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Walmart practically destroyed Sears and transformed the grocery industry by deploying late 20th Century supply chain strategies. It is now competing for the 21st Century strategic high-ground.

On October 14 the Dow Jones Industrials fell over 150 points (and Albertson's held back from its IPO) as Walmart's stock price fell 10 percent and led the retail sector in reporting disappointing results and prospects.  The world's largest retailer has loss 30 percent market value since January.

According to the Wall Street Journal:

For months Wal-Mart executives have subtly made their case that investors should view the company as a growing e-commerce player that happens to be a behemoth. It has asked them to be patient as the retailer, which has half a trillion in annual sales, spends heavily to turn the giant ship around to better compete with Amazon.com Inc. and other faster-growing retailers like Kroger Co. and Costco Wholesale Corp.

Wal-Mart’s “biggest competitor is online and doesn’t care about profits. It’s hard,” said Mr. Yarbrough, referring to Amazon...

Wal-Mart is pitching its stores and massive network of distribution centers as a key strength in its battle with Amazon. In a PowerPoint presentation Wednesday, Mr. McMillon, the CEO, showed investors a slide with pictures of online retailers that have opened brick-and-mortar locations, including Warby Parker and Rent the Runway.

“Here is a key question: Will it be easier for an e-commerce company to build out a massive store network and create a customer-service culture at scale, or are we better able to add digital and supply-chain capabilities and leverage our existing stores?,” he said.

Personal story: Tuesday Amazon did not get me a promised one-day delivery (I am not a Prime member and had paid $60 for the fast service). I complained. Within six minutes I had a seemingly (not really) personalized response and a full refund. I've since received my product. That's a capability that will be very tough to equal. Stand by for a furious fight.