Amazon Surpasses Walmart as World’s Top Sales Leader
In a significant shift in retail dynamics, Amazon has overtaken Walmart to become the world’s leading company by sales. For the first time, Walmart reported an annual sales figure that fell short of Amazon’s. This milestone was recognized on Thursday, with Walmart’s revenue for the year ending in January totaling $713.2 billion, while Amazon achieved $716.9 billion in revenue for the year ending in December.
Key Financial Figures
For much of the past decade, Walmart held the title of the largest retailer globally. It currently operates nearly 11,000 stores and employs over 2 million people. In contrast, Amazon employs around 1.6 million workers and has focused primarily on its online retail business. The recent surge in Amazon’s sales can be attributed to its thriving cloud computing division, Amazon Web Services (AWS).
Growth Factors for Amazon
- AWS Growth: Amazon Web Services reported its fastest growth in years as businesses increasingly adopt cloud services.
- Artificial Intelligence: Companies are leveraging AWS to enhance their capabilities in artificial intelligence.
Despite Amazon’s success, Walmart has also made strides in the retail sector. Earlier this month, Walmart announced a 24% increase in its online sales. Additionally, it has expanded its delivery options, including rapid deliveries made within hours.
Comparative Market Strategies
Both Amazon and Walmart are vying for consumer spending in the U.S. market, which remains the largest for both companies. Amazon competes aggressively on price, while Walmart has identified high-income shoppers as its fastest-growing segment. Walmart is also venturing into artificial intelligence with its own shopping assistant and investments in retail technology, although it does not compete in cloud services.
Market Valuation
In terms of market value, Walmart’s stock recently surpassed $1 trillion, indicating solid performance. However, Amazon’s market value exceeded $2 trillion in 2024, further solidifying its position as a powerhouse in the retail and technology sectors.
