The story of American retail over the past quarter-century has largely been a two-horse race.
Walmart, the world’s largest retailer, defined the late 20th century with its efficiency, vast supercenters and low prices that remade communities and entire supply chains.
Amazon, arriving later, rewrote the rules of the 21st century with its frictionless eCommerce platform, logistics network and Prime-driven ecosystem that set consumer expectations around speed, convenience and digital integration.
Today, the momentum of that race is shifting decisively.
New data from PYMNTS Intelligence in the September 2025 report “Share of Wallet: Amazon vs. Walmart” shows that Amazon is not just holding its own against Walmart but pulling ahead at a pace that signals a structural reordering of U.S. retail.
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Amazon’s Growth Engine Revs Higher
The headline numbers tell a clear story.
In the second quarter of 2025, Amazon’s U.S. retail sales surged 9.5% year over year. That growth was not a product of inflationary distortions or one-off events. It came squarely from its core: a 9.6% gain in eCommerce, where the company continues to leverage its Prime membership base, third-party marketplace and logistics network. Even Whole Foods, long seen as a laggard within Amazon’s portfolio, delivered 7.5% growth.
Walmart, by contrast, posted just 4.6% growth in the same quarter. While that represented a modest rebound from the 3.2 % growth recorded in Q1, it was still less than half Amazon’s pace.
For a company of Walmart’s scale, incremental gains are harder to achieve, but the divergence suggests something deeper than simple size. Walmart’s once-reliable formula—lean inventory management, price leadership and an ever-expanding grocery footprint—appears increasingly insufficient in an economy where digital convenience and seamless consumer experiences define competitive advantage.
Amazon’s ability to outpace Walmart reflects the maturity of its ecosystem. Every new Prime subscription reinforces loyalty. Every additional seller broadens selection and drives competitive pricing. Every fulfillment center and last-mile innovation shrinks delivery times and raises customer expectations.
The cycle continues to accelerate, while Walmart’s efforts to adapt—such as its investments in retail media, eCommerce integrations, and health services—have not yet generated comparable momentum.
That hasn’t stopped the legacy retailer from trying, however. PYMNTS covered how Walmart is courting Europe for a U.S. marketplace push. At the same time, Walmart is embracing AI as it looks to optimize the shopper experience.
See also: Amazon Extends Gains While Walmart Holds Steady in Q2 Spending
The Battle Lines of the Future
Behind the numbers lies a divergence in innovation strategy. Amazon has continually reinvested in logistics infrastructure, data-driven personalization and customer-facing technologies. Its early bets on same-day delivery, cashierless stores and generative AI integration into shopping experiences may not always succeed at scale, but they signal a willingness to experiment that keeps consumers engaged and competitors off balance.
Walmart has made its own moves—acquiring Jet.com to jump-start eCommerce, building a retail media arm through the purchase of Vizio and investing in healthcare clinics. These initiatives demonstrate ambition but have yet to meaningfully shift consumer perception. Walmart is still seen primarily as a physical retailer with an online presence, rather than as an omnichannel ecosystem.
The grocery sector remains Walmart’s fortress, with a commanding 21% share compared with Amazon’s 2.7%. Yet even here, the gap is narrowing. Amazon’s investment in Whole Foods, Amazon Fresh and its expanding roster of local delivery options indicates that it views grocery not as a sideline but as a strategic priority. Given that grocery represents the largest consumer spending category, even small percentage gains translate into significant revenue growth and broader consumer entrenchment.
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The most telling measure of retail competition is not raw revenue but share of consumer wallet. It captures the deeper behavioral trend: where shoppers choose to allocate their discretionary and recurring spend. Here again, Amazon is moving decisively ahead.
In Q2 2025, Amazon’s share of U.S. consumer retail spending rose 7.6% year over year. That followed a more modest 2.7% gain in the first quarter, suggesting acceleration rather than a one-off spike. Over the past six years, Amazon has more than doubled its share, a trajectory that reflects its success in embedding itself into daily life. Whether it is routine household replenishment, discretionary electronics purchases, or increasingly even grocery orders, consumers are defaulting to Amazon as the starting point for shopping.
Walmart, on the other hand, has remained stuck at roughly 7 to 8% of U.S. retail wallet share over that same period, yet maintaining its position has required relentless price competition and continued capital deployment into supercenters, grocery delivery and omnichannel integration.
