Walmart and Amazon Take Grocery Battle to Digital Checkout and Wallet Share

Competition in the U.S. grocery market is expanding beyond store footprints to digital checkout, customer loyalty and payment wallets. Walmart commands everyday spending through its nationwide store network and competitive food prices. Amazon is combining Prime, Whole Foods Market and online delivery to pursue the same households focused on convenience and price.

In the third quarter of 2025, Walmart accounted for about 20% of U.S. grocery spending and remained the market leader. Amazon has recently expanded its online grocery business, using digital checkout technology at scale and the Prime ecosystem to increase purchase frequency. The contest is increasingly centered on member retention, control of the checkout gateway and share of consumers’ wallets.