Walmart appears to be beating Amazon at its own game
In its challenge to keep up with Amazon, Walmart proved Tuesday that it is succeeding. The retailing giant reported that revenue in the fourth-quarter rose 4.1% to $136.3 billion as compared to the same period in the previous year. The results were in keeping with the generally upbeat holiday period that most retailers encountered last year, by far the most crucial season when it comes to ringing up sales. But it was in the realm of online sales where Walmart's success was particularly apparent. E-commerce sales were up 23% in the final quarter of 2017, and soared 44% for the full year. The results showed that while Walmart, based in Bentonville, Ark., is still the nation's top retailer with its network of stores, it is making inroads on Seattle-based Amazon's turf. Walmart has encouraged shoppers to order online, then pick up their items at stores, which it sees as a key advantage. It has steadily scooped up niche e-commerce sites like Bonobos to strenghthen its online presence and woo a more upscale customer. And earlier this month, Walmart dropped "stores" from its corporate name. Instead of being Wal-Mart Stores, it is simply now Walmart. More: Sam's Club expanded free shipping could be a boon to FedEx More: Sam's Club reduces membership categories, offers more free shipping More: Walmart takes on opioid crisis, offering free solution to safely dispose of unused meds "It signals that the way in which Walmart sees itself has shifted," said analyst Neil Saunders of retail consultancy, GlobalData at the time. It's store footprint also did well. Walmart said its sales at stores open at least a year -- an industry measure that takes growth or reduction of units into account -- were up 2.6% in the fourth quarter, and 2.1% for the full year. While mass-merchandising competitor Target said in December that it had bought delivery service Shipt and Amazon was reportedly considering whether to launch a delivery service that might compete with UPS and FedEx, Walmart has been testing more creative solutions. Last year, for instance, Walmart said it would try out a program in which employees would drop off customer orders on their way home. Besides Amazon, Walmart has been facing cost challenges. It recently announced it would boost its minimum hourly wage to $11, a move it said it can afford because of President Trump's tax cut. It has more than 1 million U.S. hourly employees, making it the nation's largest employer. And last month, Walmart announced it would cut costs by closing 63 of Sam's Club membership warehouse stores. More recently, though, it said it is going to offer expanded free shipping for premium members at those stores and will simplify the membership levels.
