Memorial Day has become a crucial moment for Amazon and Walmart, offering each a chance to showcase innovation, strengthen customer loyalty, and test their retail strategies. As both companies navigate a challenging economic environment, artificial intelligence (AI) is taking center stage in their efforts to win over consumers during this key shopping period.
Walmart, once known primarily for its brick-and-mortar dominance, has transformed its digital presence. The company reported a 21% rise in U.S. e-commerce sales, driven by investments in AI and a renewed focus on customer-centric services. Recently, Walmart launched generative AI tools aimed at helping both shoppers and employees by simplifying product searches and improving inventory accuracy. However, this progress comes alongside internal restructuring, including job reductions in tech and fulfillment teams, as the company reallocates resources to higher-growth areas.
Amazon continues to embed AI deeply into its operations. New features, like AI-powered search in the Amazon Music app, reflect the company’s strategy to create more intuitive, personalized experiences. Amazon is also equipping its vast network of independent sellers, responsible for 60% of its sales, with generative AI tools to improve listings, manage inventory, and enhance engagement. Like Walmart, Amazon has also trimmed its workforce in targeted areas, cutting 100 roles in its devices unit to sharpen its operational focus.
Both companies face inflation, shifting consumer behavior, and evolving trade policies. Walmart has adjusted prices due to the effects of U.S. and international tariffs. In contrast, Amazon has shown resilience, with CEO Andy Jassy noting that tariffs have had little impact on the company’s pricing or sales, thanks in part to its flexible supply chain.
In logistics, Amazon will once again use FedEx to deliver large packages, ending a six-year break, while also scaling back deliveries with UPS.
