The latest salvos in the WalMart-Amazon war
The war between the internet giant and the brick and mortar goliath continue with each making gains in each others’ territory.
WalMart is trying yet another solution to the last mile problem. Again, the ‘last mile’ of delivery is considered the most expensive part of the delivery and WalMart has been experimenting with different possible solutions. Recently, WalMart has bought a delivery startup called Parcel which touts itself as a last mile delivery service. Parcel also has other clients who they say will continue to provide service to, even after the WalMart purchase.
Meanwhile, Bloomberg is reporting that Amazon has taken a sizeable chunk of customers from other retail chains with their purchase of Whole Foods. Hurt most by this influx of customers to Whole Foods is Trader Joe’s. Whole Foods are also said to have taken a number of customers from WalMart, however, those customers they took from WalMart could already afford Whole Food prices. Lower income customers are still sticking with WalMart as the best value for their dollar.
Lastly, the Denver Post is reporting that Whole Foods’ prices that Amazon slashed in the first week after the purchase have crept back up to the ‘Whole Paycheck’ price levels.
Usually competition like this opens up more choices and benefits for consumers, but since both WalMart and Amazon tend to gobble up or eliminate any real competition they have we could possibly end up with less choice where the retailers could set prices anywhere they want.
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