All The Things I Think I Think About Retail Over The Last Quarter

Amazon vs. Walmart & Why the Box May Soon Be on the Other Porch

The following article was originally published via Placer.ai’s The Anchor on October 9, 2025 and has been republished for all our Omni Talk fans.

Hello Omni Talk Fans! It’s that time again. The time where I share my thoughts on everything I think I think about retail...at this very moment.

Over the first nine months of 2025, we have witnessed some pretty darn amazing things across the retail industry. We’ve witnessed traditional competitive boundaries blur as some large scale grocery players (at least, one that is one and one that wants to be one) venture into same-day delivery logistics, we’ve seen warehouse clubs reimagine convenience, and we have also had more than one retailer experiment with what the right size of its store footprint should be.

What emerges from this chaos is a revalidation of what omnichannel retailing really is. It is about the reimagining of how consumers shop, where they shop, and why they choose to shop one retailer over another.

Therefore, the following observations represent not just trends to watch, but strategic inflection points that could determine which retailers will have the greatest probability to thrive going forward in this beautiful and increasingly complex omnichannel world.

I Think I Think Walmart Is Out-Amazoning Amazon

In Q2 2025, Walmart delivered comparable sales growth of +4.5% (excluding fuel), driven largely by profitable e-commerce, and maintained stable store traffic. Monthly same-store visits, according to Placer.ai, were also remarkably steady between +0.7% and -1.8%, from May through August, amid industry-wide macroeconomic pressures.

Meanwhile, the other U.S. retailing behemoth, Amazon, began pushing (or is it forcing?) its way into grocery in August by way of same-day delivery. Walmart, on the flip side, and not to be outdone, also began putting significant resources behind its Walmart Fulfillment Services offering.

All told, it is a game of anything you can do, I can do better. It is one-upmanship at its finest.

The only question is – who stands the better chance of winning? Or at least drawing blood from the other?

From my vantage point, Walmart has a much better chance of holding onto its grocery reign because it already is a grocer, and quite a large one at that – drawing nearly half as many visits as the entire brick-and-mortar grocery category. Walmart’s 4,600+ store advantage is sizable. Amazon may take from others but the moat around Walmart is pretty large.

On the other hand, will Amazon keep a similar hold on its vendor logistics business?

If I were a betting man, Walmart has a better chance of making inroads on Amazon’s logistics revenue than Amazon has on hurting Walmart in grocery.

Said another way, I guess the box may soon be on the other porch, Amazon.

I Think I Think Size Really Doesn’t Matter

The size of one’s store base is dependent upon so many factors.

Location, the overall experience design, the ROI of “the box,” and more can all impact the size and shape of a retailer’s store base, and, more often than not, all of them actually work in concert together. Which is why anyone pontificating on the trend in the “size” of stores likely hasn’t put much thought into his or her argument.

Despite the recent run-up of retailers trying to get smaller (Macy’s, in particular, comes to mind), there is no tried-and-true rule that smaller stores will work or vice versa.

In some cases, like in dense or urban markets, smaller stores might work, while in others, if the approach is one of creating destination-type stores, like Hy-Vee or Buc-ees, larger stores might work, too.

My favorite example of someone “getting smaller” is Sprouts. As Sprouts CEO Jack Sinclair told me at Groceryshop, Sprouts realized its format had gotten too large, went back to its roots of differentiated products and great looking fresh produce in a smaller box, and has not looked back since.

At the end of the day – smaller, bigger, uncut – none of it matters as much as what your brand is trying to accomplish for your customers and what, in turn, resonates with them the most.

I Think I Think Superstores And Warehouse Clubs Will Pick Up Share Via More Short, Quick Visits

I think we can all agree that, generally speaking, Walmart and the warehouse clubs are noted for having great prices. On the flip side, what they haven’t been known as much for in the past is a quick and convenient shopping experience.

But that is about to change for two reasons.

The first is economics. There is always a trade-off between convenience and price. As budgets continue to get constrained, people will begin to trade off waiting in lines or navigating the dreaded Costco parking lot to save money.

The second is the evolution of these retailers as omnichannel retailers. For example, Walmart’s Chief E-Commerce Officer David Guggina told me recently that one-third of Walmart’s scheduled deliveries are delivered to Walmart customers in under three hours (see video of interview). This behavior itself gives rise to the theory that people are starting to leverage Walmart for quick trips.

Delivery is only one leg of the omnichannel stool, however.

The other two legs are buy online, pickup in-store (BOPIS) and the actual speed of the in-store experience itself. Much has been documented already about the rise of BOPIS following the pandemic, so I won’t belabor the point here because it, too, is likely driving the data below.

