How Amazon wins discretionary spend and Walmart holds necessities

The battle for consumer spending continues. Over the past few years, shoppers have been tightening their belts, spending less on retail shopping and more on essentials like rent and healthcare. That shift spells sobering news for retail giants Amazon and Walmart. With the overall retail pie getting smaller, the scrum for each slice is heating up.
Nothing shows this battle more clearly than the holiday season. The last three months of 2025 accounted for about 27% of all retail sales for the year. Amazon, for its part, continued to gain share from October through December, achieving record-breaking results. But the boost isn’t coming from essentials. Instead, categories like clothing and electronics are fueling its gains.