Amazon To Surpass Walmart as the Largest US Retailer in 2022
In a recent report, JPMorgan Chase & Co. predicted that Amazon is likely to become the largest retailer in the US by 2022. This would place it ahead of its current main competitor Walmart.
According to JPMorgan’s estimates, Amazon’s gross merchandise volume has been growing by 41% for several years now and has reached $316 billion in 2020, while Walmart’s GMV has risen by 10% year after year and was at $439 in 2020.
One of the main reasons Amazon has been so successful is due to the COVID-19 outbreak. The pandemic has caused many to turn to online shopping instead of going to physical stores where they might get infected.
Even as the virus crisis is dying down as more and more people are getting vaccinated, it’s clear from Amazon’s latest quarterly results that the eCommerce giant is still hugely popular among consumers. For instance, compared to the first quarter of 2020, the company’s net sales increased by 44% in the first quarter of 2021.
Although, as is apparent from JPMorgan’s research, Walmart isn’t struggling, it was, to a certain extent, negatively affected by the pandemic. Namely, the retail corporation had to set aside additional funds for providing its employees in department stores with certain means of compensation for working in a high-risk environment.
As of now, no other US-based brand has managed to build an eCommerce presence as widespread and versatile as Amazon’s. It dominates the US information technology industry along with Google, Apple, Microsoft, and Facebook. Amazon is also the number one internet company in the world in terms of revenue and market capitalization.
Amazon was founded in 1994 by Jeff Bezos as an online marketplace for books. In 1998, Bezos began selling music and videos as well. By the end of that year, he had expanded the company’s assortment of goods to include numerous other products. Today, Bezos’s net worth equals more than $190 billion, making him the richest man on the planet.