The other aspect is that places like Sam’s Club have done a masterful job of making their stores more convenient and time-efficient. Sam’s Club is leading the way on cashierless checkout in the club channel. Sam’s Club Scan & Go shoppers, which account for an amazing one-third of the Sam’s Club customer base, can simply walk through an AI-powered exit arch and then have a digital receipt sent to them upon exit.

Allow me to take a moment to put this last statement into perspective with a concrete example.

Pretend my wife calls me on my way home from work and asks me to pick up some milk. I have a choice: Do I go to the local grocer or do I go to Sam’s? If I decide to go local, I likely will end up paying more ,and I could also possibly have to wait in line to check out at either a manned till or a self-checkout machine. On the other hand, if I go to Sam’s Club, I can just walk in, scan the milk I want, pay at a paystation and then walk through the arch.

Which experience would you choose?

Enough said.

I Think I Think Good Merchandising Never Goes Out Of Style

The number one answer any retailer needs to answer in today’s omnichannel world is, “Why come to my store in the first place.”

And that answer begins and ends with good merchandising.

Take a look at some of the more creative merchandising efforts this year as depicted in the graph below:

What they all have in common is a “hook.” Someone got creative and went outside of the box to compel customers into their stores for new and exciting reasons. It is the definition of good merchandising.

Therefore, retailers, convenience store operators, and QSRs can never rest on their laurels. They constantly need to push the envelope to one-up the year before and the competition.

The best merchants get supercharged by the creative demands of this challenge. The worst merchants get their answers from interpolating spreadsheets and making decisions solely off of last year’s data.

I Think I Think Grocers Have An Untapped Merchandising Opportunity

Speaking of merchandising, the convergence of technology and the increasing tendency of consumers to use supermarkets as their mid-day lunch or snack source versus QSRs could inspire a unique opportunity for those grocers adventurous enough to seize it.

I have long been a proponent of electronic shelf labels. The use cases in support of them are almost endless at this point. One of my favorite use cases is the ability to run intra-day promotions, an idea that is virtually impossible with paper price tags, and one that also gets supercharged when the component of in-store digital media screens gets added to the equation as well.

Imagine a grocer who uses electronic shelf labels and then starts running unique daily promotions at lunch time. These promotions could be done on ANYTHING:

• Too many chubs of salami? Run a discount.

• Want your customer to pick up a heat-and-eat meal for dinner later? Run a promo on chicken parm for a couple of hours.

• Want to sell more high-margin vaccines out of your pharmacy? Run a two-hour takeover of digital signage and in-store audio.

You get the idea. It is the Venn diagram of retail media and in-store execution at its finest.

And I Think I Think These Are The Implications Of All The Above

The convergence of these above trends signals a tried-and-true retail axiom, i.e. that success is determined not by what you sell per se, but by how you can integrate convenience, value, and your brand (a better word choice than experience) across every touchpoint.

And this axiom will manifest itself in a number of self-affirming, yet sizable ways.

First, as the Walmart/Amazon tête-à-tête illustrates, a single channel advantage will become almost impossible to defend. Retailers need to decide in which channels they want to speak to their customers or risk being outflanked by competitors who will. This creates both vulnerability for established players and opportunities for agile newcomers who can build omnichannel capabilities from the ground up.

Second, technology will play an even bigger role as the industry equalizer. The Sam’s Club scan-and-go example is the perfect encapsulation of this idea. It shows how technology can completely flip traditional competitive dynamics. Warehouse clubs, once seen as inconvenient despite their pricing advantages, are at the tipping point of becoming more convenient (and value-laden) than traditional grocers. Retailers who boldly invest in finding new ways to use technology to flip their positioning on the convenience-value-brand spectrum stand to capture disproportionate market share, regardless of their historical positioning.

Third, merchandising is and will forever be the epicenter of retailing. As physical store differentiation becomes harder to achieve, creative merchandising becomes the primary weapon for driving foot traffic and brand loyalty. Retailers who cannot consistently surprise and delight customers with consistent in-stocks, innovative in-store displays, exciting product collaborations, and limited-time offerings will find themselves relegated to utility shopping only, which is about as big as a “Danger Will Robinson” position as there is.

As I look back on 2025, Walmart, hands down, is “winning.” Sure, it has scale. It is the biggest retailer going. But scale isn’t why Walmart is on the hot streak that it is. The real secret to Walmart’s success has been its incredible speed of adaptation, rather than the scale of its operation. Its scale only enhances the impact of successful adaptation.

That is the real punchline to the joke.

What got you here won’t get you there. The task at hand is to transform fast enough to remain relevant in a world where the rules of engagement are being rewritten all the time, by competitors both large and small.

Be careful out there,

— Chris, Anne, and the Omni Talk team

P.S. For more data-driven insights, visit placer.ai/anchor.