[Annotated] The beast of Bentonville battles Amazon, the king of the e-commerce jungle

Amazon's position today is^[각주:1] earlier reminiscent of^[각주:2] Walmart's circa 1999^[각주:3]

A boa constrictor^[각주:4] swallowing capitalism^[각주:5]. A cyclone^[각주:6] dragging the economy into^[각주:7] its vortex^[각주:8]. If you look back at how^[각주:9] people described Walmart a decade ago, it is eerily similar to how^[각주:10] Amazon is viewed now. The supermarket chain has "a scale of economic power^[각주:11] we haven't encountered before", warned "The Walmart Effect", a best selling book in 2006. But capitalism never stands still^[각주:12]. The world's largest company by sales is now the perceived underdog^[각주:13] in an escalating grocery war with^[각주:14] Amazon to fill 320m American bellies. The struggle will probably end in^[각주:15] a messy stalemate^[각주:16]. That will mean mediocre^[각주:17] returns for investors - and happy days for consumers. 

Just when Walmart's aura^[각주:18] was at its most intimidating^[각주:19], in 2006, stagnation^[각주:20] beckoned^[각주:21]. Its reputation for bullying its suppliers and staff became toxic. Over the next decade it hit^[각주:22] saturation point^[각주:23]. About 95% of Americans shop at^[각주:24] Walmart at least once a year. It has three square feet of^[각주:25] shop space for^[각주:26] every adult in the country and has sunk $83bn into^[각주:27] a fixed-asset base that^[각주:28] is the fourth-largest owned by any American firm. Investors have worried for years that this empire of aisles and tills^[각주:29] run from Bentonville, Arkansas, would become obsolete^[각주:30] - what did Walmart's executives, schooled in^[각주:31] the arts of beating up baked-beans^[각주:32] suppliers^[각주:33], know about the slick world of^[각주:34] e-commerce being dreamed up in^[각주:35] Silicon Valley and Seattle?

More than you might think. This year Walmart's shares have risen by 40% on hopes that^[각주:36] it has more than a fighting chance^[각주:37]. It is clear that selling groceries online is very different from selling books. In food, penetration of e-commerce is low^[각주:38], at 2%, compared with 9% for all retail. Food is perishable^[각주:39]. People will not stuff it in their mouths unless^[각주:40] they trust its provenance^[각주:41]. They also want flexibility^[각주:42] - to buy food in a store, to order online and pick it up themselves, or to have it delivered to their homes. So some physical infrastructure^[각주:43] is helpful. "I wouldn't want another set of assets," Doug McMillon, Walmart's boss, told the Economic Club of New York in November.

He has run Walmart's businesses in Europe and Asia, where e-commerce for groceries is more developed. In 2016 Walmart spent $3bn buying jet.com, an e-commerce firm whose boss, Marc Lore, now runs all Walmart's online operations. Walmart has launched internet-based services such as "Easy reorder" and "Pickup discount" and formed a partnership with^[각주:44] Latch, which lets its users open and lock their front doors^[각주:45] remotely^[각주:46]. On September 29th it acquired^[각주:47] Parcel, a logistics startup^[각주:48]. On December 6th it changed its legal name from Walmart Stores, to^[각주:49] just Walmart.

There are three reasons to be optimistic. First, Walmart's performance has improved. In the most recent quarter, same-store sales rose by^[각주:50] 2.7% year on year^[각주:51], and store traffic^[각주:52] by 1.5% Food sales increased at their fastest pace in six years^[각주:53]. Sales from^[각주:54] e-commerce represent only about 2% of the total but are rising at an annual rate of^[각주:55] 50% (customers who shop online and in stores typically spend twice as much as those who only go to stores). Walmart has the second-most-downloaded retail app, after Amazon's.

Second, Amazon's behavior is a backhanded compliment^[각주:56]. In June it spent $14bn on Whole Foods, a mid-sized^[각주:57] grocery chain,^[각주:58] The deal brings Amazon more physical locations to sell, sort and dispatch goods. It also gives it trusted private-label brands^[각주:59], of the kind^[각주:60] Walmart already has. If you type "spinach^[각주:61]" into Amazon.com, bags of Whole Foods branded^[각주:62] greenery^[각주:63] appear. 

