Amazon to overtake Walmart as biggest U.S. retailer in 2022, says report

JPMorgan Chase & Co, technology, United Parcel Service Inc, United States, Walmart Inc

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Amazon to overtake Walmart: In response to a JPMorgan analysis launched on Friday, Amazon is on the lookout to Amazon to overtake Walmart as the largest US retailer in 2022.

In response to the firm’s analysts, Amazon’s U.S. The retail enterprise is the “fastest growing to scale”. Between 2014 and 2020, Amazon’s US gross merchandise volume (GMV) – a carefully watched trade metric used to measure the absolute value of products offered in a given time interval – was reported for each US adjusted retail gross sale. And the US has grown “significantly faster” than E. -Commerce, the analysts noted.

Amazon to overtake Walmart as biggest U.S. retailer in 2022

Neither Amazon nor Walmart shy away from GMV in their quarterly earnings results, although JPMorgan estimates that Amazon’s GMV is growing faster than that of its largest retail competitor. Analysts at JPMorgan noted that Amazon’s GMV grew 41% year-over-year to $316 billion in 2020, while Walmart’s GMV is projected to increase 10% year-on-year in 2020 to $439 billion. Amazon to overtake Walmart as biggest U.S. retailer in 2022.

“Based on current projections, we believe Amazon could surpass Walmart to become the largest US retailer in 2022,” JPMorgan analysts Christopher Horvers and Doug Anmuth wrote Friday.

Amazon to overtake Walmart as biggest U.S. retailer in 2022
Amazon to overtake Walmart as biggest U.S. retailer in 2022

Howers and Anmuth highlight a number of elements they imagine are driving Amazon’s top-line growth, along with “larger and less-entry categories” such as grocery and apparel, third-party seller grosses. Strong growth of sales and “prime flywheel.” Amazon CEO Jeff Bezos noted in April that the firm now has over 200 million Prime customers, up from 150 million in early 2020.

The coronavirus pandemic accelerated the adoption of e-commerce and cemented Amazon’s dominance in retail. Stuck at home customers turned to Amazon for a plethora of products ranging from rest room paper to exercise gear. They also relied on Amazon for services they might not have thought of in any other case, such as online grocery supplies.

Amazon’s pandemic-fueled gross sales growth has helped grow its piece of the e-commerce market. JPMorgan estimates that Amazon will increase its share of the US e-commerce market to 39% in 2020, up from 24% in 2014.

The rapid adoption of e-commerce has also fueled other areas of Amazon’s business.

Amazon is on track to “become one of the largest delivery companies” in the US, Bank of America analysts wrote in an analysis revealed Tuesday.

Analysts wrote, citing data from MWPVL International, a supply chain and logistics consulting agency, that Amazon forecasts to ship 7 billion packages in 2021, surpassing the nearly 6 billion packages UPS has to deliver in the US this 12 months. Predicted to ship.

Amazon to overtake Walmart as biggest U.S. retailer in 2022
Amazon to overtake Walmart as biggest U.S. retailer in 2022

In the current years, Amazon has quietly built a transportation operation that takes on the likes of UPS, FedEx, and USPS. It maintains an ever-growing community of warehouses and last-mile supply stations, and a vast logistics operation with airplanes, vans and vans.

This has allowed Amazon to ship most of its orders on its own. Amazon currently delivers packages to other businesses in the UK and sooner or later that service will be rolled out to the US.

MWPVL estimates that Amazon dealt with about 5 billion of the 7.35 billion packages shipped in 2020. Responding to Bank of America analysts, UPS and USPS separately struck deals worth 1.25 billion and 1.1 billion, respectively.

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