Does Amazon Own Walmart In 2026? Everything You Need To Know As A Shopper
As an avid online shopper, I rely on Amazon for everything from groceries to gadgets. But when I need something immediately, I end up hustling to the nearest Walmart. So I‘ve always wondered – does the e-commerce giant Amazon actually own the brick-and-mortar retailer Walmart?
As a comparison shopping addict and picky shopper, I decided to do some digging to uncover the relationship between these retail heavyweights. Because understanding Amazon and Walmart can help me save money and find the best deals as their fierce competition benefits us consumers.
Let‘s compare these shopping titans across key areas like revenue, stores, and acquisitions. Time to get the full scoop!
No, Amazon Does Not Own Walmart
Let‘s kick things off by answering the key question simply and directly:
No, Amazon does not own Walmart in 2024 or any other year.
Amazon and Walmart operate as completely separate businesses with no ownership stake in one another.
Walmart owns and runs Walmart.
Amazon owns and runs Amazon.
Any rumors you may have heard about an Amazon acquisition of Walmart are unfounded speculation. I‘ll explain more about why Amazon buying Walmart likely doesn‘t make strategic sense later on.
Walmart By the Numbers
Before we contrast Walmart and Amazon, let‘s break down some key stats on the world‘s largest company by revenue.
Founded: 1962 in Rogers, Arkansas by Sam Walton
Annual Revenue: $573.78 billion (fiscal 2022)
Net Income: $13.67 billion (fiscal 2022)
Locations: Over 10,500 stores globally
Employees: Over 2.2 million
Stores by Type:
-
4,742 Walmart stores in the U.S.
-
3,570 Walmart Supercenters
-
705 Sam‘s Club warehouses
Walmart remains a dominantly brick-and-mortar retailer, with over 90% of its sales coming from in-store purchases.
But it‘s rapidly expanding e-commerce too, enabling buy online and in-store pickup or delivery. Walmart‘s e-commerce sales grew 12% in 2022 to reach $77 billion.
Amazon‘s Meteoritic Rise
Founded in 1994 as an online bookseller, Amazon has experienced exponential growth over the past 25+ years:
Annual Revenue: $514.34 billion (2022)
Net Income: $33.36 billion (2022)
Stock Price: $103.41 per share, up over 200,000% since IPO
Online Stores: 30+ category-specific online stores like Zappos, Shopbop, Woot
Physical Stores: Amazon operates over 650 retail locations including Amazon 4-star, Amazon Fresh grocery stores, Amazon Style fashion stores and Amazon Go cashier-less convenience stores.
But e-commerce still accounts for over 95% of Amazon‘s sales. With a Prime membership surpassing 200 million worldwide, no wonder Amazon‘s revenue has grown at a 26% compound annual rate the past 5 years!
Different Business Models and Strengths
As major retailers, Walmart and Amazon take very different approaches:
| Walmart | Amazon | |
|---|---|---|
| Focus | Physical stores | Online e-commerce |
| Inventory | Stocks its own | Mostly 3rd party marketplace |
| Revenue Source | Primarily in-store | Mostly online orders |
| Core Strength | Massive grocery selection | Speedy delivery network |
"Walmart perfected the big box store and has tremendous brick-and-mortar footprint across the U.S.," said retail analyst Neil Saunders. "Amazon mastered e-commerce technology and fast delivery at scale."
Walmart has over 3 times as many physical stores as Amazon but only about one-tenth the e-commerce revenue. Yet as shopping shifts online, both retailers aim to leverage their strengths.
Would Amazon Acquire Walmart?
Given their dominance, you may wonder if Amazon would want to acquire Walmart. Let‘s examine the pros and cons of such a monumental merger:
Potential Benefits
-
Thousands of established Walmart stores could expand Amazon‘s physical reach
-
Amazon would gain Walmart‘s huge grocery and pharmacy businesses
-
Significant synergies in supply chain and logistics networks
Major Obstacles
-
Massive regulatory barriers to approve one gigantic retailer
-
Challenging to integrate two very different corporate cultures
-
Walmart‘s market valuation of over $400 billion likely far too expensive
-
Amazon must invest heavily to transform dated Walmart stores for e-commerce
According to leading antitrust lawyer Lina Khan, "It‘s unlikely Amazon could ever realistically acquire Walmart due to regulatory constraints and the differences in their business models."
