Digital Shift Gives Amazon 27% Edge in Discretionary Spend | PYMNTS.com

A PYMNTS Intelligence study, Consumer Wallet Reset: How Amazon Wins Discretionary Spend and Walmart Holds Necessities, shows a clear reallocation of consumer dollars as retail’s overall slice shrinks. Retail’s share of total spending fell 9% over three years, dropping to 30.8% in Q4 2025 from 34.3% three years earlier. Amazon captured a record 26.5% of discretionary retail spending in 2025, while Walmart stood at 5.6%. In total retail, Amazon reached 11.1% in Q4 2025, its best showing on record. Discretionary growth is strongest in electronics, clothing, health, furniture, and hobby goods, where Amazon commands significant shares (electronics 32%, hobby 35%), while Walmart remains dominant in groceries and everyday essentials.