In the retail world, it’s a clash of the titans: one contender is Walmart which carries the world’s largest network of retail stores. While the second contender is e-commerce giant – Amazon, striving to offer literally everything at one virtual place.
Both Titans are cutting-down the prices, while making efforts for an increase in free, same-day delivery options to dominate the market.
What is the current growth orientation of these two American multinational companies plus what will be its impact on small retailers and how can they small retailers can save themselves? Let’s get some insights.
The Walmart-Amazon collision is compelling retailers to spend huge sum of money on building new warehouses to facilitate same day delivery as the online shopping is seeing a huge surge these days.
One of the biggest business transformations happening nowadays is instead of enticing the customer to the businesses, the businesses themselves are going to the customer.
Days are gone when if a business had a good product on competitive prices at a decent location, you could make money. Currently, a consumer has plethora of options to choose from.
As per the current market trend, Amazon is way ahead of Walmart in terms competition tech. And the reason is the absence of Walmart’s well-structured loyalty program like its competitor has – Amazon Prime. Walmart do have a loyalty program named ‘Walmart Rewards’, but it just delivers discounts to customers.
On the contrary, Amazon Prime has much more to offer including various shipping, shopping, streaming, reading and related benefits.
No matter what the future market trend will look like owing to the intensifying clash between two of the biggest groups, small retailers will have to take appropriate steps in order to survive in the tough market.
One of the most vulnerable sectors is museum shops and the retailers deal in cultural outfits. The best defense for them and other small retailers is to go further down into their specific niches and sell something that can’t be found elsewhere.
In short, these retailers will have to be much more aggressive in terms of carrying the things that Walmart and Amazon do not.
Another strategy that may prove to be immensely beneficial for these businesses is ‘If you can’t beat them, join them’. If these retailers can partner up with Amazon and/or Walmart, then they can compete.
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