My Verdict: Acquiring Walmart doesn‘t make much strategic sense for Amazon.
Focusing on what it does best – e-commerce, cloud computing and speedy delivery – is Amazon‘s recipe for success. Physical Walmart locations seem like more of a liability in today‘s digital era.
Major Acquisitions for Each Company
Although Amazon doesn‘t own Walmart, both companies have made substantial acquisitions in recent years to fuel growth in key areas.
Amazon‘s Biggest Buyouts
Whole Foods Market – Purchased the grocery chain for $13.7 billion in 2017 to bolster physical stores and expand into more perishable e-commerce like grocery delivery.
MGM – Acquired the Hollywood film studio for $8.45 billion in 2022 to gain content library and production capabilities for Amazon Prime Video.
Zappos – Bought the online shoe and apparel company in 2009 for $1.2 billion to diversify its e-commerce selection.
Twitch – Acquired the popular live streaming gaming platform in 2014 for $970 million to enter the online gaming market.
Walmart‘s Major Acquisitions
Flipkart – Gained a 77% stake in India‘s biggest e-commerce company for $16 billion in 2018 – Walmart‘s largest acquisition ever to expand into growth international markets.
Jet.com – Purchased this rapidly growing online retailer for $3.3 billion in 2016 and integrated it into Walmart‘s own U.S. e-commerce operations.
Bonobos – Acquired the digital apparel brand in 2017 for $310 million to appeal to younger, fashion-forward consumers.
Parcel – Bought this delivery logistics startup in 2017 to support Walmart‘s own shipping as it scales up online grocery.
Walmart Still Tops Amazon in Revenue
In the battle for the title of world‘s largest retailer, Walmart still maintains a revenue lead over Amazon – but barely.
| Company | 2022 Revenue | 5-Year CAGR |
|---|---|---|
| Walmart | $573.78 billion | 2.9% |
| Amazon | $514.34 billion | 26.3% |
*CAGR = Compound Annual Growth Rate
However, with e-commerce expanding at nearly 10x the pace of brick-and-mortar sales, most experts agree it‘s only a matter of time before Amazon surpasses Walmart.
"We forecast Amazon overtaking Walmart as the #1 global retailer by no later than 2025," says top analyst Ravi Shenoy.
Meanwhile, Walmart is furiously trying to defend its turf and make bigger digital investments of its own. The retail war wages on!
Could an Amazon and Walmart Merger Happen?
While Amazon acquiring Walmart currently seems unlikely, major consolidations can‘t be ruled out in the ever-changing retail space.
Here are a couple scenarios where an Amazon-Walmart merger could make more sense down the road:
-
If Walmart‘s growth stalls further while Amazon keeps rapidly expanding, buying Walmart may help Amazon get into brick-and-mortar faster.
-
If in-store sales decline precipitously due to shifting consumer preferences to shopping online, Walmart may look to an e-commerce savvy suitor.
-
Advances in delivery drones, self-driving vehicles, automation and other emerging technologies may help overcome some of the substantial integration challenges.
But any potential deal would still face rigorous antitrust scrutiny. Ultimately, the consumer is king – so whichever innovations deliver the most value will win out.
The Bottom Line for Shoppers Like Us
As a bargain hunter who loves having options, I‘m glad Amazon does not currently own Walmart. Their intense competition keeps each company innovating to gain our dollars and loyalty.
The heated retail rivalry results in lower prices, expanded selections, faster deliveries and new conveniences for us shoppers – whether in-store or online.
And as shopping habits continue evolving in coming years, both giants will be forced to adapt to meet our needs or get left behind.
So while I can‘t predict the future, I‘ll be eagerly watching how these retail titans continue to battle. Because their innovations directly impact my wallet and shopping experience!