1. Unmatched Physical Infrastructure for Rapid Fulfillment
Walmart’s network of over 4,600 U.S. stores serves as de facto micro-fulfillment centers, allowing it to deliver groceries to 95% of American households in under three hours. This store-as-hub model leverages proximity—Walmart has stores or distribution centers within 10 miles of 90% of the population—enabling same-day or next-day delivery without relying solely on massive centralized warehouses like Amazon. In contrast, while Amazon has expanded same-day grocery delivery to over 2,300 cities by late 2025, its Whole Foods integration and broader logistics focus on non-perishables have limited its grocery-specific speed in suburban and rural areas where Walmart thrives.
2. Higher Average Order Values and Comprehensive Shopping
Shoppers turn to Walmart for full grocery hauls, driving up average order values and repeat business. Consumers view Walmart as a one-stop destination for staples, fresh produce, and household essentials, leading to more substantial baskets than Amazon’s tendency toward impulse or add-on purchases (e.g., snacks or paper goods). This has helped Walmart maintain an 18% overall grocery market share, far outpacing Amazon’s 2.4% through Whole Foods.
3. Superior Data and Personalization
As a first-party retailer, Walmart owns rich consumer data from its 150 million weekly in-store and online shoppers, enabling hyper-targeted promotions, sponsored search ads, and personalized recommendations at the point of intent. This closed-loop system boosts conversion rates and customer loyalty, giving brands and shoppers alike a seamless experience. Amazon excels in algorithmic recommendations overall, but its third-party marketplace model dilutes grocery-specific insights compared to Walmart’s integrated approach.
4. Customer Loyalty Programs and Omnichannel Seamlessness
Walmart+ membership (with free delivery on orders over $35 and 5% cash-back via Visa cards) has accelerated adoption, blending online orders with in-store pickup for convenience. This omnichannel edge—where 70% of Walmart’s digital grocery orders start in-app but tie back to physical visits—fosters habit formation. Amazon Prime offers similar perks, but Walmart’s program is tailored more aggressively to grocery, contributing to its market share averaging over 24% year-to-date (peaking at 28.3% in late 2024).
5. Profitability and Scale in a Maturing Market
Walmart’s early investments in grocery e-commerce have yielded profitable pickup and delivery operations, allowing aggressive expansion without the margin pressures Amazon faces from Whole Foods’ premium pricing and integration challenges. With the post-pandemic digital grocery boom moderating, Walmart’s scale insulates it against slowdowns, while Amazon pours billions into rural expansions that haven’t yet dented Walmart’s rural stronghold.
In short, Walmart’s hybrid model—rooted in physical ubiquity and grocery expertise—has turned what was once Amazon’s perceived e-commerce moat into a vulnerability in perishables and bulk buys. Amazon remains a formidable challenger with its tech investments, but as of late 2025, Walmart’s execution has solidified its lead.