Walmart is facing increasing competition from online retailers like Amazon and needs to evolve its business model. It is testing several strategies to better integrate its online and physical retail operations, including allowing customers to buy online and pick up in stores, improving the in-store shopping experience, and using data to optimize inventory placement. Walmart is also focusing on cutting costs through operational efficiencies and investing heavily in ecommerce and technology to adapt to changing customer demands. However, online retail remains less profitable than physical stores, and Walmart must find the right balance to continue growing sales while maintaining profitability.