Markets

Amazon Battles Walmart for Low End of Market

Amazon Battles Walmart for Low End of Market

(Seattle)

A lot of the headlines concerning ecommerce and retail go towards covering the battles going on in the middle and luxury end of the spectrum. However, one of the big fights going in is for the low end of the market. Amazon and Walmart are fighting each other to get the low end of the market, a segment of the population which accounts for a significant portion of both their sales. Walmart relies strongly on customers who are on food stamps (they produce $13 bn of revenue for the company), and Amazon just cut its price for Prime for that exact group. The low-income group, or those earning under $50,000 per household, are already Amazon's fastest growing segment for Prime, and the price cut is seen as a direct assault on Walmart.

FINSUM : Amazon is trying to steal Walmart's lunch, but the latter has been ramping up its online efforts. It also has the advantage that several factors (such as a lack of credit cards or internet access or safe delivery spots) keep these customers coming to stores instead of shopping online.

  • Amazon
  • Walmart
  • food stamps
  • prime
  • ecommerce

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks