April 2026
PYMNTS Data Book

Amazon’s Discretionary Surge Is Redrawing the Retail Battle

Retail is taking a smaller share of consumer spending, but the battle for those dollars is intensifying. This report shows how Amazon and Walmart are pulling farther apart, with Amazon reaching a record 11.1% of total U.S. retail spending in Q4 2025 while Walmart held steady as a go-to destination for essentials.

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    Retail is accounting for a smaller share of total consumer spending compared to recent years, but competition within that shrinking pie is becoming more intense. As Amazon and Walmart compete for a larger piece of consumer wallets, their strategies are increasingly diverging. Amazon continues to capture a growing share of discretionary spending, particularly during peak shopping periods like the holiday season, while Walmart remains more firmly rooted in everyday essentials. This split is reshaping how households decide to allocate their spending between the two retail giants, reflecting broader shifts in consumer priorities and economic pressures. This PYMNTS Intelligence data book highlights five key takeaways from our latest data on consumer spending and retail performance.

    Walmart and Amazon’s Retail Race

    Retail Cooling

    Retail remains the largest category of consumer spending overall, but its share declined to approximately 30.8% in Q4 2025. This marks a noticeable drop from the elevated levels seen during the COVID-19 pandemic, as consumers redirect their spending toward services and other categories.

    Retail Spending Shift

    Within retail, spending patterns are evolving. Discretionary categories such as health products, electronics and apparel are gaining a larger share, while traditionally strong sectors like gasoline and auto sales are losing ground.

    Amazon’s Peak

    Amazon reached a new milestone by capturing 11.1% of total U.S. retail spending in Q4 2025. This growth was largely fueled by robust holiday shopping demand and the giant retailer’s strength in discretionary categories.

    Walmart’s Stability

    Walmart’s quarterly share has remained relatively steady, hovering between 7% and 8%, with minimal seasonal fluctuation. This consistency reflects its focus on essential goods and everyday low prices.

    The Retail Spending Divide

    Amazon now commands roughly 27% of discretionary spending, while Walmart’s share has declined to about 5% to 6%, underscoring a clear divide in consumer behavior.

    Methodology

    “Amazon’s Discretionary Surge Is Redrawing the Retail Battle” is based on findings from the March 2026 edition of the PYMNTS Intelligence exclusive Share of Wallet: Amazon vs. Walmart series. The analysis is based on PYMNTS Intelligence estimates using Amazon and Walmart earnings reports, along with data from the U.S. Census Bureau and Bureau of Economic Analysis. It examines retail and consumer spending trends through Q4 2025. This data book focuses on five key insights from the report.

    About

    PYMNTS INTELLIGENCE

    PYMNTS Intelligence is a leading global data and analytics platform that uses proprietary data and methods to provide actionable insights on what’s now and what’s next in payments, commerce and the digital economy. Its team of data scientists includes leading economists, econometricians, survey experts, financial analysts and marketing scientists with deep experience in the application of data to the issues that define the future of the digital transformation of the global economy. This multi-lingual team has conducted original data collection and analysis in more than three dozen global markets for some of the world’s leading publicly traded and privately held firms.

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