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What Amazon’s proposed big-box store could mean for Walmart

Several former Walmart leaders say they expect the big-box retailer to keep a close eye on Amazon’s proposed big-box store near Chicago.

“Amazon has tried a number of different physical store layouts and formats, and the only one that has really worked is the one they bought, which is Whole Foods,” said Scott Benedict of Benedict Enterprises, a retail consultant who held various leadership roles at Walmart between 1997 and 2017. “The one thing … they haven’t tried is this format, a Supercenter format that is really at the heart of Walmart’s success, which is the combination of food and grocery in a wide-assortment scenario.”

While one store opening is unlikely to faze Walmart, which has 4,600 stores throughout the U.S., it could be the start of something that scales with other locations and eventually becomes a competitive threat. Moreover, it’s the entry of Walmart’s longtime e-commerce rival into a space where it currently dominates and has a competitive advantage: Because of its store network, Walmart says it can deliver to the top 95% of households in under three hours.

What Amazon’s proposed big-box store means for Walmart

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