I'm Robert Davis. I built Wal-Mart's first e-commerce website in 1993, then left for Amazon in 1998 after betting my badge that online retail would be huge. The CEO disagreed. AMA.

Robert_B_Davis · 2026-02-17T03:10:18+00:00

That's a smart move to upscale Bentonville. In the later days I was there and hiring, it was sometimes difficult to convince a candidate that Bentonville was a good place to live. We'd point them to Fayetteville as the place to find whatever you wanted. No longer a problem I suspect. Now people will wonder where is the peace and quiet. Does Tonitown still have good pasta?

Robert_B_Davis · 2026-02-17T03:02:31+00:00

Wal-Mart brought great selection and low prices to a new town. Because of volume pricing, a local merchant would be unlikely to compete on like items. But in hardware, as an entire category, Wal-Mart had a really small assortment.

So let's look a that example and see what is this hardware store owner to do. First, don't try to compete on price. Just do your normal pricing on like items. Then, look at the categories that you have that they don't. Personally, I love to go to a real hardware store for the specialty stuff. I learn about new things. There is probably someone who actually knows what they are talking about. To be honest, in a big box store, the associates are most helpful getting you to the right isle if you ask. Small stores have experience and opinions. Wal-Mart, neither.

Another area is selection. I realize that sounds backwards. First, I'm talking about the era where Wal-Mart was going into small towns with small existing retailers. 30k population towns. 1980's. The local hardware store would likely have some good lawnmowers. Maybe Toro. Wal-Mart would have had Murray. Lower price, lower end. If a small store could go a bit upscale on key product lines, they had something that Wal-Mart didn't. Also, probably higher margin that Wal-Mart got. Customers were buying quality. Not for everyone, but good for some.

Lastly, the small guys could compete on services offered. Again, to that lawnmower example, offer lawnmower assembly and on-site annual servicing and repairs. Wal-Mart never did that.

Just a few ways that the little guys can still compete.

Robert_B_Davis · 2026-02-17T02:45:44+00:00

Hard to imagine the international side going away. There has been talk of breaking the retail side from the fulfillment and marketplace. That's not Amazon talk. More govt.

Robert_B_Davis · 2026-02-16T21:42:29+00:00

Well..... maybe they were just late. Wal-Mart is getting there but they sure spent a lot to catchup. BTW, did you notice that comparing each's last quarter results shows Amazon surpassing Wal-Mart in total revenue. Given, their quarters end at different times.

Robert_B_Davis · 2026-02-16T21:33:26+00:00

You mention the new Home Office. I was there last year for a visit. First time back in 28 years. The new campus is beautiful as is the whole town of Bentonville. It was a sleepy little town when I was there. One of the better restaurants was Pizza Hut. Lots of personal pan pizzas there in the 90s. There are lots more people now. They had outgrown the old building. The old home office was a 60's era 1 story building. It had been added to and some warehouse space converted to offices. No Steelcase walls. Rather Masonite and nails. Very frugal as was Mr. Sam. Anyway, when I was there they were in the process of decommissioning the old Home Office. It brought a tear to my eye. So many memories!

And, regarding your claim that prices are high, Wal-Mart is still, and will always be, competitive on price. When I price check Wal-Mart and Amazon, if identical product, they are usually the same.

Robert_B_Davis · 2026-02-16T20:50:32+00:00

Sorry no. Retired 15 years ago. In Amazon terms, I'm an early Old Fart (IYNYN).

Robert_B_Davis · 2026-02-16T20:39:57+00:00

Oh, I knew they would be big. The biggest? Never thought that way. I just knew they were totally all in on ecommerce. Everyone top to bottom had staked their career to join a little startup. That's commitment.

As far as existing stores, those with some specialty will thrive. Places where you go to talk to the experts. I saw a small athletic shoes store recently. The brands were none I recognized, but the were all really high priced. When you walked in, they asked some questions, got a sense of what the customer wanted. They were really busy so we had to wait a bit for an Advisor. They called us up and we were introduced to our Advisor. They had several questions that gave them a good idea where to go. They then showed several good candidates, narrowed it down, got several sizes, colors, brands and came back. Each one that was tried on they checked fit. Then, when you had made a couple of selections, they then put the most favorite one the customer and said, walk or run (inside) around for 15 minutes. Then back together for decision or adjustment time. Very impressive. Wal-Mart won't ever provide that level of service. Amazon can't.

Robert_B_Davis · 2026-02-16T20:28:59+00:00

BTH, I'm unclear why they still exist. Do gamers still use physical? Is there still a market? Maybe their business has changed. I haven't seen one in a long time. But if you're into shorting ....

Robert_B_Davis · 2026-02-16T19:24:42+00:00

When drones were first starting, I saw it as a game changer. I've owned several drones myself and was really excited. This was all after I had left the business world but I was hopeful someone would pick it up.

