Black Friday: Walmart Vs Amazon

Tis the season when the behemoths wage battle.

With the passing of Thanksgiving in the United States, the holiday shopping season kicks off with Walmart and Amazon going head to head. Billions of dollars in revenues are at stake. These two companies vie for supremacy while others struggle to simply hang on.

As the threat of recession looming, few know how things will unfold. Reports are the consumer is tapped in terms of discretionary spending. However, that tends not to stop people are they pull out the credit cards and swipe themselves further in debt.

For this reason, we can expect the shopping season to be fairly strong. Consumers might step their spending down but they will not stop. This is the case, at least in the United States. It appears as if people are incapable of not buying stuff.

This is something both Amazon and Walmart are well aware of. They realize that discounting can help to offset whatever struggles individual families might be having.

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Walmart Taking Charge?

With the season expected to be somewhat subdued, it is imperative that companies do what they can to attract the eyeballs. This is something that Amazon traditionally excelled at. However, Walmart has been gaining steadily in recent years.

According to a report on CNBC, it seems that Walmart might be the one driving the show. The retailer is offering a higher percentage of discounts in an effort to lure in shoppers. This is showing up in some of the early numbers.

The big box retailer is dominating online searches for Black Friday discounts as of Friday morning, according to advertising technology company Captify, which tracks more than 1 billion searches a day from websites globally.

There is no guarantee this results in sales yet it is an indication of how the company is faring. Expect Walmart to do well.

Black Friday is expected to pull in $9 billion in online sales, a 1% jump from the previous year, according to Adobe.

Here we see another sign that things might not be as sluggish as some predict. If the first official day of the shopping season is successful, it could show the resiliency of the consumer. Much of Wall Street will be watching.

Walmart struck gold last quarter with a surprise, especially in light of other retailers. The numbers were strong leading some analysts to believe that the retail industry would do well.

This could be a misread of the market. Walmart is the largest grocer in the US, adding to its totals. Also, when people step down, they tend to leave Target and head to Walmart. The numbers of both companies show this trend.

Amazon Never Far Away

We cannot discuss retail without including Amazon. Regardless of what is happening, the top online retailer is never far away.

The company has traditional had strong holiday seasons as it loaded up on discounts. Historically, the Amazon was willing to take losses for market share. There are certain items it holds strong on yet can pull in a lot of traffic with enticing offers. It appears Walmart is following this approach.

Another factor in this tends to be the demographics. Amazon has the tech friendly buyers. Walmarts customer base tends to be less educated, older, and less inclined to engage in online commerce. One advantage the company does have is an overwhelming percentage of the US population is within 30 minutes of a store.

That said, the latter has done a good job of increasing its online presence, translating into more sales. This is a trend it will likely look to leverage over the next month.

The final point of interest is going to be the fallout on the rest of the industry. If things are poor, those companies that were on edge to begin with could find themselves in a deeper hole. Store closings have been consistent over the last few years. Do not be surprised if many retailers are starting to look at continuing this trend after they get the holiday results.


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As prices jump back and forth between retailers, savvy shoppers can pinpoint online deals to save big money during the holiday gift season... but it's even better when someone else does the work for you.Black Friday sales and Walmart go together like peanut butter and jelly. Also,despite facing intense holiday competition from Amazon, Best Buy, Target and other online retailers, Walmart still has some of the best Black Friday deals that you'll find in real life or online.

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I have seen a few videos about how Black Friday wasn't that great because there was still a lot of stock left over at night. I don't know how the online sales were doing though in comparison.

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The last few days have been hectic as the family business supplies to Walmart here in SA and our equivalent of Amazon (coming February). The sales of online are way up on last year and Walmart have to restructure here as they are being wiped out. When Amazon arrives they are in big trouble.

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Big Box Stores Battle for Diminishing Consumer Spending

Say it ain't so @taskmaster4450

Even in a deep recession and possiblyu depression, Americans rise to the challenge, to reach deep into their credit cards, and charge more consumer goods

Amazing

When will the spending end?

The economy is terrible, but that won't stop people from spending themselves into a debt hole from which they may never emerge

hahaha

The shopping addiction is alive and well in America

What about the rest of the world?

@shortsegments

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