Lastly^[각주:64]    , the example of China points to^[각주:65] a fusion of^[각주:66] the online and physical worlds. In some ways the country is more advanced than^[각주:67] America; e-commerce comprises 9% of grocery sales, according to Alliance Bernstein, a research firm. On November 20th Alibaba, an e-commerce giant, bought 36% of Sun Art Retail, a hypermarket^[각주:68] retailer^[각주:69]. Four of the six biggest Chinese supermarket chains have partnerships with e-commerce platforms. (Walmart, which has 424 stores in China, has teamed up with^[각주:70] JD.com.)

The duel between^[각주:71] Walmart and Amazon could go in two directions. It might escalate into a war across^[각주:72] America, for both companies hate losing. Or each firm might conquer different geographical areas and demographic groups^[각주:73]. Amazon could seize^[각주:74] well-to-do cities^[각주:75], where population density is high^[각주:76] and home delivery^[각주:77] is more efficient. Walmart could continue to rule suburbia^[각주:78]. 

Either way^[각주:79], margins^[각주:80] will probably be squeezed as^[각주:81] Amazon throws money at the fight with its customary abandon^[각주:82]. Mr McMillon knows this. "One of the challenges at Walmart is that we don't have free money^[각주:83] - we are expected to make a profit^[각주:84]," he says. The danger is that it overestimates how much physical presence it needs. If it went back to its position in 2006, it could cut its domestic asset base by^[각주:85] 34% and still have 90% of Americans within 15 miles of a store. For every dollar of sales, it has twice as many square feet of sales and distribution space as Amazon's retail operation (including Whole Foods). If Mr McMillon is brave he will sell stores and return capital to investors. Walmart needs to make its balance-sheet^[각주:86] leaner^[각주:87]. 

What's in store for Amazon

Walmart is probably the most formidable^[각주:88] adversary^[각주:89] Amazon has ever faced. Disrupting^[각주:90] the music, book and media industries, each known for their Corinthian spirit^[각주:91] and long lunches, was child's play^[각주:92] compared with taking on^[각주:93] Walmart, with its fanatical commitment to^[각주:94] low prices. 

Walmart's history is also a warning. If you examine the two companies' financials, Amazon today looks almost identical to Walmart in 1999. It has annual sales of^[각주:95] $160bn or so^[각주:96], low margins, fast growth, a ballooning asset base^[각주:97] and massive capital investment^[각주:98]. The firm's managers are on a high and investors have dizzying^[각주:99] expectations for the future. But for the ten years after 1999, Walmart's share price was as flat as pancake^[각주:100], because all the good news was already baked in^[각주:101]. The actual business of world domination turned out to be a long, hard slog^[각주:102]. 

