Walmart Inc. is intensifying its competition with e-commerce giant Amazon by announcing an ambitious expansion of its Walmart+ membership program, aiming to offer same-day delivery to 95% of the United States by the end of 2025. This strategic push, revealed alongside the company’s robust first-quarter fiscal 2026 earnings, underscores Walmart’s commitment to enhancing its omnichannel retail dominance and capturing a larger share of the digital shopping market.
In its Q1 FY26 earnings release, Walmart reported a 22% global eCommerce growth, with U.S. eCommerce sales up 21%, driven by strong performance in store-fulfilled pickup and delivery services. The company’s Walmart+ program, a cornerstone of its digital strategy, has been pivotal in this growth, with membership income surging double digits in the quarter. Leveraging its vast network of over 4,600 U.S. stores, Walmart is now doubling down on expedited delivery to make Walmart+ a formidable rival to Amazon Prime.
This comes as the two companies fight back and forth for online shopers as both sides copy eachother including in streaming where Walmart now offers free Pareamount+ with Walmart+ to take on Prime Video.
Walmart’s plan hinges on its unique advantage: proximity. With stores located within 10 miles of 90% of the U.S. population, Walmart can fulfill online orders directly from local stores, reducing delivery times and costs. The company’s Q1 results highlighted a 21% increase in U.S. eCommerce sales, with store-fulfilled pickup and delivery channels resonating strongly with customers. By year-end 2025, Walmart aims to extend same-day delivery—covering groceries, health and wellness products, and general merchandise—to nearly every corner of the country, including rural areas often underserved by competitors.
This aggressive expansion comes as Walmart+ continues to gain traction. The program, which offers benefits like free shipping, fuel discounts, and now enhanced delivery options, saw a 14.8% increase in membership income in Q1. Unlike Amazon Prime, which relies heavily on centralized fulfillment centers, Walmart+ leverages its store network to offer a hybrid model that blends in-store and online shopping. The company’s investment in technology, including AI-driven inventory management and route optimization, has improved eCommerce economics, contributing to a 7.0% rise in Walmart U.S. operating income.
Amazon, with its Prime membership boasting over 200 million global subscribers, remains the e-commerce leader, but Walmart is closing the gap. Analysts note that Walmart’s focus on grocery and health and wellness—categories where it reported strong Q1 comp sales growth of 4.5% in the U.S.—gives it an edge in everyday essentials, a segment where Amazon has struggled to dominate. Additionally, Walmart’s global advertising business, including a 31% increase in Walmart Connect sales, is enhancing its digital ecosystem, mirroring Amazon’s ad-driven revenue model.
“Walmart is playing to its strengths,” said retail analyst Sarah Coleman. “By combining its physical store network with a rapidly scaling eCommerce platform, Walmart+ is positioned to challenge Amazon in convenience and value, especially for budget-conscious shoppers.”
The company’s financial health supports this bold strategy. Q1 revenue reached $165.6 billion, up 2.5%, with a 12 basis point increase in gross margin rate, driven by Walmart U.S. Operating cash flow rose $1.2 billion to $5.4 billion, and the company raised $4 billion in long-term debt at favorable rates to fund its growth initiatives. Despite a 100 basis point headwind from lapping leap day, Walmart reiterated its FY26 outlook, projecting net sales growth of 3.0% to 4.0% in constant currency.
However, challenges remain. Currency fluctuations impacted Walmart International’s Q1 net sales by $2.4 billion, and strategic investments in markets like Flipkart and Walmex led to a 17.5% decline in international operating income. Scaling same-day delivery to 95% of the U.S. will also require significant logistical coordination and capital expenditure, estimated at 3.0% to 3.5% of net sales for FY26.
With this Walmart+ is hoping to redefine convenience for American shoppers, setting the stage for a heated battle with Amazon in the race for retail supremacy.
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