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US Retail’s Big Three: The Amazon Effect
2026-05-13T08:02:18+00:00
REPDB7C2200_3336_4B22_BC22_0033369B220A
3695
193397
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Amazon remains a defining force shaping expectations for retail and ecommerce. Combining scale, innovation and operational excellence, the retail giant sets a pace few competitors can match. The company's US…
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Retail
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US Retail’s Big Three: The Amazon Effect

Amazon remains a defining force shaping expectations for retail and ecommerce. Combining scale, innovation and operational excellence, the retail giant sets a pace few competitors can match.

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for Amazon
    • Opportunities
    • Humanizing the Amazon experience
    • Graph 1: attitudes toward major retailers, Amazon-primary shoppers, 2026
    • Leverage service offerings to enhance loyalty
    • How competing brands can offset the Amazon effect
  2. THE MARKET

    • Amazon Snapshot – retailer performance
    • Amazon remains resilient, though sustained price pressure could intensify competition
    • Graph 2: select consumer behaviors, last two months, by household financial situation, 2026
    • Maintaining trust against a backdrop of regulatory scrutiny
    • Graph 3: select attitudes toward major retailers, by Amazon-primary shoppers, 2026
    • Technology is redefining the foundations of modern retail
    • Amazon broadens its tech investments beyond retail
    • An ageing population strengthens the case for Amazon’s healthcare expansion
    • Graph 4: population by age, 2020-30
    • Amazon performance
    • Amazon maintains consistent, year-over-year growth
    • Graph 5: Amazon’s global net sales, by country, at current prices, 2019-25
    • Service revenues expand as Amazon continues to diversify
    • Graph 6: Amazon’s global net sales, by retail channel, 2023 and 2025
  3. THE CONSUMER

    • Amazon shopper profile
    • Amazon is a retail staple
    • Who is Amazon’s primary shopper?
    • Prime drives loyalty to Amazon
    • Graph 7: Amazon Prime membership, by Amazon shoppers, 2026
    • Competitive dynamics
    • Amazon and Walmart are neck-and-neck
    • Graph 8: select retailers shopped most often, top three ranking, 2026
    • Competing retailers gain an edge with specific audiences
    • Amazon outperforms competitors across most metrics
    • Graph 9: retailer perceptions, 2026
    • Where Amazon truly differentiates
    • When it comes to major retailers, consumers are torn between low prices and personal values
    • Graph 10: select attitudes toward major retailers, by generation, 2026
    • What do shoppers prefer to buy from Amazon?
    • Consumers mainly shop Amazon for discretionary purchases
    • Graph 11: categories consumers prefer to shop from Amazon, 2026
    • Competitors top Amazon in essential categories
    • Graph 12: categories consumers prefer to shop at select retailers, 2026
    • Amazon’s primary shoppers show loyalty across categories
    • Graph 13: categories consumers prefer to shop at select retailers, by Amazon-primary shoppers, 2026
    • Consumer electronics are a differentiator for Amazon
    • Amazon is still betting on grocery
    • What do shoppers expect from Amazon?
    • Amazon-primary shoppers prioritize service and convenience
    • Graph 14: very important factors when choosing where to shop, by Amazon-primary shopper, 2026
    • Delivering on consumer expectations
    • Amazon must solidify its value with price-sensitive shoppers
    • Brick-and-mortar is still a white space for Amazon
  4. THE AMAZON EFFECT: AMAZON’S STRENGTHS & IMPACT AT RETAIL

    • Prime reinvented the retail loyalty program
    • Prime outshines competing loyalty programs
    • Graph 15: paid membership programs, 2026
    • Graph 16: attitudes toward paid membership, by program, 2026
    • Prime benefits add significant value and raise expectations for other retailers
    • Graph 17: attitudes toward Amazon, by Amazon-primary shoppers and Prime members, 2026
    • Layered rewards increase the value of Prime membership
    • Graph 18: benefits sought from Amazon Prime membership, 2026
    • Membership fees are the top barrier, but resistance is largely generational
    • Graph 19: barriers to Amazon Prime membership – fees, by generation, 2025
    • Prime Day events are a big draw
    • Amazon reshaped the promotional calendar
    • Amazon amplifies promotional strategy
    • AI will enable more targeted offer messaging
    • Raising the bar for quick and efficient commerce
    • Best-in-class fulfillment and delivery
    • Consumers are increasingly willing to pay for even faster delivery speeds
    • Graph 20: attitudes toward Amazon, by key demographics, 2026
    • Amazon’s operational innovations will raise expectations
    • Personalization and discovery
    • Amazon shoppers are mostly happy with personalization efforts
    • Shoppers are willing to share information for better personalization, but data privacy remains paramount
    • Graph 21: attitudes toward personalization, by key demographics, 2026
    • Amazon taps AI to deepen personalization
    • Retail innovation and tech-forward experiences
    • Innovation is Amazon’s strength, but shopping technology is still more of a “nice-to-have”
    • Amazon’s primary shoppers are more likely than the average consumer to experiment with shopping technology
    • Graph 22: interest in online shopping tools, by Amazon-primary shoppers, 2026
    • Older generations remain slower to adapt
    • Graph 23: interest in online shopping tools, by generation, 2026
    • The AI innovation race is underway, but widespread use will be gradual
    • Graph 24: comfort with Amazon’s ability to use AI, by key demographics, 2026
  5. APPENDIX

    • The market
    • Sales data and abbreviations
    • Amazon net US sales, at current prices, 2019-25
    • Amazon’s global net sales, by retail channel, 2023 and 2025
    • Amazon’s global net sales, by category, 2019-25
    • Amazon’s global net sales, by country, 2019-25
    • The consumer
    • Consumer research questions
    • Consumer research methodology – US
    • US population by age
    • US generation groups
    • Abbreviations
Download Report Summary

Amazon remains a defining force shaping expectations for retail and ecommerce. Combining scale, innovation and operational excellence, the retail giant sets a pace few competitors can match. The company’s US net sales have more than doubled since 2019, reaching $489.7bn in 2025. This growth continues to outpace the broader ecommerce sector, solidifying its position as a top retail destination.

With a large and loyal shopper base, 72% of consumers rank Amazon among their top-three retailers. A smaller but influential cohort of loyalists (39%) comprise the retailer’s primary shopper base, skewing younger, higher-income and heavily favoring Amazon Prime members.

Amazon’s strengths continue to be reliable convenience, delivery speed and innovation. Prime also remains a cornerstone of Amazon’s ecosystem, outperforming competing paid loyalty programs. At the same time, growing price sensitivity is placing renewed emphasis on Amazon’s price and promotion strategy – particularly as competition intensifies in essentials and grocery, where mass retailers retain strong footholds.

Looking ahead, Amazon is poised to remain the top destination for online shopping. As a leader in AI innovation, the online giant continues to elevate the standard for personalization and discovery, ushering in a new era for ecommerce.

This Report Looks at the Following Areas:

  • Factors impacting Amazon and other major retailers
  • The Amazon shopper profile
  • Competitive landscape and perceptions of the “Big Three Retailers”: Amazon, Walmart and Target
  • Factors influencing Amazon-primary Shoppers’ behaviors
  • Overview of Prime membership and key benefits
  • Shopping habits and preferences of Amazon-primary Shoppers
  • Analysis of Amazon’s key strengths and the impact on the retail landscape
  • How to further optimize the shopping experience at Amazon
  • Competitor strategies and opportunities
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