How can Walmart beat Amazon?
Walmart strategy for physical stores has been to keep their prices 7% roughly below their competitors' prices. Their customers know that, their competitors know that.
To beat Amazon, Walmart needs a similar strategy.
The reason no bricks and mortar retailer has been able to match or beat Amazon's prices is because they keep online and store prices same. But higher costs incurred for selling in a store (real estate, employees etc) makes it uneconomical to match Amazon.
So Walmart needs to do 2 things:
1. Keep Brick and Mortar store prices 7% below their brick and mortar competitors like Kroger.
2. Keep their online store prices 7% on average below their online competitors like Amazon.
So this would mean, Walmart physical store prices would be materially higher than Walmart online store prices. I think that is the reality and mental barrier that Walmart needs to accept and implement for becoming the King of Retail in both Online and Offline.
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