How Brick-and-Mortar Infrastructure Is Giving Walmart a Competitive Edge Over Amazon

Abstract

The competition between Walmart and Amazon represents a fundamental clash of retail philosophies. Amazon built dominance through digital infrastructure, cloud computing, and sophisticated logistics networks. Walmart leveraged decades of physical retail presence across thousands of U.S. stores positioned near the vast majority of American consumers. Geographic proximity creates last-mile fulfillment advantages unavailable to centralized warehouse operations. Grocery commerce favors established physical infrastructure due to perishable product handling requirements and cold chain expertise. Walmart generates substantial revenue from grocery operations developed through decades of supplier relationships and inventory management. Capital efficiency improves through dual-purpose asset utilization rather than constructing dedicated fulfillment facilities. Amazon operates hundreds of fulfillment centers globally requiring substantial upfront investment. Physical stores account for the majority of retail sales, challenging assumptions about digital commerce inevitability. Store networks enable fulfillment capabilities, grocery dominance, and customer experiences difficult to match by pure e-commerce platforms. The omnichannel integration of physical and digital capabilities determines competitive sustainability in contemporary retail environments. Brick-and-mortar presence constitutes strategic advantage rather than operational liability.