Business Wars

Ninety-six percent of Americans now shop online, snapping up everything from rare coins to industrial-sized barrels of hand sanitizer. Almost half of those purchases take place on one website: Amazon. But before sales were a click away, Walmart was the top dog, decimating main streets across America with its big-box efficiency and ruthlessly low prices. It’s 1994, and a slim 30-year-old with thinning hair dreams of leaving his high-paying finance job to sell books on the internet — a move he’s convinced is his ticket to one day dominating the world of e-commerce. Jeff Bezos just has to break the news to his parents. Luckily, he’s already found the perfect name for his new venture.

In the late 1990s, Walmart is happily trucking along, dominating the American retail market. They’re expanding locations and increasing their own backend efficiencies to keep prices low. It’s a formula that’s worked for decades and they see no reason to change now. But as Bezos expands Amazon’s offerings, he quickly realizes that he doesn’t have the infrastructure to keep up with his ambitions. His warehouses are in chaos. There is only one company that knows infrastructure at the scale he envisions: Walmart. When Bezos starts poaching Walmart’s executives, he brings Amazon into Walmart’s sights. And they don’t like what they see.

By the mid-2000s, Walmart is starting to show some cracks. They are still successful, but bad press and sluggish growth are taking a toll on their earnings. The company debates the best way to move forward, including focusing on online sales, something they’ve long eschewed. As Walmart waffles, Amazon launches a risky new program that sews internal dissent, but moves the goal posts for e-commerce once again.

Walmart finally decides to focus aggressively on its e-commerce division, but struggles with the best way to use the internet to reach consumers. They decide their best strategy is to buy up successful online retailers. Unbeknownst to Walmart, Amazon, which is looking to move into apparel sales, is pursuing a similar strategy. As the two companies go head-to-head over an unlikely product, Walmart is unprepared for just how dirty Amazon will play.

Amazon decides to go after Walmart’s biggest category: fresh food. But moving into groceries is harder than Bezos expected. Meanwhile, Walmart has finally found success in marrying their online operation with their brick and mortar stores by allowing consumers to order groceries online and pick them up at a store. And with an aggressive new head of online sales — who has a personal vendetta against Bezos — Walmart is feeling good. But, determined to make an impact in the world of fresh food, Bezos makes a move that surprises everyone and upends the retail world yet again.

As the COVID-19 virus spreads across the globe and forces people inside their homes for months, the world relies on online shopping more than ever. Amazon and Walmart both struggle to keep up with surging demand as their legendary infrastructures are put to the test. And workers inside both companies rise up, arguing that the retail giants are failing to protect them from the virus, prioritizing the bottom line over workers’ health. They’re both more powerful than ever, but also more vulnerable.

Since the novel coronavirus hit, Amazon and Walmart have seen a rise in profits, unlike many other retailers. But there have also been struggles to keep up with the flood of customer demands during the pandemic. Hundreds of thousands of workers have been hired collectively between Amazon and Walmart. And employees for both companies have accused management of not protecting workers enough from the threat of COVID-19. So how are Amazon and Walmart handling the pushback from disgruntled employees? And will they become even bigger threats in the retail market once the pandemic ends? To find out what the future holds for these companies, we turn to Jason Del Rey, a senior correspondent covering commerce at ReCode. Del Rey also hosted a podcast from Vox and ReCode called “Land of the Giants: The Rise of Amazon.”