📈 Walmart’s Rapid E-commerce Growth
Walmart’s e-commerce sales surged 27% year-over-year in Q3 2024, compared to Amazon’s 7%. Online sales now account for 18% of Walmart's total revenue, up from 15% in 2023. Black Friday and Cyber Monday brought record marketplace sales, with Walmart’s online platform seeing its fifth consecutive quarter of 30%+ growth. Marketplace Pulse reported Walmart’s active sellers hit 150,000 in 2024, tripling since 2022. CEO Doug McMillon emphasized this shift was a bet on the future, driven by evolving consumer needs.
💻 Walmart Luminate Becomes Scintilla
Walmart rebranded its first-party data platform to Scintilla, aiming to provide deeper insights to marketplace sellers. This tool analyzes sales and inventory data, enhancing seller and advertiser performance. Walmart’s advertising arm, Walmart Connect, grew 26% in Q3, driving growth through marketplace sellers. Sellers who use Walmart ads see an average of 6.6 times more sales. Meanwhile, Walmart’s $2.3B acquisition of TV maker Vizio expands its ad reach via its own streaming and smart TV ecosystem, mirroring Amazon’s Fire TV.
🏪 Blending Physical and Digital Retail
Walmart integrates its 4,700 U.S. stores with digital efforts, giving it an edge in curbside pickup and fulfillment. Physical locations act as distribution hubs, unlike Amazon, which has limited grocery locations. Analysts like Mickey Chadha of Moody’s note this hybrid model strengthens Walmart’s ability to compete. Walmart’s retail media network taps into this synergy, offering in-store ad displays alongside online ads, creating a seamless advertiser experience.
🚀 Competing in Advertising
Walmart Connect competes with Amazon’s ad business by creating a “liquid market,” per Bryan Gildenberg of Confluencer Commerce. Other retailers, like Saks and Dick’s Sporting Goods, struggle to match this scale. Walmart's marketplace attracts sellers, boosting ad inventory and driving growth. With its physical-digital integration and ad ecosystem, Walmart positions itself as a formidable competitor, narrowing the gap with Amazon in key areas.
Is Walmart’s hybrid strategy enough to overtake Amazon?
