Amazon is set to build a large retail store in Orland Park, Illinois, to compete with Walmart. The new location will measure nearly 225,000 square feet and will sell groceries and general merchandise.
Amazon’s New Retail Strategy
This store will be Amazon’s first designed to compete directly with Walmart’s supercenters. An Amazon representative stated that this new store concept is expected to excite customers by offering a wide selection and low prices.
The retail store will be built next to a Costco at 9600 1569th St. Plans include dedicated parking for pickup orders and smaller retail spaces. The Planning Commission has approved the site plans, pending final approval from the village board later this month.
Challenges in Physical Retail
Amazon has faced difficulties with its existing physical store formats. Previous attempts to establish apparel shops, bookstores, and 4-star locations have not succeeded. The Amazon Fresh chain has also experienced inconsistent growth since its launch in 2020.
The new big-box location aims to merge groceries with general merchandise, a strategy that has long been successful for Walmart. Last year, Amazon expanded same-day delivery of groceries to about 2,300 cities, allowing customers to order alongside a range of products from Amazon.com.
Market Context and Competition
Amazon reports that over 150 million people in the U.S. shop for groceries through the platform, achieving over $100 billion in grocery sales in 2024. In comparison, Walmart reported $276 billion in food and beverage sales for 2025.
Despite the competition, Walmart has consistently indicated improving grocery sales in the U.S., further emphasizing the competitive landscape for both retailers.
