Amazon's big, new delivery push targets Walmart's biggest advantage, Bank of America says
BofA analysts say Amazon's plan for more than 1,000 same-day delivery hubs is a bid to close Walmart's powerful proximity advantage.
Amazon is expanding its delivery network with a plan to build over 1,000 same-day fulfillment centers, according to Bank of America analysts. The goal is to close Walmart's proximity advantage by placing inventory within 10 miles of about 80% of Prime members in the US. The company is calling this project Project Mercury and has already invested $6.8 billion.
Analysts believe the strategy is less about expanding selection and more about making high-demand products immediately accessible. Amazon's current same-day fulfillment centers carry a narrower assortment of roughly 90,000 fast-moving products. The investment is seen as manageable for Amazon and could generate $7.1 billion in economic value over the next decade.
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