In a significant shift in the retail landscape, Amazon has surpassed Walmart in quarterly revenue for the first time ever. For the fourth quarter, Amazon reported revenues of $187.8 billion, outpacing Walmart’s $180.5 billion, marking a milestone in the competition between the two retail giants.
Walmart, which has held the title of the top revenue generator since 2012, previously overtook Exxon Mobil in this regard. Despite Amazon's recent quarterly success, Walmart continues to lead in annual revenue, with projections estimating $708.7 billion for the upcoming fiscal year, compared to Amazon’s anticipated $700.8 billion.
Amazon’s revenue growth is attributed to its diverse business model, which includes a robust retail operation, as well as significant contributions from its cloud computing division, Amazon Web Services (AWS), and advertising services. Notably, third-party seller services accounted for 24.5% of Amazon's total sales, while AWS contributed nearly 17%.
In response to Amazon's expanding influence, Walmart is adapting its strategies. The retailer has developed its own third-party marketplace and fulfillment services, although these remain less extensive than Amazon’s offerings. Additionally, Walmart has initiated an advertising business and launched Walmart+, a loyalty program that aims to compete with Amazon Prime.
This evolving competition underscores the shifting dynamics in retail, where both companies are innovating and adjusting their strategies to capture market share and sustain growth. As Amazon gains traction in annual revenue, the retail sector will continue to monitor the performance of both companies closely.