Wal-Mart is reportedly telling its tech vendors to leave Amazon's cloud (2024)

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Wal-Mart is reportedly telling its tech vendors to leave Amazon's cloud? ›

Wal-Mart has asked some tech vendors to stop using cloud apps that run on Amazon Web Services. Other large retailers are following Wal-Mart's strategy in moving away from AWS, technology vendors that work with retailers tell The Wall Street Journal.

Brittain Ladd, a supply chain expert, notes that Walmart's greatest fear is Amazon's growing presence in the grocery sector. Amazon aims to control 20% of the U.S. grocery market by 2030, posing a significant threat to Walmart, which gets 60% of its revenue from groceries.

That's especially appealing to companies wanting to keep at least some of their data and applications at their own facilities, rather than in the hands of cloud giants, which are at times their competitors—one reason why Walmart has avoided using AWS and has suggested its vendors do the same.

That's because last year, Amazon grew revenue twice as fast (12%) as Walmart's 6%, reported the Wall Street Journal. Amazon ended 2023 with $575 billion in revenue, compared to Walmart's $648 billion.

However, two of Amazon's largest competitors, Walmart Inc. (No. 2) and Target Corp. (No. 5), both held more subdued sales this year. The Top 1000 ranks North America's largest online retailers by their annual web sales.

Macy's, Buy.com and Gap have been pulling out of Amazon, according to Internet Retailer. Some retailers refuse to sell their products on Amazon. In part because Amazon owns all the analytical data to merchandise sold on their website so they know what products are hot and what are not.

Conclusion. The Amazon Rainforest is facing a variety of threats today, from deforestation to climate change, mining and oil exploration, illegal logging and wildlife trade, and hunting and poaching.

Amazon and Walmart are the two dominant players in e-commerce nowadays. Amazon captures nearly 40% of all online sales in the US, while Walmart is quickly gaining ground as the 2nd largest online retailer. For brands and sellers, having a presence on at least one of these marketplaces is crucial to growth.

Wal-Mart claims in its lawsuit that Amazon.com recruited former Wal-Mart associates and targeted Wal-Mart vendors to learn more about its information systems, which include data on sales, inventory and consumer buying habits.

WCNP also leverages services from Microsoft Corp.'s Azure Cloud and the Google Cloud Platform, which are the retail giant's preferred public cloud providers. Like some in its industry, Walmart doesn't use cloud services from archrival Amazon Inc.

Does Amazon still own Whole Foods? ›

Amazon acquired Whole Foods Market in 2017 for $13.7 billion. Before the purchase, Whole Foods had seen declining sales for several quarters. Warren Buffett and Albertsons were two other potential buyers who said no to the opportunity.

Walmart is the world's largest retailer, with over $638 billion in revenue per Statista, and Amazon ranks behind as the second-largest U.S. company, with $554 billion in net sales in 2023.

Whole Foods Market, Inc., a subsidiary of Amazon, is an American multinational supermarket chain headquartered in Austin, Texas, which sells products free from hydrogenated fats and artificial colors, flavors, and preservatives.

Amazon's retail store rivals include Target, Walmart, Best Buy, and Costco. For subscription services, Amazon competes with Netflix, Apple, and Google. In the web services category, Amazon has several rivals such as Oracle, Microsoft, and IBM.

Walmart is going after Amazon in a new way — and borrowing a strategy from Target. Walmart is leaning more into its 4,700 US stores to fulfill orders for its growing e-commerce business. It's a strategy that rival Target has been laser-focused on for a decade, with notable success.

Amazon. Without a doubt, the Seattle-based eCommerce retailer is Walmart's top competitor right now. As of 2022, Walmart's total equity is $91.891 billion. For the fiscal year 2022, the company's revenue increased by 2.43%, reaching $572.745 billion.

Walmart brought in $573 billion in revenue in 2022, an increase from $559.15 billion in 2021. In the first quarter of 2023, Walmart's total revenue was up 7.6%. In 2022, Amazon had $514 billion in revenue, up from $469.8 billion in 2021. Amazon's Q1 2023 revenue was $116.4 billion, up 9% from the previous year.

Earlier this year, Amazon said it was shutting down some Amazon Fresh and Go stores that weren't living up to their promise. The company has also paused expansion on Fresh supermarkets as it aims to find the right formula that will allow it to scale its business.

One such strategy gaining prominence is the integration of Amazon FBA to fulfill orders on other platforms, including retail giant Walmart.