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Inside the conflict at Walmart that’s threatening its high-stakes race with Amazon

Walmart bought Jet.com to compete with Amazon, but Jet founder Marc Lore is feeling the heat as e-commerce losses surpass $1 billion.

By Jason Del Rey@DelRey Jul 3, 2019, 6:30am EDT



https://www.vox.com/recode/2019/7/3/18716431/walmart-jet-mar...

Amazon now accounts for nearly 38 percent of online retail in the US, up from 32 percent in 2016, according to an estimate from eMarketer. Walmart, on the other hand, accounts for just 4.7 percent, up from 2.6 percent three years ago.

While e-commerce still only represents 5 percent of Walmart’s entire US business, it represents where the industry is moving.

This is the reality Lore is still struggling to get Walmart’s entire executive team and board to accept, though sources say McMillon also acknowledges it: E-commerce in the US is becoming a “winner take all” industry. Or, at a minimum, a “winner take most” market.

Amazon is a very real existential threat to Walmart’s entire future if the retailer does not significantly close this gap — and fast. If Walmart falls further behind Amazon or doesn’t make up ground, we’re increasingly likely to face a future where Amazon is even more the de facto online store for everyone, with little legitimate competition or compelling alternatives on the market.
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