Amazon is continuing its quest to be the world’s go-to source for everything, and its latest move is one that customers will love, and Walmart will hate.
Walmart is currently the top grocery retailer as measured by dollar share, according to data from Numerator. The megastore has held that title since 2019, and as of the first quarter of 2025, 21.2% of the grocery market share belonged to Walmart.
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That’s a massive share of the market, especially when you consider that Kroger, Co. (which has the second-highest market share) has just 8.9%, and Costco (the third-highest) has just 8.5%.
Amazon doesn’t even have a place in the top five, something it’s undeniably not very happy about.
It has big plans to change that, though.
A major announcement this week shows Amazon is moving aggressively to knock Walmart off its grocery throne and ensure that it provides the bulk of items going into the cabinets and pantries of consumers everywhere.
Image source: Fassbender/AFP via Getty Images
Amazon makes a huge announcement about grocery delivery service
Amazon’s big announcement about its grocery services came on Wednesday, August 13, 2025, when the company announced a major expansion of the availability of its same-day grocery delivery service.
According to Amazon, customers in over 1,000 different towns and cities will now have access to fresh grocery delivery with same-day delivery orders.
This means perishable grocery items can now get to your door direct from Amazon very quickly, with the list of products now eligible for same-day delivery, including:
- Dairy
- Produce
- Meat
- Baked goods
- Seafoods
- Frozen foods
This new announcement is not the end of Amazon’s efforts to dethrone Walmart and take the title of grocery top seller, either.
Amazon has made clear that it has plans to provide same-day grocery delivery service to over 2,300 new locations by the end of the year.
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Amazon wants to make grocery delivery accessible (and keep customers out of Walmart)
Amazon has made clear that its focus is on making it quick and convenient for customers to get everything they want from the e-commerce giant—instead of having to go to stores like Walmart in person to buy groceries.
“By introducing fresh groceries into our Same-Day Delivery service, we’re creating a quick and easy experience for customers. They can order milk alongside electronics; oranges, apples, and potatoes with a mystery novel; and frozen pizza at the same time as tools for their next home improvement project—and check out with one cart and have everything delivered to their doorstep within hours.”
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If customers can now get their groceries from Amazon alongside everything else they could possibly want, the idea is that there is less and less reason to shop anywhere else. Amazon will become the default.
This also provides more incentive for customers to sign up for Prime, as same-day delivery is free in most cities with orders of $25 or more. This will now include grocery delivery, and, if an order is under $25, same-day delivery is still an option for a pretty low fee of $2.99.
While Amazon’s expansion will likely have the biggest impact on Walmart, given Walmart’s current grocery domination, it could also affect smaller regional grocers.
More Retail:
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- Top investor takes firm stance on troubled retail brand
- Walmart and Costco making major change affecting all customers
For now, though, the biggest immediate impact for Amazon customers is that they can add that carton of milk or their little ice cream snack to their order and be enjoying it within hours – and that’s a convenience many will appreciate.
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