Amazon’s stock took a hit following its latest earnings report on March 15, 2026, as the market seems to prioritize the company’s advancements in artificial intelligence over its retail e-commerce performance. Despite e-commerce remaining Amazon’s largest business segment, the company commands nearly 40% of the U.S. e-commerce market, facing little significant competition as other retailers bolster their digital sales efforts.
In contrast, Walmart has emerged as the world’s second-largest retailer, benefiting from consistent growth and increasing digital operations. The company boasts the largest physical store footprint in the United States. In its fiscal fourth quarter ending in late January 2026, e-commerce sales surged 24% year-over-year, while U.S. e-commerce sales rose by 27%. Walmart’s membership program, Walmart+, is also gaining traction, with membership income up 15% year-over-year in the same period. This extensive store network has enabled Walmart to enhance its fast delivery services, which experienced a remarkable 60% year-over-year increase.
Costco, on the other hand, has regained positive market sentiment after it reported strong results for its fiscal second quarter ending mid-February 2026. The retailer posted a sales growth of 9.1% year-over-year, with comparable sales increasing by 7.4%. E-commerce has been a critical growth area for Costco, which labels this segment “digitally enabled sales.” In this quarter, these sales witnessed a nearly 23% year-over-year increase. Online engagement metrics also indicated a positive trend, with app visits up 63%, site traffic rising by 35%, and the average order value increasing by 15%.
The latest performance data highlights the contrasting market strategies among these major players. While Amazon is shifting some of its focus toward artificial intelligence, Walmart and Costco are capitalizing on their extensive physical operations and e-commerce growth to drive customer engagement and sales. This divergence underscores the evolving landscape of retail, where digital capabilities increasingly influence consumer choices.
As the retail market continues to adapt to changing consumer preferences and technological advancements, companies like Amazon, Walmart, and Costco will likely refine their strategies to maintain competitive advantages. The emphasis on AI and digital sales will be paramount in shaping the future of retail, as these giants navigate the challenges posed by an ever-evolving marketplace.
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