Amazon Launches New Store Concept to Compete with Walmart

Amazon plans to open a 225,000-square-foot store in Orland Park, Illinois, offering groceries and general merchandise to compete with Walmart's supercenter model.

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Deborah Wando
Deborah Wandohttps://www.deborahwando.co.ke
Deborah Wando is a lifestyle blogger who loves sharing fun ideas for everyday life.
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Orland Park, IL – Amazon is gearing up to take a significant step in brick-and-mortar retail with the announcement of its first big-box store in Orland Park, a village near Chicago. The new 225,000-square-foot store will blend groceries with general merchandise, directly competing with Walmart’s supercenter model, which typically covers around 179,000 square feet.

Located in Cook County, Illinois, the new Amazon store marks a bold move in the company’s ongoing push into physical retail. The store will feature a broad selection of groceries, household essentials, and general merchandise, all offered at competitive prices. This expansion into physical retail comes as Amazon works to further integrate its online and offline shopping experiences, offering convenience to customers who are looking for a one-stop shopping destination.

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Amazon’s Big-Box Store: A New Concept for Shoppers
This upcoming store, situated next to a Costco, will include a 35-acre site with dedicated parking for pickup orders and space for smaller commercial outlets. Local planning documents revealed that the store’s design is not just about selling products but also creating a hub for the community, with a focus on convenience and customer experience.

An Amazon spokesperson emphasized that the store represents “a new concept” that aims to excite customers with its diverse offerings. “We think customers will be excited about this new shopping experience,” the spokesperson said. The store will combine fresh groceries with general merchandise, allowing Amazon to compete head-on with Walmart’s supercenter model that has dominated the retail landscape for decades.

Building on Existing Retail Ventures
This new store concept continues Amazon’s experiment with physical retail, which includes its Whole Foods Market and Amazon Fresh stores, as well as the Amazon Go convenience store chain. In fact, last year, Amazon piloted a new concept at Whole Foods Market in Plymouth Meeting, Pennsylvania, where shoppers could scan QR codes to order an expanded selection of groceries from an in-store micro-fulfillment center.

Amazon has faced challenges in gaining traction with physical retail locations in the past, with some concepts like Amazon 4-star stores and bookstores failing to meet expectations. However, the company has seen steady growth with Amazon Fresh, despite its stop-and-go expansion. This new big-box store blends groceries with general merchandise, a strategy that Amazon has been refining and one that has been a cornerstone of Walmart’s business for years.

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Competing with Walmart’s Grocery Dominance
Amazon’s grocery business has grown rapidly in recent years, with the company reporting over $100 billion in gross sales in 2024. However, Walmart still leads the grocery sector, with its grocery sales reaching $276 billion in net sales during its 2025 fiscal year. The new Amazon store aims to capture a greater share of the grocery market by integrating its vast online product catalog with physical store offerings.

Last year, Amazon introduced same-day delivery for perishable groceries, which allowed customers to order groceries alongside millions of other products from Amazon.com. This service is now available in over 2,300 cities and towns across the U.S., expanding Amazon’s reach in the competitive grocery market.

The Road Ahead for Amazon Retail
As Amazon continues to test new retail concepts, its shift to big-box stores signals a serious commitment to competing with long-established players like Walmart. With a focus on groceries, household essentials, and a broad range of general merchandise, Amazon’s new store concept will undoubtedly impact the retail landscape. However, whether this new venture will succeed where others have faltered remains to be seen.

With the Amazon store set to open soon, all eyes will be on the company’s ability to deliver a seamless shopping experience that rivals both Walmart and other big-box retailers. If successful, this move could redefine the way consumers shop, combining the convenience of online shopping with the tactile experience of in-store retail.

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