Date of Graduation

5-2018

Document Type

Thesis

Degree Name

Bachelor of Science in Business Administration

Degree Level

Undergraduate

Department

Finance

Advisor

Rennie, Craig

Second Reader

Norwood, John

Abstract

The retail industry is in the process of undergoing major change. Historically big box brick and mortar strategies have dominated, but this is changing in the age of impatience and instant gratification. As consumers want items more conveniently, online retail has taken hold with no semblance of anticipated decline. At the forefront of this transformation are two industry giants: Walmart and Amazon. Walmart finds itself on the side of brick and mortar with 11,718 physical retail locations worldwide. Amazon is dominating the online retail space with control of a staggering 44% of all US e-commerce sales in 2017. These equally powerful yet opposing forces seem to have come to a realization. Walmart has determined that a purely brick and mortar strategy will not suffice and there must be a major focus on expanding e-commerce. Amazon has come to the realization that a pure e-commerce play will not be as effective as a mixed approach and is working into the brick and mortar space. As each giant finds itself on opposite sides of the spectrum they seek to reach the ideal equilibrium between physical and online retail, and acquisitions have been the remedy of choice.

Keywords

Acquisition, Walmart, Amazon

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