I think Walmart and Amazon are aiming at two different demographics.
It's more accurate to say that WM wants to be where Amazon sells.
The average Walmart shopper is a white, 51-year-old female with an annual household income of $56,482 - Kantar Retail study, Business Insider
Median household income for an Amazon shopper is $90,100, similar to Whole Foods at $95,200. Target reports its average shopper earns $87,000. These far exceed the U.S. median household income of $55,322. Source: market research firm GfK MRI
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Acquisitions bring Wal-Mart more educated and affluent shoppers
Digital Commerce 360 website | May 1, 2017
A recent analysis by Bizrate Insights of consumers shopping Walmart.com and the websites of four e-retailers it’s acquiring—and one it’s rumored to be about to buy—shows that the acquisition targets attract a significantly different kind of shopper.
The four companies Wal-Mart has acquired—Jet.com, Moosejaw, Shoebuy.com Inc. and ModCloth—along with rumored acquisition target Bonobos, sell to consumers who look different on certain demographic metrics than those that shop at Walmart.com.
For example more than two-thirds of the customers of those five retailers have a college degree versus less than half for Walmart.com, and more than 57% live in households with annual income in excess of $75,000 versus 41.5% for Walmart.com. That analysis is based on data from nearly 1,000 consumers who shopped online at Walmart.com and the other five companies’ websites in April.
There is relatively little overlap between Walmart.com and the companies it’s adding to its e-commerce portfolio. Only about one in six Jet.com shopper has shopped Walmart.com in the past six months, and the percentages are under 10% for the other four online retailers.
Acquiring these companies will bring Wal-Mart some new online business, but the bigger reason Wal-Mart is buying these online retailers is to acquire e-commerce talent, says Anderee Berengian, CEO of Cie Digital Labs, which helps retailers and brands develop technology. He says big retailers like Wal-Mart struggle to attract the top talent in Silicon Valley, and these acquisitions “are a way to get the brainiacs they couldn’t get because they wouldn’t work at Wal-Mart.”
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but I have only found One item in the past 2 or 3 years that was cheaper on Amazon.>>
You misunderstand Amazon's appeal. Amazon consumers do not shop for the absolutely lowest price. They shop for a REASONABLE price that saves them TIME AND EFFORT. I emphasize these words because it is critical to understanding why the retail environment is changing so drastically and quickly.
This is why malls are dying. This is why Gen Xers and Millennials care more about whether their packages are going to be stolen off their doorstep than where the nearest K-Mart or Target is.
You are very correct that Amazon is set up for the urban customer. It's where the money is, and that's why WM is trying to open more stores in big cities it formerly avoided. 80% of people in the world live in cities. This proportion is also accurate in the U.S., btw. And this proportion is forecasted to increase substantially in future years.
People go where jobs are, and rural jobs pay much less than urban jobs. It does no good to say that RE is cheaper in rural areas, when the jobs barely pay enough to cover housing and there's no health or retirement benefits given.