Walmart is facing fresh humiliation as shoppers continue to turn elsewhere for their essentials. Amazon has officially knocked Walmart from the top spot on the Fortune 500 list of top companies, ending the retail giant's 13-year streak as America's biggest retailer in terms of profit.
The corporate upset marks the first time since 2013 that Walmart has not claimed the title, with Amazon earning about $717 billion in its latest fiscal year, sneaking past Walmart's $713 billion. Fortune added that in 2010, Amazon's revenue was $34.2 billion, while Walmart's was more than 12 times that amount at a whopping $422 billion.
This rapid success could be because of Amazon's growth in e-commerce, advertising and its massive third-party seller services. The online retailer has also been focusing on its ultra-fast delivery service, with packages arriving just hours after being ordered for an additional fee.
Retail expert Neil Saunders previously told the Daily Mail that Amazon picked up momentum by introducing perishable products into its delivery system. 'Its general expansion of faster delivery into more rural areas puts the two retail giants at loggerheads,' Saunders said.
Last year, Amazon also launched a private-label brand of food and household items available for delivery at, generally, a lower price point than brand name products.
Walmart has over 5,000 'supercenters' in the United States, making it one of the nation's largest retail chains. Walmart CEO John Furner is focusing on value at the supercenters while still implementing tech-forward changes.
When it comes to in-store shopping, Walmart is still miles ahead of its competitors. The retail giant has over 5,000 'supercenters' in the United States alone, making it a go-to grocery spot for Americans. With new CEO John Furner in charge, Walmart has plans to upgrade the in-store experience for its growing customer base. New digital shelf labels that update automatically each night will replace the old pricing system within the next year - and have sparked fears of AI-powered surge pricing.
In April, the retail giant announced it would revamp its own private label products under the 'Great Value' umbrella. First launched in the 1990s, Great Value is one of the most popular brands offered by Walmart - it can be found in nine out of 10 US homes and saves an average family 35 percent per year.
And even if the company lost its Fortune 500 spot to Amazon, it's still the second biggest player in the e-commerce space, with digital sales hovering around $120 billion per year.
'Walmart has had amazing performance, especially in digital over the last few years, but Amazon just has a better strategic position with digital shoppers,' Marketwatch founder Derek Reisfield told the Daily Mail. 'Also, given the Whole Foods customer base, Amazon has a better position with wealthier shoppers.'
'This is a huge advantage as higher income people spend more - thus more volume and value going to the same delivery address,' he added.
Reisfield said that there are other factors adding to the success of both companies, the first being their use of customer data. 'The company with the largest data set has a huge advantage,' he added. Walmart and Amazon are both large players in the 'fastest growing part' of retail business: advertising.
'Amazon is just killing it with advertising revenue and profitability,' Reisfield said. 'Amazon sold over $68 billion in ads last year, growing at 22 percent. This includes Prime Video advertising sales.'
Meanwhile, Target recently announced a new strategy to revamp 130 stores across 10 cities in an effort to lure in customers looking for a more 'luxurious' shopping experience. 'These investments are all about making Target an even easier, more inspiring and friendly place to shop,' Target executive Laurie Mahowald said in a statement.
