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JPMorgan: Amazon May Top Walmart as Biggest US Retailer by 2022

JPMorgan: Amazon May Top Walmart as Biggest US Retailer by 2022

By    |   Tuesday, 04 June 2019 09:47 AM

One JPMorgan analyst predicts that Amazon.com Inc. could very well become the king of U.S. retail in a few years.

JPMorgan analyst Christopher Horvers recently studied how various retailers are faring against Amazon.com (AMZN), Barron’s reported.

“Not surprisingly, the online behemoth continues to make gains. Amazon’s share of domestic e-commerce is around 42%, putting its share of adjusted retail sales at 6.4%,” Barron’s explained.

“Amazon may surpass Walmart (WMT) as the largest retailer in the U.S. by 2022,” Horvers wrote, according to Barron’s.

Horvers predicts that overall e-commerce will keep growing at a robust, midteens rate for the next 5 or more years, ultimately allowing online sales to account for 30% of adjusted retail sales as soon as 2026, Barron’s explained.

He also predicts that consumer packaged goods (health, beauty and personal care, and snacks) will be the next “battleground category,” driven in large part by Amazon’s push to increase the frequency with which consumers order their general merchandise online.

Meanwhile, the retail titans continuously refine their battle strategy.

To be sure, Walmart recently appointed Suresh Kumar, a former employee of Alphabet Inc.-owned Google and Amazon.com, as its new chief technology officer as it tries to fuel an internal tech transformation and boost its e-commerce business.

Kumar most recently worked as a vice president and general manager of display, video, app ads and analytics at Google. He will directly report to the retailer’s chief executive, Doug McMillon, Walmart said last week.

“Suresh has a unique understanding of the intersection of technology and retail, including supply chain, and has deep experience in advertising, cloud, and machine learning,” McMillon said in a news release. “He has a track record of working in partnership with business teams to drive results.”

Kumar’s appointment comes as Walmart is undertaking massive investments in its e-commerce business to compete more effectively with Amazon, Reuters explained.

The Bentonville, Arkansas-based retailer’s e-commerce success has been erratic over the years, but sales growth in the past few quarters has shown signs of consistency. In February, Walmart said it expects its e-commerce losses to increase this year due to ongoing investments, but that it is focused on increasing return customer visits and strengthening its online product assortment.

Kumar will have an expanded role and will be responsible for not just the United States but will oversee technology globally at Walmart, including the retailer’s warehouse club chain Sam’s Club.

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One JPMorgan analyst predicts that Amazon.com Inc. could very well become the king of U.S. retail in a few years.
amazon, walmart, jpmorgan, retail
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2019-47-04
Tuesday, 04 June 2019 09:47 AM
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