Wal-Mart eyes Amazon in potentially costly e-commerce battle

CLASH OF THE TITANS: As Wal-Mart prepares to test a free shipping programme aimed at undercutting Amazon on price, the prospect of competing with a rival that spends heavily on investments has raised some concerns.

Wal-Mart Stores Inc said that it would take a different approach to online growth than Amazon.com Inc by using its large network of stores as distribution points. 

But if the world's largest bricks-and-mortar retailer is serious about competing more directly with Amazon – as it has suggested by testing a free shipping club – then it may have to spend well beyond a previously announced investment target on big distribution centres and other costs for its plan.