1. position ; 4. SITUATION | [C] [주로 단수로] ~ (to do sth) (영향력과 관련된) 위치, 처지, 입장 [본문으로]
2. reminiscent ; 1. ~ of sb/sth 연상시키는 ;; 미국∙영국 [|remɪ|nɪsnt] [본문으로]
3. circa ; [전치사] (연도와 함께 쓰여) c (라틴어에서) 약, …경 [본문으로]
4. boa constrictor ; [명사] (또한 boa) 보아뱀(남미산 대형 뱀. 동물을 칭칭 감아 으스러뜨려 죽여 먹이로 삼음) ;; 미국식 [|boʊəkənstrɪktə(r)] 영국식 [|bəʊəkənstrɪktə(r)] [본문으로]
5. swallow ; 3. COMPLETELY COVER | [타동사][VN] [흔히 수동태로] ~ sb/sth (up) (다른 대상을) 완전히 가리다[집어삼키다] [본문으로]
6. cyclone ; [명사] 사이클론(강한 회오리바람을 일으키는, 인도양의 열대성 폭풍) ;; 참고 ; hurricane, typhoon [본문으로]
7. drag into ; 2. (상관없는 일에) ~을 끌어들이다 [본문으로]
8. vortex ; (pl. vor・texes 또는 vor・ti・ces / -tIsiːz /) 2. (문예체) (비유적인 의미의) 소용돌이 ;; 미국식 [|vɔ:rteks] 영국식 [|vɔ:teks] [본문으로]
9. look back at ; ~을 되돌아보다 [본문으로]
10. eerily ; [부사] 무시무시하게, 무서워하여; 불가사의하게 ;; 미국·영국 [íərəli] [본문으로]
11. economic power ; 경제력 [본문으로]
12. stand still ; 1. 가만히 있다; 현상을 유지하다 [본문으로]
13. underdog ; [명사] (이기거나 성공할 가능성이 적은) 약자[약체] [본문으로]
14. escalate ; [동사] ~ (sth) (into sth) 확대[증가/악화]되다[시키다] [본문으로]
15. end in ; 1. ~으로 끝나다 ;; 2. (어떤 결과로) 끝나다 [본문으로]
16. stalemate ; 1. [U , C] [주로 단수로] 교착 상태 [본문으로]
17. mediocre ; [형용사] (못마땅함) 보통 밖에 안 되는, 썩 좋지는 않은 ;; 미국식 [|mi:di|oʊkər] 영국식 [|mi:di|əʊkə(r)] [본문으로]
18. aura ; (pl. ~s, -rae[-riː]) 1. (사람·물체에서 발산하는) 기운, 매력 ;; 2. [보통 sing.] 독특한 분위기 [본문으로]
19. intimidating ; ~ (for/to sb) (자신감이 없어지도록) 겁을 주는[겁나는] [본문으로]
20. stagnation ; [U] 굄, 침체, 정체; 부진, 불경기 ;; 동의어 ; depression [본문으로]
21. beckon ; 3. [자동사][V] (가능성이) 손짓을 하다[조짐을 보이다] [본문으로]
22. hit ; 10. REACH | [타동사][VN] (특정한 수준에) 이르다[달하다] [본문으로]
23. saturation point ; [U , sing.] 1. 포화 단계 [본문으로]
24. shop ; (-pp-) 1. BUY | [자동사][V] ~ (for sth) (가게에서 물건을) 사다, 쇼핑하다 [본문으로]
25. square feet ; [명사] 제곱 피트, 평방 피트 [본문으로]
26. square feet ; [명사] 제곱 피트, 평방 피트 [본문으로]
27. sink sth into sth ; (투자 등의 목적으로 많은 돈을) ~에 쏟아 붓다 [본문으로]
28. fixed-asset ; [명사] 고정자산 ;; 동의어 ; capital asset, fixed capital ;; 참고 ; current asset, floating asset [본문으로]
29. till ; [명사] (상점 계산대의) 돈 서랍; (캐비닛 속 등의) 귀중품 서랍, (책상 위의) 서류 정리함 [본문으로]
30. obsolete ; [형용사] 더 이상 쓸모가 없는, 한물간, 구식의 ;; 미국식 [|ɑ:bsə|li:t] 영국식 [|ɒbsəli:t] [본문으로]
31. school ; [동사] 1. YOURSELF/ANIMAL | ~ sb/yourself (in sth) (격식) 훈련[단련]시키다; (재귀대명사를 목적어로 써서) 익히다[기르다] [본문으로]
32. baked-beans ; [명사] 베이커트 빈즈(토마토소스에 넣어 삶은 콩. 통조림으로 나옴) [본문으로]
33. supplier ; [명사] 공급자, 공급 회사 [본문으로]
34. slick ; (slick・er , slick・est) 1. (때로 못마땅함) (겉만) 번드르르한[매끄러운] ;; 2. (때로 못마땅함) (진실성은 없어 보이면서) 구변 좋은, 말을 번지르르하게 하는 [본문으로]
35. dream sth up ; (비격식) (특히 말도 안 되는 내용을) 생각해 내다 [본문으로]
36. hope ; 2. [C] ~ (of/for sth) | ~ (for sb) | ~ (that…) | ~ (of doing sth) 바라는[기대하는] 것, 희망 (사항) [본문으로]