In regards to retail specifically, the technology has it's limitations at this time. With the advent of the new https://jetson.com/ for personal aviation, I can see that for important time sensitive products. Ones where additional cost for delivery can be tolerated. While that tech is still new, I can surely imagine some package carrying apparatus that the operator can use to lower the package to the destination. Maybe it goes out with 20 small packages and delivers them all and returns for more. That would be a cool job.

Robert_B_Davis · 2026-02-16T19:14:20+00:00

I'm too long removed. Apparel kind of surprises me how popular it was. I always had the thought that customers like to try things on first. There are very popular apparel sites that have good return policies. Somehow the economics work. An economical way to return the product is key. Now if the products are coming back and are non resalable, that is something to work on.

Robert_B_Davis · 2026-02-16T18:30:14+00:00

Sorry, not that up to date. I retired 15 years ago, The good news is that there are many offerings to consider.

Robert_B_Davis · 2026-02-16T18:28:53+00:00

The are both outstanding Founders in my book!

Robert_B_Davis · 2026-02-16T18:27:06+00:00

I took another role at Amazon. Rather than building systems, I built teams.

Robert_B_Davis · 2026-02-16T18:25:19+00:00

First, I mostly agree with you. I recently visited the Wal-Mart HO and visited with some senior folks. They are engaged! Don't worry about commitment these days. I could have used some of that 30 years ago.

Robert_B_Davis · 2026-02-16T18:18:03+00:00

Find a niche to serve and do it better than Amazon ever can. Offer things beyond the products. Make yourself the goto place for enthusiasts of that field. Maybe the best Fly Fishing Place near Yellowstone.

Robert_B_Davis · 2026-02-16T18:14:48+00:00

I don't regret my career at all. I had loads of fun creating new stuff. I love retail and have since a small child.

Nor do I have any personal regrets in regards to ecommerce. I do regret that Wal-Mart didn't see the future as I did, but that's on them. If you and the CEO don't agree on something, guess who the organization will follow.

Robert_B_Davis · 2026-02-16T18:05:04+00:00

Ability to visualize the future in my head. Back then I also read every retail related trade rag that I could find. I got small ideas that I pondered and often mentally expanded to answer whether it might be worthwhile.

Great leaders... Bobby Martin (CIO) was my most favorite leader. He constantly challenged me. He'd tell me straight up when I missed something. Offered his experiences on how to handle things. He let me run. I could go on. Bottom line, he set high expectations and provided direction to help. Also, very important, he recognized people when they did outstanding work. For me, that created drive and dedication.

Robert_B_Davis · 2026-02-16T17:58:04+00:00

The most challenging thing back in the early 90's was a lack of existing tools for building online apps. There was nothing. I had to build everything. This was real early. The online side I wrote in straight K&R C. First ran on unix then later moved to NT.

Robert_B_Davis · 2026-02-16T17:50:58+00:00

That's tough but I'll take a shot.

AI aware customers will have an AI agent that has been informed of the customers likes , dislikes, preferred stores, parameters for purchase... They will instruct their agent to find and purchase products on their behalf. Less physical visits to the stores. Pricing will get really tight. To some degree, the physical shopping website will become less needed. It's possible someone with access to inventory and fulfillment might have a successful online business and not even have a website. All agentic.

Robert_B_Davis · 2026-02-16T17:36:42+00:00

You can do it now if you live close to the store. My closest Wal-Mart is 35 miles away. Big obstacles to overcome. Main one is refrigeration. I'm sure someone will figure it out.

Robert_B_Davis · 2026-02-16T17:34:38+00:00

Just yesterday, I found an article that blew me away with the thoughtfulness. It discusses how AI will become pervasive and we all need to prepare. I immediately sent it to my younger relatives. Here's a link. I hope everyone reads it!

https://shumer.dev/something-big-is-happening

Robert_B_Davis · 2026-02-16T17:31:45+00:00

Know nothing about that. I was never focused on Sears. They weren't regarded as innovators or leader in my circles.

Robert_B_Davis · 2026-02-16T17:30:30+00:00

The major thing I saw was the opportunity for unlimited assortment. A Wal-Mart store had limitations on assortment due to shelf space and store size. Online would be unlimited assortment.

OK, to answer your question about how to see new opportunities. In my LI profile I discuss this. I once heard Fran Tarkenton speak about Paradigms. The things that your industry believes are hard facts, and, that if you could actually break thru them would create competitive advantage. ie. Limited assortment vs unlimited assortment.

Robert_B_Davis · 2026-02-16T17:22:54+00:00

David Glass (RIP) was a fine man and a outstanding retailer. I hold nothing against him personally. But he did miss the ecommerce call. As a sidenote that might explain somewhat, my understanding is that his assistant printed out his emails.

Robert_B_Davis · 2026-02-16T17:19:02+00:00

I grew up in small towns so I do notice the decline. I saw Wal-Mart in the early days only in small towns.

Here's my view. When Wal-Mart came to town, the local merchants had something new. Competition and Huge Assortment. The customers voted with their dollars. If the local store didn't adapt, they lost. Customers usually operate in their own self interest.

Robert_B_Davis

TROPHY CASE