Walmart vs. Amazon: Can brick-and-mortar stores hang onto shoppers?

Not even the world's largest retailer is safe from Amazon, as more consumers turn to the web to buy everything from diapers to televisions

Best Opinion:  NPR, Wall Street Journal, Forbes...

"A mobile shopping revolution is under way, and brick-and-mortar retailers are worried," says Steve Henn at NPR. The phenomenon of "showrooming" — in which customers go to stores to eyeball and test products before buying them online at a cheaper price, often at Amazon — is taking its toll on Walmart, Target, Best Buy, and other giants in the retail industry. Can Walmart fight the trend and cling to its customers?

Walmart can't compete with Amazon's prices: These days, "half of shoppers who buy products online first checked them out in a traditional store," says Ann Zimmerman at The Wall Street Journal. While online purchases only account for about 8 percent of retail sales, that's up drastically from 2 percent in 2000. "Amazon's growth is particularly eye-popping," with Jeff Bezos' company becoming the 13th largest retailer in the U.S. in 2011, up from 19th the previous year. Remember, Amazon has super-low overhead costs, and doesn't have to collect sales tax in most states, allowing it to offer much cheaper prices. "If brick-and-mortar stores can't compete on price, it is unclear how successful they can be."
"Can retailers halt 'showrooming?'"

Walmart needs to bolster its online presence: Walmart is "the American retail superpower to rule all superpowers," but it "doesn't have a dynamic presence online," says Vatalyst at SeekingAlpha. "A hefty proportion of the public simply doesn't associate Walmart with online shopping, and therefore use other internet retailers such as Amazon and eBay." Unless Walmart can "boost its online image, internet retailers could fast become the new retail superpowers."
"Wal-Mart: How a retail superpower could fall this decade"

Exclusive products would help: Big-box retailers have to offer "something exclusive that customers can't get anywhere else," says Tom Van Riper at Forbes. "That's how Barnes & Noble stayed in business while Amazon was wiping out the rest of the book industry — coming up with its own e-reader, the Nook, to compete with" Amazon's Kindle.
"What Best Buy needs: Exclusives"

Maybe Walmart should digitally stalk its customers: "When you shop online, marketers are following your every click," says Henn at NPR. But in the real world, retailers are flying blind. Soon, though, retailers will be able to track smartphones, enabling them to "deliver discounts and coupons based on where people are standing in any particular store." Such gambits, while creepy, could give "retailers who are being showroomed a fighting chance to win back your business before you walk out."
"To keep customers, brick-and-mortar stores look to smartphones"

 

Did Walmart discriminate against 2 million women?

The Supreme Court hears arguments in a massive class-action discrimination suit against the retail giant

The Supreme Court on Tuesday will begin hearing what observers are calling "the biggest class-action discrimination case ever fought." The case, which stretches back 11 years, pits the retail giant Walmart against a group of plaintiffs who contend the company intentionally... More

What is behind Walmart's record slump?

The discount-retailing giant's sales fell for the seventh straight quarter. Here are four key factors behind Walmart's struggles

Walmart's U.S. stores are in their worst slump ever. On Tuesday, the mega-chain announced "disappointing" results for its most recent quarter. Sales at U.S. locations that have been open at least a year slipped for the seventh straight quarter — "the longest... More

Can Walmart make America eat healthier?

Backed by Michelle Obama, Walmart has pledged to make its packaged foods healthier and cut prices on fruits and vegetables — but some commentators are suspicious

Many Americans make dietary commitments in January, but most of them aren't as powerful as Walmart, which has announced a five-year plan to cut salts, fats, and sugars out of its packaged foods, and slash prices on fruits and vegetables. The mega-retailer's proposal... More

Can Walmart beat the biggest class action suit in history?

The Supreme Court will decide if 1.5 million female employees are able to sue the retail giant. But even if Walmart wins, the fallout could be devastating

The Supreme Court agreed on Monday to hear Walmart's appeal of the largest employment class-action suit on record, in which up to 1.5 million current and former female employees are seeking billions of dollars in compensation for pay discrimination. The 9th Circuit... More

Is Walmart starting a 'free shipping' war?

Will the mega-retailer steamroll the competition with free shipping, or will it crush its own big feet?

Walmart.com is offering online customers free shipping through Dec. 20, an aggressive move that could trigger a brutal fight with rival retailers for crucial holiday sales. The retail giant's website is offering the deal on 60,000 gift items, including toys and... More