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US Retail’s Big Three: The Amazon Effect
2026-05-13T08:02:18+00:00
REPDB7C2200_3336_4B22_BC22_0033369B220A
4995
193397
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Report
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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…
US
Retail
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US Retail’s Big Three: The Amazon Effect

"In a competitive landscape where shoppers are loyal to price, the next phase will be defined by how well Amazon and other major retailers deliver clearer value, stronger trust and more meaningful differentiation."

Brittany Steiger, Principal Analyst - Retail & eCommerce

Brittany Steiger, Principal Analyst - Retail & eCommerce

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
Collapse All
  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

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