Amazon’s physical grocery push deepens its fight against Walmart
Amazon is stepping up its push into physical grocery retail as it intensifies competition with Walmart, betting on large-format stores to complement its dominant e-commerce business. Analysts expect Amazon’s fourth-quarter physical store revenue, including Whole Foods, Amazon Fresh and Amazon Go, to rise to about $5.9 billion, reflecting a renewed focus on brick-and-mortar retail.
Amazon recently closed its Amazon Fresh and Amazon Go outlets, converting them into Whole Foods Market stores, signaling a strategic shift toward a stronger grocery identity. Its boldest move is the launch of a 225,000-square-foot mega-store near Chicago, designed to rival Walmart and Costco, while also functioning as a hub for same-day delivery.
The effort highlights Amazon’s challenge in matching Walmart’s vast physical footprint, which allows it to cut delivery costs and serve customers faster. While Amazon’s cloud division continues to drive growth, analysts say success in groceries could be key to boosting customer loyalty and long-term value.