Wal-Mart Takes Aim at Amazon
. . . which is brilliant from the perspective of the consumer.
As many of you know, we here at the Lair us Amazon Prime, both for the shipping and for the ancillary benefits like video, and music.
"Wal-Mart Stores Inc. is testing a two-day shipping subscription service and building a regional delivery network, in the boldest attempt yet by a major traditional retailer to compete head-on with Amazon Prime.
As part of the project, Wal-Mart, the world’s biggest retailer, will shift more inventory to eight massive e-commerce warehouses around the U.S., the last of which will be built by year’s end. It is part of a $2 billion investment the company is making in technology and logistics to boost e-commerce sales.
The company will also put its major transportation fleet and logistics know-how up against Amazon.com Inc. as it makes a play to meet Amazon on its own turf. Wal-Mart will tap regional carriers to deliver more of its packages, according to people familiar with the project. But it will also use its 6,000 tractor-trailers, one of the largest private trucking fleets in the country, along with its 4,600 U.S. stores, to take on what has become one of its biggest rivals.
That could make Wal-Mart less reliant on FedEx Corp., which handles the bulk of Wal-Mart’s parcels. FedEx declined to comment."
It is pretty clear that the retail experience will end up with a blend of online, and physical retail experiences, not one or the other. Competitors putting pressure on each other will only make these experiences better, less costly, and improve customer satisfaction.
Bring it on!