New York — Amazon has overtaken Walmart in sales, marking a significant shift in the retail landscape. This change ends Walmart’s 13-year reign as the world’s largest company based on revenue, a position it held firmly until 2025.

In that year, Amazon reported sales of $717 billion, edging out Walmart’s $713 billion, according to the latest financial disclosures. The competition between these retail giants continues to intensify, fueled by Amazon’s expansion into cloud computing and advertising, which have bolstered its financial growth beyond traditional retail.

Founded in 1994 as an online bookstore, Amazon has rapidly evolved, with its Amazon Web Services (AWS) segment generating nearly $129 billion last year alone. AWS offers a wide range of computing and storage solutions that serve numerous businesses and government entities globally. This portion of Amazon’s operations has not only confirmed its prominence in the tech sector but also helped buffer the company from losses sustained in the retail environment.

Last year, approximately $464 billion of Amazon’s revenue came from its online marketplaces and physical stores, including sales from third-party vendors. The company also garnered more than $100 billion through advertising and Prime subscriptions. In contrast, Walmart derives over 90% of its total sales from its vast network of brick-and-mortar stores and online platforms, which largely cater to everyday consumer needs.

Despite Amazon’s rising dominance, Walmart is undergoing a transformation of its own. Recently, the retailer’s stock value soared past $1 trillion, marking it as the first traditional retail company to achieve this benchmark. Furthermore, Walmart has transitioned its stock listing to the Nasdaq, signaling a shift in brand identity towards technology-driven initiatives.

Under the leadership of its new CEO, John Furner, Walmart’s U.S. sales have experienced a noteworthy boost, growing by 4.6% in the last quarter alone. This increase reflects a strategic shift, as middle-class and affluent consumers increasingly turn to Walmart to find savings amid economic pressures. As Walmart strengthens its market share against competitors like Target, it emphasizes its adaptability in an evolving retail environment.

Furner noted, “The pace of change in retail is accelerating,” indicating that the retailer is not just keeping pace but actively shaping the future of the industry. This commentary underscores Walmart’s commitment to innovation and growth, even as it navigates fierce competition from Amazon and other entrants in the market.

As the retail landscape continues to shift, both companies are likely to play pivotal roles in determining future trends in consumer shopping habits and technological integration.