37. fighting chance ; (노력 여하로 얻을 수 있을지도 모를) 성공의 가능성, 희박한 가망; 성공할 수 있는 기회 ;; 성공할 가망성; 특히 열심히 노력하면 성공할 수 있다는 가망성 [본문으로]
38. penetration ; 3. (경제) 시장 획득, 시장 진출[침투] [본문으로]
39. perishable ; [형용사] 특히 식품이 잘 상하는[썩는] ;; 미국·영국 [|perɪʃəbl] [본문으로]
40. stuff ; 1. ~ A (with B) | ~ B (in, into, under, etc. A) (빽빽히) 채워 넣다[채우다] [본문으로]
41. provenance ; [U , C] (전문 용어) 기원, 출처, 유래 ;; 미국식 [|prɑ:vənəns] 영국식 [|prɒvənəns] [본문으로]
42. flexibility ; 3. 적응성, 융통성, 탄력성 [본문으로]
43. physical infrastructure ; 유형 기반시설 [본문으로]
44. form a partnership ; ~와 손을 잡다, 파트너십을 형성하다, 제휴를 맺다, 동업하다, 조합을 만들다 [본문으로]
45. front door ; [명사] (주택의) 현관[정문] [본문으로]
46. remotely ; 2. 멀리서, 원격으로 [본문으로]
47. acquire ; 1. <재산·권리 등을> 취득하다, 획득하다 [본문으로]
48. logistics ; pl. [단수·복수 취급] 3. (경영) 로지스틱스, 물류 관리 [본문으로]
49. legal name ; 상호(비지니스) [본문으로]
50. same-store sales ; [명사] 동일 매장 매출 [본문으로]
51. year on year ; (특히 수치·물가 등에 대해 말할 때 쓰여) 전년[연간] 대비 [본문으로]
52. store traffic ; 흐름상 "매장을 찾는 고객수" 정도의 의미 [본문으로]
53. in six years ; 6년 중에 [본문으로]
54. sale ; 2. [pl.] sales 매출(량) [본문으로]
55. an annual rate ; 연비, 년간 비율 [본문으로]
56. backhanded compliment ; What might at first sound like a compliment but could/should really be taken as an insult when considered in its entirety. [본문으로]
57. mid-sized ; [형용사] 보통[중간] 크기의 [본문으로]
58. 마침표(period)를 써야 할듯. [본문으로]
59. private label ; [명사] 자가 상표, 자사 브랜드. ;; private brand [본문으로]
60. sth of the[that] kind ; (앞에 말한 것과 같은) 그런 비슷한 것, 그와 같은 [본문으로]
61. spinach ; [U] 시금치 ;; 미국∙영국 [|spɪnɪtʃ ; |spɪnɪdƷ] [본문으로]
62. brand ; (brands[-z]) 1. …에 상표를 붙이다, …를 상표화하다; …에 등급을 매기다. [본문으로]
63. greenery ; 1. [U] [집합적] 푸른 잎[나무], 녹수(綠樹); (장식용) 푸른 가지. [본문으로]
64. lastly ; [부사] 1. 마지막으로, 끝으로(무엇을 열거하면서 마지막 요소 앞에 붙이는 말) [본문으로]
65. point to sth ; 2. ~을 시사하다[나타내다] [본문으로]
66. fusion ; 1. [U , sing.] 융합, 결합 [본문으로]
67. advance ; 2. DEVELOP | (지식・기술 등이) 증진되다[진전을 보다] [본문으로]
68. hypermarket ; [명사] (英) (교외에 있는) 대형 슈퍼마켓 ;; In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine shopping needs in one trip. [본문으로]
69. retailer ; [명사] 소매업자, 소매상; 소매업 [본문으로]
70. team up with ; …와 협동[협력]하다 [본문으로]
71. duel ; 2. (두 사람・집단 사이의) 다툼[싸움] [본문으로]
72. escalate into ; …으로 악화되다[확대하다]. [본문으로]
73. demographic ; [형용사] 인구 (통계)학의 [본문으로]
74. seize ; 5. ~ a chance, an opportunity, the initiative, etc. 기회, 기회, 주도권 등을 (붙)잡다 [본문으로]
75. well-to-do ; [형용사] 부유한, 잘사는 [본문으로]
76. population density ; 인구 밀도 [본문으로]
77. home delivery ; 집까지 배달해주는 서비스 [본문으로]
78. suburbia ; [U] [집합적] 교외 (거주자); (S-) London의 교외 (거주자); 교외의 생활[문화] 양식. ;; 미국식 [sə|bɜ:rbiə] 영국식 [sə|bɜ:biə] [본문으로]
