What's Happening?
Walmart's weeklong 'Deals' event in July 2025 significantly outperformed Amazon's Prime Day in terms of online sales growth. Spending on Walmart.com increased by 24% compared to the previous year, which is six times faster than the growth seen during Amazon's Prime Day. Additionally, Walmart's web traffic rose by 14%, and app usage grew by 22%, while Amazon's metrics remained flat. This shift indicates that loyal Amazon shoppers are being attracted to Walmart's discounts, with 8% of Amazon Prime Day customers also shopping online at Walmart, up from 5% in 2024. Walmart's competitive pricing and expanded marketplace offerings have contributed to this success.
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Why It's Important?
The success of Walmart's 'Deals' event highlights the growing competition in the e-commerce sector, particularly between Walmart and Amazon. Walmart's ability to lure Amazon's customers with attractive discounts and a wide range of products suggests a shift in consumer behavior, where shoppers are increasingly willing to compare prices across platforms. This trend could impact Amazon's market dominance, as Walmart continues to expand its marketplace and membership program, Walmart+. The increased competition may lead to better deals for consumers and force both companies to innovate further to retain customer loyalty.
What's Next?
Walmart's continued investment in its marketplace and membership program suggests it will keep challenging Amazon's e-commerce dominance. As both companies vie for consumer attention, shoppers can expect more competitive pricing and enhanced services. The ongoing trade war and economic uncertainty may further influence consumer spending habits, prompting retailers to offer more attractive deals. Analysts and investors will likely monitor these developments closely to gauge consumer sentiment and the potential impact on the retail sector.
