Amazon and Walmart Grew the Crowd but Shrank the Basket

The article argues that Amazon’s Prime Day shift and its overlap with Walmart Deals expanded shopper participation but reduced per-customer spend, signaling weaker promotional economics despite higher reach. An estimated 244 million U.S. consumers, or 93% of adults, shopped at least one event, up from 135 million last year, yet average spending fell to $308 at Amazon from $360 and to $326 at Walmart from $484. The piece frames this as a shift from loyalty-driven retail to price arbitrage, with nearly three-quarters of participants comparing prices between the two retailers and 46% buying based on price alone. It also highlights AI assistants as a growing influence on product discovery and purchase decisions, potentially weakening retailer control over the path to purchase. Overall, the article suggests the retail battle is moving toward longer, more fragmented demand cycles, with revenue quality and customer loyalty under pressure.