Walmart hits Amazon hard after making a key decision in the United States

At a time when many retailers are struggling to stay afloat, Walmart and Amazon continue to face off for market dominance. This time, it has been Walmart that has made a significant move that hasn't gone unnoticed.

Walmart has managed to exceed expectations thanks to a decision that directly affects Amazon. The company has not only increased sales in the United States but has also strengthened its delivery network to an unprecedented level. Everything indicates that its offensive in the digital market is beginning to yield concrete results.

Walmart gains ground while others retreat

The retail landscape has changed rapidly. With inflation and recession fears present, many consumers have reduced their spending. However, Walmart has not only resisted this trend but has turned it into an advantage.

During its latest earnings presentation, the company reported that transactions in its U.S. stores grew by 1.6% compared to the same quarter of the previous year. Additionally, customers spent more on each visit. This indicates that Walmart has been able to offer exactly what consumers are looking for at this moment: low prices and immediate availability.

Unlike Target, which bets on flashy inventory and more stylized experiences, Walmart remains synonymous with affordable prices, warns The Street. Its wide physical presence gives it a considerable advantage: its supercenters can be up to 50% larger than an average Target store. Additionally, with more than twice the number of locations as its rival, its logistical reach is hard to match.

The battle for delivery: Walmart accelerates against Amazon

Although many think Target is its main rival, Walmart is focused on another competition: Amazon. Both companies dominate a large part of the market thanks to their enormous inventory and competitive prices. But there was an area where Amazon had always been superior: delivery speed.

Amazon has been perfecting fast delivery for years, and its customers are used to receiving packages within hours. That's why Walmart has focused much of its recent strategy on closing this gap. And the results are already visible.

According to the company itself, its delivery system can now reach 93% of households in the United States. Doug McMillon, CEO of Walmart, was clear about this: "Delivery speed keeps driving our business," he said during the latest earnings presentation. He also added that "we will soon reach 95% of the population in the United States with delivery options in three hours or less."

This progress has been made possible by new technologies that allow for route optimization and reaching areas that were previously difficult to serve. This focus has directly driven the growth of Walmart's e-commerce, which recorded a 21% year-over-year increase in the last fiscal quarter.

If it keeps this trend, Walmart could not only match Amazon in fast deliveries but surpass it in some areas of the country. This could also boost the number of subscribers to Walmart+, its membership service, becoming a key source of revenue in the near future.