Now Amazon wipes £23bn off world’s biggest supermarket

AlMOst £23bn was wiped off the world’s biggest retailer last night as it fought a losing battle with bitter rival Amazon.

shares in Walmart, which owns Asda, suffered their biggest-ever one day fall, losing 10.2pc.

the drop knocked £22.6bn off its value – equivalent to more than the combined worth of tesco and sainsbury’s, the UK’s two biggest grocers. last night Walmart was worth £200bn when markets closed.

the threat from Amazon is placing huge financial pressure on Asda, which has been lagging behind its rivals in the past year. Walmart has been accused of under-investing in its UK business.

shockwaves rippled through the Us stock market as the retail giant suffered a sharp drop in online sales growth over Christmas. Walmart is the world’s biggest retailer by revenue and employs 2.3m internationally. Each week more than 270m customers visit its 11,700 stores and websites.

Although its annual £348bn sales outstrip Amazon’s £125bn, the business – which has shops in 28 countries – has struggled to keep pace with the online retailer’s aggressive price cuts.

Amazon stunned the supermarkets by buying Whole Foods Markets for £10.3bn last year, and is rapidly rolling out its Fresh delivery service.

Walmart has been investing billions in online to stave off the challenge, and recently bought ecommerce company Jet, one of the fastest growing online firms in the Us. But yesterday Walmart was forced to admit its growth was slowing. sales grew by 23pc over the crucial festive period, compared to 50pc in the previous three months. total sales, including online and stores, increased 4.1pc at the group to total £97.3bn in the final quarter of the year. Profits dived 28pc to £3.2bn.

Analysts at Moody’s said a squeeze on Walmart’s margins comes amid an ongoing price war with Amazon.

laith Khalaf, senior analyst at Hargreaves lansdown, added: ‘traditional retailers like Walmart are waking up to the fact they have to compete with Amazon on its own turf, the internet.

‘However, that’s easier said than done given Amazon’s ecommerce experience and its relentless focus on growth and innovation.’

Asda managed to scrape an increase in sales growth over Christmas, edging up 0.5pc compared to the previous period. the rise failed to match the 1.1pc of growth in the previous three months, but was the third consecutive quarter of sales growth following three years of decline.

Walmart chief executive Doug McMillon said: ‘We know we have more work to do in the UK, however we are encouraged by recent results in key areas.’

Overall, Walmart’s international business, which includes the UK, Africa, Japan and Canada, saw sales rise 6.7pc.

Ocado’s shares jumped 4.5pc, meanwhile, after brokers tipped the firm for a number of lucrative tie-ups in the Us.

Analysts believe it is only a matter of time before a Us retailer like Kroger or Walmart come knocking on Ocado’s door to help them ramp up their online presence.