What: Walmart’s strategic investments in technology, automation, and ecommerce have revitalised its business, enabling it to counter the threat posed by Amazon and maintain its position as the world’s largest retailer by revenue.

Why it is important: Walmart's resurgence demonstrates how brick-and-mortar giants can adapt to the digital age, evolving into hybrid tech-retail companies to remain competitive and attract both customers and suppliers in a challenging economic landscape.

Once viewed as outdated amid the rise of ecommerce, Walmart has successfully reinvented itself as a tech-driven retail leader. With projected record revenue of USD 681billion for 2025, Walmart has achieved rapid ecommerce growth, comprising 18% of its revenue, while building a marketplace of over 700 million items. It has invested heavily in automation across stores and warehouses, expanded online grocery pickup and delivery systems, and launched initiatives like Walmart Connect, which monetises advertising and data for suppliers. Despite facing pressure from competitors and rising challenges like inflation and tariffs, Walmart remains committed to its low-cost model while increasing convenience and accessibility for customers. By leveraging its vast store network, automating processes, and improving its digital infrastructure, Walmart is competing directly with Amazon in both ecommerce and retail innovation, all while reshaping US retail dynamics.

IADS Notes: Walmart's transformation into a tech-retail powerhouse is evidenced by multiple strategic developments throughout 2024-2025. In February 2024, the company achieved $100 billion in e-commerce sales, followed by the August 2024 implementation of AI to enhance 850 million product catalog data points. October 2024 saw the launch of Wallaby, their proprietary AI system for personalised shopping, while December 2024 marked their best market performance since 1998, with an 82% surge in share value. The success of this tech-driven strategy is reflected in their ability to attract higher-income customers, with 75% of recent market share gains coming from households earning over USD 100,000. These developments culminate in projected record revenue of USD 681 billion for 2025, demonstrating how traditional retailers can successfully evolve into hybrid tech-retail companies.

Walmart’s transformation: from retail giant to tech competitor