Source: PaxForex Premium Analytics Portal, Fundamental Insight

At first glance, it's not even a competition. Not only has the e-commerce behemoth Amazon's stock outperformed that of rival Walmart in recent years but as of last month -- as per the figures obtained by The New York Times -- people are now spending more on Amazon than on more traditional retailers. Obviously, the pandemic has been a real blessing for online retailer.

Nevertheless, if you think this is another obvious hint that nothing can get in the way of Amazon, you may be a little premature in reaching that summing-up. WMT has made a tiny dimple in Amazon Prime's reach by recording a decent increase on its own comparable subscription-based program, Walmart+.

This service may sway some current and potential Amazon customers toward the store-focused company. And the same thing could happen in the future.

The following figures should be taken with at least a grain of doubt since Walmart has neither proved nor disproved them. But Deutsche Bank's up-to-date estimation that 32 million U.S. households subscribe to Walmart+ is probably true. By comparison, Amazon Prime boasts more than 200 million subscribers, though that's a worldwide figure.

That's a good start for Walmart's subscription service, which launched just a year ago, and it doesn't even include access to a large library of digital entertainment content like Amazon Prime does. Rather, the key feature of Walmart+ is unlimited free delivery of online orders fulfilled at nearby stores - sometimes on the same day - at a price similar to Prime - $12.95 a month or $98 a year. For some consumers, that seems like enough, especially when the offer is supplemented by discounts on fuel.

The attraction of Walmart+ in a market where Amazon Prime also operates is clear: speed and convenience, as well as greater access to perishable products. Amazon can offer same-day delivery in some markets. But it can't offer same-day or next-day delivery of as many high-demand items as Walmart, thanks to Walmart's network of more than 5,000 U.S. stores as a means of fulfilling online orders.

A study commissioned by ACI Worldwide and PYMNTS.com quantifies this idea and shows that ease and convenience are the top concerns for 76% of current online grocery shoppers, outpacing the risks associated with COVID-19. COVID-19 worries only 59% of the 2,342 adults surveyed. Notably, 94% of respondents said they would shop in-store at least occasionally.

This detail gives Walmart a serious advantage over Amazon, which is not a major retailer of food or other consumer products.

There are a few additional details in the Deutsche Bank survey results that call into question how well Amazon will be able to draw and grasp Prime subscribers, who are known to make at least twice as many purchases on the site as non-Prime consumers.

One of these nuances is that 86% of Walmart+ subscribers say they are also Prime members.

On the face of it, this makes sense. Serious online shoppers probably find that paying for both similar services pays off in the long run. Both retailers offer many products, but neither offers everything a shopper might need. However, if money is tight, consumers can narrow these services down to one. Given the abundance of cheap on-demand/streaming services, Prime's content library has never been easier or more affordable to pass up.

Another notable nuance of the survey results is the type of consumers Walmart+ attracts. These consumers tend to be at the upper end of the income range. According to Deutsche Bank, 33% of current Walmart+ subscribers live in families with incomes over $100,000 a year. Only 28% of Prime subscribers can say the same.

Simply put, Walmart is gaining an audience that until now belonged almost exclusively to Amazon. Another nuance, such as access to on-demand content, could accelerate this penetration.

Last month, The Wall Street Journal reported that Amazon was considering creating its own full-format chain of stores capable of selling items such as apparel, household goods, and consumer electronics. The company itself neither confirmed nor denied The Journal's speculation, which was based on comments from unnamed "people familiar with the matter." But given Walmart+'s first apparent success, a large Walmart-like chain of stores may be more of a necessity than a desire for Amazon.

Amazon currently operates several dozen "convenience-type" stores, a few regular bookstores, and more so-called "4-star" stores, which feature some of the site's best-selling items.

Don't forget that Amazon is also the parent company of Whole Foods Market, which is a chain of more than 500 conventional grocery stores in North America.

However, that has yet to come close to Walmart's geographic reach. This major retailer has more than 5,000 stores operating as mini-warehouses, which it uses to satisfy consumers' desire for a combination of speed, convenience, and local in-store shopping.

The conclusion to this story is that Walmart won't be able to overpower Amazon, but it could definitely create tangible challenges for the company.

As long as the price is below 3387.00, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 3344.00
• Take Profit 1: 3304.00
• Take Profit 2: 3252.00

Alternative scenario:

If the level 3387.00 is broken-out, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 3387.00
• Take Profit 1: 3599.00
• Take Profit 2: 3648.00