How Walmart and Target Survived Amazon

Amazon just passed Walmart in annual revenue for the first time. $716.9 billion versus $713.2 billion.

A decade ago, that headline would have read like an obituary for traditional retail.

But today, it isn’t.

Walmart’s stock has compounded roughly 197% over five years. Target, even after a brutal 18-month drawdown, still compounds at 13–14% annually over twenty years. Both companies generate over 4% operating margins on ...