BOSTON — The U.S. retail landscape is undergoing a structural shift as consumers increasingly divide their spending between necessities and discretionary purchases, reshaping how major retailers compete, according to a new report from PYMNTS Intelligence.
The findings could also have implications for how credit union members use their cards and structure their own payments.
The company’s March edition of the PYMNTS Intelligence “Share of Wallet: Amazon vs. Walmart” report describes what it calls a “consumer wallet reset,” in which shoppers are no longer behaving as a single, unified decision-maker. Instead, consumers are splitting their purchasing behavior between what the report characterizes as a disciplined, needs-focused mindset and a more aspirational, discretionary one.
That shift is leading to a bifurcation in retail spending, with essentials and nonessential purchases increasingly flowing to different players, according to PYMNTS Intelligence.
The report found consumers are not choosing between Amazon and Walmart, but are instead relying on both for distinct purposes. Amazon has emerged as the dominant destination for discretionary spending, driven by features such as one-click checkout, personalized recommendations and fast delivery, the report said.
Additional Findings
By the fourth quarter of 2025, Amazon captured a record 11.1% of total U.S. retail spending, with particularly strong share in hobby goods, electronics, apparel and furniture, according to PYMNTS Intelligence.
However, the report said Amazon’s reach is more limited in grocery, where its share stands at about 3%, reflecting the category’s emphasis on price sensitivity, frequency and perishability.
That gap has helped reinforce Walmart’s role as a leader in essential spending. The retailer’s share of overall retail spending has remained relatively steady over time, underscoring its position as a primary destination for everyday goods, the report said.
Rather than a zero-sum competition, the report concludes the evolving dynamic represents a segmentation of dominance, as retailers increasingly capture different portions of the consumer wallet.
