Digital Shift Gives Amazon 27% Edge in Discretionary Spend

A PYMNTS Intelligence report says Amazon is widening its edge in discretionary retail spending as consumers shift more of their budgets to essentials and services. The study finds retail’s share of total consumer spending fell to 30.8% in Q4 2025 from 34.3% three years earlier, while Amazon’s share of discretionary spending hit a record 26.5% in 2025. Amazon also reached 11.1% of total retail spending in Q4 2025, its highest on record. The report highlights strong gains in hobby goods, electronics, clothing and furniture, suggesting Amazon is benefiting from targeted nonessential spending. Walmart remains stronger in groceries and staples, with its share of food and beverage spending up 13% from 2019. Overall, the article frames retail as increasingly split between Amazon’s discretionary strength and Walmart’s necessity-driven role, a pattern that supports Amazon’s competitive positioning in consumer spending.