Amazon on brink of overtaking Walmart as biggest retailer

AMAZON is on the cusp of surpassing Walmart as the world’s biggest retailer, with the online giant’s revenues potentially overtaking its long-time rival over Christmas.

Analysts expect Amazon’s quarterly revenue to come within touching distance of the US supermarket giant over the crucial festive quarter.

A slight overperformance from Amazon and a modest failure to meet forecasts from Walmart could see the online retailer leapfrog its bricks-andmortar competitor.

Amazon has been more valuable than Walmart for almost a decade but the Arkansas-based supermarket company has continued to post higher sales.

Estimates compiled by Bloomberg indicate Amazon will report sales of $166bn (£131bn) in the final three months of the year, while Walmart’s revenues are forecast to hit $170bn in its fourth fiscal quarter, the three months to February. The high end of estimates for Amazon’s revenue is $169bn, while the low end for Walmart is $167.6bn, suggesting that the online giant has a chance of overtaking Walmart.

The figures are not a like-for-like comparison. Amazon has large technology businesses including its cloud computing division Amazon Web Services, while Walmart’s sales include divisions such as bulk-buy store Sam’s Club.

The companies’ Christmas quarters also cover different dates, although they both include the crucial Black Friday and gift-buying periods. However, overtaking the 61-year-old retailer would be a landmark. A boom in online shopping during the pandemic and steadier growth since have closed the gap on Walmart. Amazon grew sales by 13pc in its last quarter, more than twice the 5.2pc rate of Walmart growth.

Separate numbers from data company Factset estimate that Amazon will fail to surpass Walmart this year but will overtake it by Christmas next year.

Amazon, founded by Jeff Bezos, is now worth $1.59trillion, four times Walmart’s $416bn valuation.

Walmart has invested heavily in its online operations in recent years to meet the challenge from Amazon, although its internet business remains a fraction of the size. Amazon, meanwhile, has struggled to break into physical stores despite multiple attempts, including opening its own convenience stores and supermarkets.

Total consumer spending on Amazon is already estimated to have surpassed Walmart. Amazon shares have climbed by 80pc this year.