/Amazon is slated to overtake Walmart as the largest retailer in the US

Amazon is slated to overtake Walmart as the largest retailer in the US



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Walmart’s not the only retail giant in town anymore. In fact, one
market research study found that Amazon is on track to overtake
its Arkansas-based competitor in terms of gross market value
within the next few years. 

A study from Edge by Ascential calculated that Amazon’s gross
market value will reach $631.6 billion by 2025, a compound annual
growth rate (CAGR) of 14% between 2020 and 2025. That means that
the digitally native powerhouse is set to eclipse Walmart as the
largest retailer in the United States. Walmart’s gross market
value is slated to rise to $523.3 billion by 2025, a CAGR of
3.9%. 

As a brick-and-mortar native, Walmart has long trailed behind
Amazon in terms of its e-commerce capabilities. In fact, Walmart
started an overhaul of its online capabilities — known internally
as Project Glass
to improve its digital fulfillment performance. Still, the
company has leveraged its huge physical footprint to become a
major contender in terms of online sales. But the Edge study
found that this likely won’t be enough to catch Amazon. 

All in all, the estimates from Retail Insight indicate the
staying power of e-commerce. The report found that 29% of total
chain retail sales will come from e-commerce by 2025 and that
online sales in the US alone will increase over $1 trillion by
then.

Edge by Ascential estimated that Kroger will reach $166.6 billion
in sales by 2025, retaining the third-place spot among
retailers. 

“As Amazon grows to become the largest retailer in the US, brands
must understand they cannot win through mass personalization when
faced with the huge spending power of large marketplaces like
this,” Edge by Ascential CEO Deren Baker said in a statement.
“They should therefore ensure they have the correct strategies in
place to use marketplaces, like Amazon, to reach the right
consumers and meet their needs.” 

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