As the retail landscape evolves, both Amazon and Walmart are setting their sights on monetization strategies that extend beyond traditional sales. With the arrival of 2026, these giants are increasingly focused on building monetization layers that encompass advertising, data services, artificial intelligence (AI), subscriptions, and media-like distribution channels. The aim is not just to grow revenue but to gain greater control over demand and consumer attention in a highly competitive environment.
The approaches of Amazon and Walmart diverge significantly despite their shared goals. Walmart emphasizes monetizing proximity, leveraging its extensive network of physical stores to create experiential shopping environments. In contrast, Amazon seeks to monetize presence, embedding commerce seamlessly within content and digital interactions. This distinction will influence their future expansion and operational strategies.
Preparing for 2026: Strategic Moves and Innovations
Both companies are positioning themselves for a challenging retail landscape marked by shrinking margins and evolving consumer behaviors. This week, significant developments highlighted their preparations for the upcoming year. On December 17, 2025, Amazon announced a major reshuffle in its AI leadership, consolidating its artificial general intelligence efforts under the direction of Peter DeSantis, a veteran of Amazon Web Services (AWS). This strategic shift follows the recent showcase of new AI models and custom silicon at the AWS re:Invent conference.
The changes have garnered positive responses from analysts, with Bank of America forecasting a future characterized by “agent-driven” enterprises. Amazon’s intent is clear: it wants to define how AI integrates into its retail operations, advertising, and consumer experiences. The company recognizes that conversational interfaces are becoming vital commerce surfaces where content discovery and transactions converge. According to research from PYMNTS Intelligence, during Black Friday, 42% of shoppers utilized AI assistants to hunt for discounts, while 31% compared products through these tools.
On December 16, Amazon also expanded its offerings by introducing Instagram to Fire TV, providing users with a new way to access content. Aidan Marcuss, Vice President of Fire TV, emphasized the company’s commitment to enhancing the entertainment experience on larger screens. This partnership underscores Amazon’s strategy to monetize various interfaces where consumer attention is concentrated.
Walmart’s Retail Media Success: Monetizing Intent
Walmart has made headlines with impressive growth in its U.S. Retail Media sector, reporting a remarkable 33% year-over-year increase, significantly outpacing overall company revenue. Retail media and membership fees now contribute approximately one-third of Walmart’s operating income. The company’s advertising division, Walmart Connect, grew by 33%, while global advertising surged by 53%, including partnerships with companies like Vizio.
What stands out is not only the growth rate but also the broader context. Walmart’s retail media success comes during a time when consumer spending is conservative and traditional digital advertising faces regulatory scrutiny. This performance highlights the advantages of leveraging first-party data from physical transactions on a national scale.
Walmart is not merely expanding its retail operations; it is constructing a sophisticated ecosystem where commerce serves as a foundation for layered monetization. This approach mirrors Amazon’s evolution over the past decade, suggesting a belief that future retail economics will resemble platform-based models more than traditional storefronts.
As both companies advance their strategies, the interplay of AI, consumer behavior, and monetization layers will shape the future of retail. The growing importance of experiential shopping and seamless digital interactions indicates that 2026 may be a pivotal year for both Amazon and Walmart as they navigate this rapidly changing landscape.
