Walmart Tests Store-Backroom Model to Challenge Amazon, Sees 27% U.S. E-Commerce Growth
Walmart is piloting a store-backroom fulfillment model to hold third-party inventory and offer faster same-day delivery, directly targeting Amazon’s delivery edge. The retailer’s U.S. e-commerce sales jumped 27% year-over-year and marketplace revenue grew nearly 20%, prompting TD Cowen to raise estimates by 4–5% and name Walmart a top pick.
1. Walmart Fulfillment Model
Walmart is piloting a store-backroom fulfillment model that reserves shelf space in local stores to hold third-party marketplace inventory, enabling faster same-day delivery.
2. Robust Growth Metrics
The retailer reported U.S. e-commerce sales growth of 27% year-over-year and nearly 20% annual growth in its marketplace revenue, reflecting accelerating consumer adoption.
3. Analyst Upgrades
TD Cowen raised its revenue and earnings estimates for Walmart by 4–5% and designated the company as a top retail pick, citing its enhanced logistics network.
4. Implications for Amazon
Walmart’s expanded delivery capabilities threaten Amazon’s long-held advantage in quick fulfillment, potentially forcing Amazon to accelerate its own logistics investments and pricing strategies.