The competition between Walmart and Amazon to dominate online retail in rural America is intensifying, with both giants investing heavily to accelerate delivery speeds to areas once considered too remote or unprofitable. These sparsely populated regions, previously overlooked by major retailers, are now seen as a significant source of untapped sales, with analysts estimating the rural market could generate up to $1 trillion annually.
Walmart appears to hold an initial advantage, with data from Morgan Stanley showing that approximately 90 per cent of Americans live within 10 miles of a Walmart store. Nearly half of its full-service Supercenters are located in towns with populations under 20,000. Amazon, meanwhile, invested $4 billion last year to bring same-day or next-day deliveries to 4,000 smaller cities, towns and rural communities, including Lewes, Delaware, and Milton, Florida.
The turf battle is taking place as FedEx, UPS and the US Postal Service scale back or slow deliveries to some rural areas to cut costs. David Guggina, CEO of Walmart US, said last year that rural customers want the same fast delivery options available in cities like Manhattan. Amazon CEO Andy Jassy noted in a letter to shareholders that the average monthly number of customers receiving same-day deliveries doubled in 2025 compared to the previous year.
Rural areas have historically been seen as less desirable due to longer travel distances and lower population density, but recent data shows steady growth in productivity and income. Median household income in rural counties rose 43 per cent between 2010 and 2022, reaching nearly $60,000 a year. Since the pandemic, exurban communities up to 60 miles from major cities have been among the fastest-growing areas in the US.
Other retailers are also targeting this market. Dollar General extended same-day delivery to more than 17,000 of its 20,000 stores in January, with over 80 per cent of orders arriving in an hour or less. Rural lifestyle retailer Tractor Supply is increasing direct delivery services for bulky items like fence panels and riding lawnmowers.
