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Inside Amazon’s secret move to challenge Walmart’s strength
Yahoo Finance· 2026-01-18 17:33
Core Insights - Walmart has a significant advantage over Amazon due to its extensive store network, with approximately 90% of the U.S. population living within 10 miles of a Walmart or Sam's Club, making it easier for customers to access physical stores [2][4] - Amazon is planning to open its first Supercenter, a 229,000-square-foot store in Orland Park, Illinois, which is larger than the typical Walmart Supercenter of about 170,000 square feet [4][5] - Amazon's approach to retail has been more discreet compared to its usual publicity, with local media discovering its mega-store plans rather than an official announcement [3] Walmart's Competitive Edge - The physical shopping experience at Walmart encourages unplanned purchases, as customers may encounter various unrelated products while browsing, unlike Amazon's online recommendation engine [1][2] - The convenience of Walmart's store locations presents a challenge for Amazon to replicate, highlighting the importance of physical presence in retail [2] Amazon's Retail Strategy - Amazon aims to enhance customer experience by creating a grocery store designed for safety and pleasant shopping, indicating a shift towards more physical retail spaces [4] - The company has previously experimented with different retail formats, such as 4-Star stores and curated bookstores, showing its willingness to innovate in the physical retail space [6]