79. either way ; (둘 중) 어느 쪽이든 ;; 동의어 ; one way or the other [본문으로]
80. margin ; 6. 〈상업〉 차익금, 마진, 판매 수익; 〈경제〉 (생산비를 보상하기에 족한) 한계 수익점. [본문으로]
81. squeeze ; 5. LIMIT MONEY | [타동사][VN] (재정적으로) 압박하다 [본문으로]
82. abandon ; [U] (격식) 방종, 자유분방 ;; 참고 ; gay adj. ; customary abandon ;; 흐름상 "아마존이 업계에서 주도권을 쥐기 위해 대규모의 자본을 투자하는 것" 을 의미 [본문으로]
83. free money ; 흐름상 "여윳돈, 충분한 양의 돈, 펑펑써도 될만큼의 자본" 정도의 의미 [본문으로]
84. make a profit (on) ; 이윤을 내다, …으로 이익을 얻다, 돈을 벌다 [본문으로]
85. asset base ; An asset base refers to the the underlying assets giving value to a company, investment or loan. The asset base is not fixed, it will appreciate or depreciate according to market forces. Lenders use physical assets as a guarantee that at least a portion of money lent can be recouped through the sale of the backed asset in the case that the loan itself cannot be repaid. [본문으로]
86. balance sheet ; [명사] (금융) 대차 대조표, 재정 증명서 [본문으로]
87. lean ; 1-a. <사람·동물이> 야윈, 마른 ;; 동의어 ; thin [본문으로]
88. formidable ; [형용사] 가공할, 어마어마한 ;; 미국식 [|fɔ:rmɪdəbl;fər|mɪdəbl] 영국식 [|fɔ:mɪdəbl;fə|mɪd-] [본문으로]
89. adversary ; [명사] pl. -ies (격식) (언쟁・전투에서) 상대방[적수] ;; 미국식 [|ӕdvərseri] 영국식 [|ӕdvəsəri] [본문으로]
90. disrupt ; [타동사][VN] 방해하다, 지장을 주다 [본문으로]
91. Corinthian ; 1. (고대 그리스) 코린트(Corinth)의, 코린트 시민과 같은; 사치하고 게으른; 우아한 ;; 미국∙영국 [kə|rɪnθiən] [본문으로]
92. child's play ; [관사없이] [구어] 아주 쉬운 일; 하찮은 일 ;; a very easy job or task [본문으로]
93. take on ; [동사] 떠맡다; 고용하다; 태우다; 떠들어대다, 흥분하다; 인기를 얻다; …와 대전[대결]하다. ;; 동의어 ; undertake, assume; employ, hire; carry on board; become excited; become popular; [본문으로]
94. fanatical ; [형용사] 광신[열광]적인 [본문으로]
95. annual sales ; [명사] 연간 매출액 [본문으로]
96. .. or so ; (수량을 나타내는 말 뒤에 쓰여) …가량[정도/쯤] [본문으로]
97. balloon ; 3. 급증[급상승]하다 [본문으로]
98. capital investment ; [명사] 자본 출자, 설비 투자. ;; 장기적인 이익을 기대하고 하는 투자, 비용 지출 ;; Capital investment refers to funds invested in a firm or enterprise for the purpose of furthering its business objectives. Capital investment may also refer to a firm's acquisition of capital assets or fixed assets such as manufacturing plants and machinery that is expected to be productive over many years. Sources of capital investment are manifold and can include equity investors, banks, financial institutions, venture capital and angel investors. [본문으로]
99. dizzying ; [형용사] 어지럽게 만드는, 어지러운, 아찔한 [본문으로]
100. as flat as pancake ; 완전히 납작한 ;; 흐름상 "큰 변화나 발전 없이 지속되다" 정도의 의미 [본문으로]
101. bake in[into] ; to include as an inseparable or permanent part: [본문으로]
102. slog ; [U , C] [주로 단수로] 고투(의 시간) [본문으로]