The battle between Amazon and Walmart in the grocery sector just intensified. And it could affect the convenience-store channel.
On Wednesday, Amazon announced that customers in more than 1,000 cities and towns can now order fresh groceries with same-day delivery, with plans to expand to more than 2,300 locations across the United States by the end of 2025.
In June, Amazon also said that more than 4,000 smaller communities and towns would have access to same-day and next-day delivery by the end of the year; however, the company did not clarify then whether grocery delivery would be included.
Customers can order produce, dairy, meat, seafood, baked goods and frozen foods at Amazon.com. For Prime members, same-day delivery is free for orders over $25 in most cities. Orders under the minimum can still be delivered for a $2.99 fee. Non-Prime customers can access the service for $12.99 per order.
Amazon tested same-day delivery for perishables in areas such as Phoenix, Orlando, Florida, and Kansas City, Missouri. It found that first-time Amazon grocery shoppers using same-day delivery returned to shop twice as often compared to those who did not buy fresh food.
According to Amazon, its fast delivery of groceries and household goods helped grow that segment of its online market at twice the rate of categories like electronics during the first quarter of 2025.
The Seattle-based company reported more than $100 billion in gross online grocery sales in first-quarter 2025, excluding sales from its physical stores, Whole Foods Market and Amazon Fresh.
“We’re continuously innovating to make grocery shopping simpler, faster and more affordable for our customers, especially Prime members,” said Doug Herrington, CEO of Worldwide Amazon Stores.
Strawberries, bananas, apples, limes and avocados are now among the top 10 grocery items most frequently purchased through same-day delivery.
Temperature-sensitive products are shipped in insulated bags, and each item goes through a six-point quality check before delivery.
Bentonville, Arkansas-based Walmart continues to hold an edge in grocery delivery. A late April survey by research firm PYMNTS Intelligence found that 29.9% of consumers made their most recent grocery purchase at Walmart, compared to just 1.3% who did so at Amazon.
The contrast was even more striking among those with only a Walmart+ subscription—57.5% reported making their most recent grocery purchase from Walmart, while none reported doing so from Amazon.
“Amazon’s strength lies in online discretionary retail, not groceries,” the PYMNTS report concluded.
Walmart recently stated it expects to deliver to 95% of U.S. households in under three hours. Meanwhile, Amazon said in a recent earnings call that it expanded its number of same-day delivery facilities by 60% in 2024 and plans to add more in 2025.
Amazon reorganized its corporate teams for its grocery and convenience-store brands and appointed Whole Foods Market CEO Jason Buechel to lead its Worldwide Grocery Stores Organization.
Amazon’s effort to attract more grocery shoppers was evident during its Prime Day event in July. Data from analytics firm Numerator showed that 15% of surveyed shoppers purchased groceries during the first two days of the four-day sale.
A version of this story first appeared inSupermarket News.
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