Wal-Mart Stores Inc (NYSE:WMT) is one of the retail giants that have continued to attract millions of shoppers. However Amazon.com, Inc. (NASDAQ:AMZN) has also been in the race and after several attempts of getting into the $800 billion grocery industry, there seems to be some breakthrough. From the many shoppers, the e-commerce giant has only 4.5% market share of online grocery.

Nonetheless, there is some sort of a win given the unveiling of two grocery pickup spots in Seattle, Amazon’s home turf. The launch of the grocery retail known as AmazonFresh Pickup welcomes the idea of having groceries delivered to customers’ doorsteps.

But will Amazon unseat Wal-Mart from the $600 billion U.S. grocery market?

According to analysts at Cowen & Co, the U.S. grocery sector could turn out to be Amazon’s biggest potential source of revenue. However, it will also be a hard nut to crack given the presence of Wal-Mart, which is the world’s largest retailer. The competition will be tight for sure and after many failed attempts, Amazon CEO Jeff Bezos knows all too well that they cannot win alone.

Sodo and Ballard neighborhoods will be the first locations where AmazonFresh Pickup will set up business. In fact, they have been the center of speculation for months. However, the locations are yet to open to the general public and they do, they will exclusively be available to Amazon’s Prime loyalty program.

The stiff competition of the so-called “click and collect” grocery shopping platform

Amazon is majorly known for its standard formula of shipping products in boxes and right from its jam-packed warehouses. However, it is not clear about its ambitions of getting into grocery concept. It is also part of a wider push of getting into the physical world.

Nevertheless, the e-commerce may not be the first to introduce the concept even though it has been well embraced. Several other supermarket chains are already offering the service.

It is likely that Amazon will be putting up other stores as it endeavors to grow. An analyst at L2, a business intelligence consultancy, Cooper Smith says, “I wouldn’t be surprised if five years from now you have Amazon stores along the major metropolitan areas along the coasts.”

In the meantime, Amazons stock was trading $856.00 witnessing an increase of $9.18 or 1.08%