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

Walmart
(Image credit: Porter Gifford/BW/Corbis)

"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."

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