Amazon’s “Digital Supercenter” Push Takes Aim at Walmart’s Grocery Lead
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- Amazon adds same day delivery for perishable groceries in 1,000 plus cities, targeting 2,300 by end of 2025.
- Prime orders over $25 deliver free in most cities; non members pay $12.99; items arrive with regular Amazon purchases in one cart.
- Company frames the effort as a “digital supercenter” built to be “actually super to shop at,” a clear swipe at Walmart.
- Context: Walmart leads U.S. digital grocery share at 31.6% vs Amazon’s 22.6% in 2025.
- Market reaction: grocery delivery and retail rivals slipped as the news hit.
Amazon is expanding its grocery footprint by adding same day delivery for perishables like produce, dairy, meat, seafood, bakery items, and frozen foods in more than 1,000 U.S. cities, with a plan to reach 2,300 by year end. The move elevates fresh food from niche programs to the core Amazon.com experience, and it lands with a simple hook for members: orders over $25 are free in most cities.
The company says customers can now check out groceries and general merchandise in one cart, getting both within hours through its temperature controlled logistics network. Internally and in press coverage, Amazon has positioned the strategy as building a “digital supercenter” that’s “actually super to shop at,” a not so subtle challenge to Walmart’s long running supercenter model. Pricing is straightforward: Prime enjoys the free threshold, while non members pay $12.99 per order.
Why it matters: groceries are a habitual purchase, and the leader gains more trips, more data, and more ad inventory. Walmart still owns digital grocery share in the U.S., so Amazon’s expansion is aimed squarely at closing that gap, while jolting competitors across delivery and retail. Early trading reflected the pressure, with several rivals dipping as the announcement circulated.
