Walmart (WMT) is betting big it can win over affluent shoppers, outpace Amazon (AMZN), and gain favor with President Donald Trump.

To do this, CEO Doug McMillon is focused on the balancing act of attracting wealthier customers while staying true to the company’s core commitment to affordability – an approach that includes learning from the competition.

“We’re seeing the very best competitors and studying what they do,” McMillon said in an interview on Bloomberg’s Big Take podcast. “Then take the best of what they do and apply it if you can.”

While Walmart’s strategy has worked well, it may need some reevaluation, as Amazon now has the crown in revenue. McMillon, who started at Walmart at 17, says the company’s latest attempt to challenge its e-commerce rival includes hiring talent from Amazon and Google (GOOGL).

Walmart had an impressive 2024, delivering its best performance since 1998, with shares rising by 72%. A key driver was affluent shoppers earning over $100,000 annually, who contributed to 75% of Walmart’s market share. However, despite the gangbusters year, McMillon cautioned that 2025 may not replicate such growth. The company lowered its forecast, and its stock dipped in response.

Factors like Trump’s tariffs and inflation are expected to raise prices, making it harder for retailers to maintain margins. But McMillon remains confident, pointing out that Walmart has faced such challenges and is well-equipped to manage them.

McMillon’s relationship with Trump has also evolved. During Trump’s first term, McMillon criticized the president’s handling of the Charlottesville protests in 2017 and opposed an Arkansas bill restricting LGBT rights.

Following a meeting with Trump at Mar-a-Lago in January, McMillon told Bloomberg that he assured the president Walmart is “here long term,” emphasizing the company’s role as a large employer serving millions of people. The company serves roughly 270 million customers each week.

“We want the country to thrive,” McMillon told Trump. “How can we be helpful?”

Walmart, the largest private employer in the U.S. with 2.1 million global workers, has managed to keep investors optimistic. But as it continues to play catch-up in e-commerce, Walmart – having launched its online marketplace in 2000 – is projected to reach $115 billion in online sales, compared to Amazon’s expected $487 billion.

Arkansas-based Walmart is already making strategic moves to compete. It is expanding its product offerings, including its luxury bag-inspired “Wirkin” purse and new clothing lines, to compete with fast-fashion giants like Temu. Gone are the days when Walmart refused to ship items like bananas or milk, McMillon said.

In November, Walmart also scaled back some of its diversity, equity, and inclusion (DEI) initiatives, including halting the consideration of race and gender in supplier contract awards and discontinuing the collection of demographic data for financing eligibility.

At the time, Walmart described itself as being on a “journey,” acknowledging that while it’s not “perfect,” the company aims to make decisions that foster a sense of belonging.

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