying to Be Amazon?
Amazon has seen so much success and is now worth trillions of dollars. With the rise in the need for e-commerce and home deliveries, Walmart has been adopting some of Amazon’s business models and incorporating them into its business.
For example, during the pandemic, Walmart spent millions of dollars to enhance its storefront pickup and delivery services. It now wants to offer the same services to independent grocery businesses. While Walmart hasn’t explicitly acknowledged this plan, it is part of its strategy to give smaller chains a way to compete with Amazon.
For online shoppers, these Walmart stores serve as warehouses as well. While other businesses like Target are attempting to do this and compete with Amazon, no other conventional retailer has Walmart’s size or financial capacity.
Also, Walmart launched Walmart+, a new membership service to compete with Amazon Prime. This is not only a mirror of Amazon Prime, as Walmart seems to be promising greater benefits.
Amazon Prime, which costs $119 per year, will now have Walmart to compete with. Walmart+ launched for $98 a year. Benefits for Walmart customers include same-day delivery of groceries and other necessities. They also offer reduced fuel prices at Walmart gas stations and early access to product sales.
Walmart is bigger than Amazon in terms of revenue, the number of stores, and the number of employees. From a pure revenue standpoint, Walmart continues to be bigger. Compared to Amazon’s $386 billion in revenue, Walmart recorded $523 billion in sales in 2020.
In 2021, Walmart recorded a revenue of $559 billion, while Amazon reported annual revenue of $468 billion, narrowing the gap.
While online shopping continues to grow, in-person transactions still account for 85% of all transactions in the US. Walmart takes the lead with more than 10,000 retail locations worldwide (compared to Amazon’s 589 stores). Walmart still reigns supreme in food shopping even though Amazon is a global e-commerce giant.
Both businesses are also growing in the healthcare industry, where success might significantly increase client loyalty and revenue.
Amazon and Walmart compete fiercely for the title of the largest firm in terms of annual sales and net profits. However, this title is currently held by Amazon, and it seems they will be holding it for a long time.
Amazon currently surpasses Walmart as the biggest retailer in the US. Amazon has also increased its gross merchandise volume at a substantially quicker rate than Walmart. Amazon has 40% of the online market share in the US compared to Walmart’s 7%.
Walmart still generates enormous revenue and annual net profits, so it isn’t in danger of going out of business even though Amazon might overtake it.
Amazon does not currently own Walmart and has never tried to buy Walmart. Both businesses put a lot of effort into buying smaller franchises to grow their brands. Amazon and Walmart remain the biggest competitors in the retail and e-commerce industries.
Welcome to CompanyScouts! I am Jake, the founder of CompanyScouts. I hold an Msc in Economics and Business Administration. With a deep interest in the consumer segment, I strive to help people get to know their favorite companies even better.