Starting July 8, a race for consumer purchasing power begins in the USA: Amazon and Walmart launch their major sales events on the same day—and noticeably extend the duration of their respective events. While Amazon is extending its "Prime Day" format to four days for the first time, Walmart counters with a six-day discount battle—both online and in all 4,600 US stores.

This brings two giants into collision, increasingly competing for the same customers. Amazon continues to dominate online retail with over 40 percent market share, according to data from Emarketer. However, Walmart, traditionally strong in brick-and-mortar retail, reports annual e-commerce growth of over 20 percent and has massively expanded its online infrastructure.

Both companies pursue a similar strategy: the period known as the rather sluggish summer slump, directly after the 4th of July, becomes a sales platform with sometimes higher revenues than the classic Black Friday in November. Bank of America expects a gross merchandise value of around 23 billion US dollars for Amazon's Prime Day this year.

Walmart aims not only to catch up digitally with its own "Walmart Deals" campaign, but also relies on its physical presence – an advantage that Amazon does not have. Early access for subscribers of the in-house subscription service Walmart+ is intended to create additional incentives. At the same time, memberships are heavily discounted to match Amazon's Prime offering. The latter is still three times more popular according to a survey by Jefferies.

Amazon is noticeably responding to intensified competition. The extension of promotional periods indicates robust inventory levels according to analysts, despite ongoing uncertainties around import tariffs. Third-party sellers, like the company Pattern which sells on both platforms, are already reporting Walmart's growing relevance. "We benefit from Amazon feeling the pressure from other marketplaces," says Jared Mason, Vice President at Pattern.

What began ten years ago as a purely online initiative by Amazon has now grown into a de facto nationwide sales competition. The fact that now both companies are entering the competition simultaneously and with full force marks a new level of escalation in the battle for digital dominance in US retail.