Leaked Walmart memo reveals competitive threats
This kind of thinking is why grocery chains have struggled despite having the deck stacked totally in their favour.<p>Online retail, much like offline retail, is about physical infrastructure. You still need warehouses with all the product, you still need fulfilment, all online changes is the balance of those factors. The core assets don&#x27;t change.<p>I can see how they are losing on branding but losing to Instacart tells you that management lost touch with customers and sat on their laurels.<p>That being said, I have no doubt that they will vanquish Instacart. And they will likely pressure aspects of Amazon&#x27;s business too. It isn&#x27;t actually possible to compete with WMT because they such a dense network already (outside the US, AMZN is going to struggle even more, they weren&#x27;t aggressive enough in building fulfilment centres and they tried to build fewer, larger centres, Amazon will begin exiting some of these markets in the next five years and sell out to local operators with exiting fulfilment networks, an alternative would be they cede control over fulfilment to local operators and just operate the front-end website...either way, their position outside the US is likely unsustainable).