Both Target and Walmart have made clear that they want to grow online and take on Amazon. Walmart is investing billions of dollars in accelerating its online growth. Target also pours money into their digital business.
The last quarter did not show good growth numbers for the two. Walmart who might be the number one contender to Amazon only grew its online business 10 percent. Target did better with a growth of 20 percent.
Amazon however did a lot better and its core business, electronics and general merchandise, grew 35 percent in North America. Its highest growth in many years.
Big Logistical Muscles
Recode now reports that this might further lead to a distance between the e-commerce giant and the physical stores with ambitions online. As we move into the holiday season Amazon stands much better prepared, logistically, with a vast network of distributions centrals and its many delivery options like Prime Now, Prime Same-Day and not only fast but also free deliveries in many cases.
Amazon can flex its muscles even more during the Christmas shopping period and even though Walmart and Target can leverage their stores for faster deliveries, the online sales bonanza looks to be Amazons for the taking.