Skip to main content

Market Overview

Amazon Moving Retail Wars To An Unexpected Battleground: Physical Stores

Amazon Moving Retail Wars To An Unexpected Battleground: Physical Stores

Just a few years ago, it might have seemed unbelievable that the ShopTalk retail conference would be dominated by talks about the vital role that physical retail stores, rather than exclusively online platforms, will play in the future of retail. 

It's true:, Inc. (NASDAQ: AMZN) continues to invest heavily in its physical presence, while Walmart Inc (NYSE: WMT) is pressing its brick-and-mortar advantage, KeyBanc Capital Markets analyst Edward Yruma said in a Wednesday note. 

Amazon has had early success with its physical Amazon Go store testing, the analyst said. The company did not comment on whether it plans to open more Amazon Go stores or expand its Go technology to Whole Foods locations, he said. 

Walmart Plans Expansion Of Online Pick-Up, Grocery Delivery 

At the same time, Walmart has been focusing on how it can optimize online sales by taking advantage of its physical store locations, Yruma said: this year, Walmart plans to expand the number of stores that offer online sales pick-ups from 1,200 to 2,200.

Walmart has also seen early success in its pick-up towers and plans to roll out 650 towers this year, according to KeyBanc. Walmart said its Net Promoter Score — a metric that measures how likely customers are to recommend a store to other customers — is up 5 percent in locations where it has a tower, according to the equity research firm. 

Walmart plans to expand its grocery delivery service to include more than 100 national metro locations this year, Yruma said. 

 'A Seamless Experience'

The brick-and-mortar store is making a comeback, at least for now, the analyst said. 

“Stores are still relevant and appear to be gaining in importance, at the margin, as retailers pivot away from separate channels to a fully integrated retailing model in an effort to provide the customer with a seamless experience." 

Related Links:

Morgan Stanley: Walmart's Slowing E-Commerce Growth Is Cause For Concern

Analysts Defend Walmart's Quarter

Latest Ratings for AMZN

Apr 2021Credit SuisseMaintainsOutperform
Apr 2021BMO CapitalMaintainsOutperform
Apr 2021Wells FargoMaintainsOverweight

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings


Related Articles (AMZN + WMT)

View Comments and Join the Discussion!

Posted-In: e-commerce Edward Yruma KeyBanc retail ShoptalkAnalyst Color Analyst Ratings Best of Benzinga

Latest Ratings

CWBHFCantor FitzgeraldMaintains3.8
PRTSRoth CapitalMaintains30.0
MUXRoth CapitalMaintains2.0
BABAJP MorganInitiates Coverage On
CLARRoth CapitalMaintains24.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at