The Friday Checkout: Amazon Says It’s the Second-Largest U.S. Grocer — Stores (Mostly) Not Required

Why It Matters

Amazon’s ascent reshapes the competitive landscape, forcing traditional grocers to accelerate digital and fulfillment strategies. The scale of its online grocery platform signals a long‑term shift toward omnichannel shopping in the U.S. market.

Key Takeaways

• Amazon's grocery sales topped $150 B in 2025.
• Whole Foods will add ~100 new stores in coming years.
• Perishable sales grew over 40x year‑over‑year via same‑day delivery.
• Amazon Fresh and Go deemed unviable brick‑and‑mortar models.
• Amazon now ranks second‑largest U.S. grocer behind Walmart.

Pulse Analysis

Amazon’s claim of second‑place status in U.S. grocery sales underscores how a primarily digital retailer can rival legacy chains. The $150 billion figure, driven by Whole Foods and a robust online platform, eclipses many traditional grocers that rely on dense brick‑and‑mortar networks. By leveraging its logistics backbone, Amazon delivers perishables within hours, a capability that expands basket sizes and captures high‑margin categories. This model also reduces the need for thousands of physical stores, allowing Amazon to compete on convenience and price without the overhead of a traditional supermarket footprint.

The surge in perishable sales—over 40‑fold year‑over‑year—highlights the effectiveness of Amazon’s same‑day delivery infrastructure. Customers ordering fresh items tend to add more products, boosting average order value and reinforcing the platform’s full‑basket ambition. While Amazon Fresh and Amazon Go have struggled to find a sustainable store format, the company’s commitment to expanding Whole Foods by roughly 100 locations signals a hybrid strategy: a curated physical presence complemented by a dominant online experience. This approach mitigates the risk of costly store rollouts while still offering a tangible brand touchpoint for shoppers who value in‑store experiences.

For the broader grocery sector, Amazon’s momentum forces incumbents like Walmart, Albertsons, and Kroger to double down on digital initiatives, curbside pickup, and private‑label offerings. The competitive pressure accelerates industry consolidation and technology adoption, from AI‑driven inventory to autonomous delivery. Investors will watch Amazon’s ability to translate online growth into sustained market share, especially as it balances profitability with aggressive expansion. If Amazon continues to refine its omnichannel model, the definition of a "grocery store" could evolve into a seamless blend of physical aisles and instant‑fulfillment hubs.