Amazon posted $716.9 billion in full-year revenue, narrowly surpassing Walmart’s $713.2 billion and claiming the top Fortune 500 position for the first time since 2013. This milestone underscores Amazon’s rapid scale compared with the retail giant’s long-standing revenue dominance.

In January 2026, Amazon halted its Amazon Fresh and Amazon Go initiatives, reallocating resources toward more profitable channels. The company plans to open over 100 new Whole Foods stores, intensifying its direct competition with established grocery retailers, including Target’s food and delivery divisions.

Walmart’s U.S. e-commerce segment grew 27% year-on-year in the latest quarter, driven by AI-driven in-app browsing and instant checkout features. Global online sales rose 24%, representing a record 23% of U.S. revenues and contributing to Walmart’s recent $1 trillion market valuation.

These developments heighten competitive pressure on Target’s grocery and digital sales channels. Target may need to accelerate its own e-commerce innovations and explore strategic partnerships or store network optimizations to defend market share against Amazon’s expanded presence and Walmart’s online gains.