Forrester's 2026 US Retail Competition Tracker highlights that Amazon and Walmart captured nearly 70% of retail sales growth among top US retailers in 2025. The report emphasizes that digital ecosystems, advertising, and membership-based revenue models are critical for scaling and maintaining competitive advantage in the current retail landscape.
The dominance of these two giants signals a shift where retail success is no longer just about product sales, but about high-margin service ecosystems. Amazon uses AWS profits to subsidize aggressive logistics and AI investments that pure-play retailers cannot match. Meanwhile, Walmart is using its physical footprint to scale e-commerce, remodeling 650 stores to serve as fulfillment hubs. For the broader streaming and digital media industry, this concentration of power reinforces the necessity of integrated membership models like Amazon Prime and Walmart+ to maintain customer lock-in. Watch for whether mid-tier retailers can successfully launch independent marketplaces or advertising networks to offset shrinking traditional margins.
As Amazon ad spend growth continues to climb, the company is increasingly positioning its retail platform as a primary destination for CTV and performance marketing budgets. Furthermore, Walmart Connect expands CTV measurement and targeting capabilities to bridge the gap between physical retail data and linear television audiences.
Amazon and Walmart captured nearly 70% of all sales gains among the top 10 US retailers in 2025. Amazon has officially overtaken Walmart in total revenue, fueled by a services-heavy business model. This shift highlights how high-margin ecosystems and integrated membership programs are now essential for maintaining retail dominance.
Amazon and Walmart accounted for nearly 70% of all sales gains among the top 10 US retailers in 2025.
Services, including advertising and AWS, now comprise 58% of Amazon's total revenue, a significant increase from 27% in 2015.
Walmart is leveraging its physical footprint by remodeling 650 stores to function as fulfillment hubs for its e-commerce operations.
Amazon Prime maintains over 200 million global members who prioritize free shipping for their online purchases.
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