A proposed Amazon facility in Orland Park, Illinois, aims to span 229,000 square feet, resembling a traditional Walmart superstore but incorporating distinct Amazon features. This new concept allows customers to order products through an app or kiosk for in-store fulfillment, enhancing convenience for shoppers.
Amazon's venture into this physical retail space underscores its ongoing challenge to Walmart's dominance. Analysts from Consumer Intelligence Research Partners noted that while e-commerce is a stronghold for Amazon, online sales represent less than 20% of total U.S. retail spending, indicating significant room for growth.
The company has previously explored various retail formats and acquired Whole Foods for $13.7 billion in 2017. Currently, Amazon serves over 150 million grocery shoppers in the U.S., contributing to more than $100 billion in grocery sales in 2024.
Despite Amazon's strengths, the data shows that 93% of its customers also shop at Walmart. This new superstore concept appears to be a strategic move to build a physical presence that competes directly with Walmart's scale and utility.