What: Amazon is increasingly threatening Walmart, through its non-retail activities.

Why it is important: Walmart, a true retailer, does not stay idle and goes all in in many innovative fields, without the fear of failure, and paving the way for other etailers in the world.

Walmart, the nation's top revenue-generating company for a decade, achieved sales of $648 billion last year. Despite its dominant position, which aids in negotiations and influences policy, it faces potential overtaking by Amazon, which reported $575 billion in revenue, showing a 12% increase compared to Walmart's 6% growth. Walmart's growth target is 4% annually, translating to an additional $26 billion needed this year. Despite challenges like consumer confidence fluctuations and corporate job cuts, Walmart continues to innovate in revenue streams and market share.

Amazon differs from Walmart by generating significant profits from non-retail sectors like cloud computing and advertising, while Walmart remains primarily retail-focused, growing its digital and advertising ventures. With Amazon's expected revenue potentially surpassing $700 billion soon, Walmart is aggressively expanding through new stores and premium product lines, aiming to appeal more to higher-income consumers, traditionally more likely to shop at competitors like Amazon and Costco.

Internally, Walmart is focusing on understanding and adapting to shifting consumer behaviors through extensive data analysis. This has led to initiatives aimed at improving customer satisfaction through better inventory management, checkout processes, and store layout adaptations, targeting diverse income demographics more precisely. Walmart's efforts in enhancing store experience and product offerings are part of a broader strategy to maintain its market position against rising challenges, especially from Amazon.

Walmart is increasingly threatened by Amazon, and reacts accordingly