Walmart and Amazon are racing to speed up order deliveries in small, rural areas of the USA, aiming to dominate online retail in regions once considered too remote or unprofitable. These sparsely populated areas are now seen as a significant source of untapped sales, with analysts estimating the market could generate up to $1 trillion in annual sales.
Walmart's Advantage
Walmart appears to hold an initial edge in securing a loyal customer base across rural US communities. Data from Morgan Stanley indicates that about 90% of Americans live within 10 miles of a Walmart store, and nearly half of its Supercenters are in towns with populations under 20,000. This proximity gives Walmart a built-in logistics advantage.
Amazon's Investment
Amazon invested $4 billion last year to bring same-day or next-day deliveries to 4,000 smaller cities and rural communities, including Lewes, Delaware; Milton, Florida; Padre Island, Texas; and Abbeville, Louisiana. CEO Andy Jassy noted that the average monthly number of customers receiving same-day deliveries doubled in 2025. Amazon uses AI-based tools to forecast demand and opens small micro hubs in rural areas.
Changing Demographics
Rural areas have traditionally posed challenges for delivery due to longer travel distances and unpaved roads. However, median household income in rural counties rose 43% between 2010 and 2022, reaching nearly $60,000. Remote workers relocating to exurban communities have driven demand for fast deliveries. Rural shoppers spend $1 trillion annually on merchandise, accounting for 20% of all US retail purchases (excluding cars and gasoline).
Competitors and Strategies
Dollar General extended same-day delivery to over 17,000 stores, with more than 80% of orders delivered in an hour or less. Tractor Supply is adding delivery hubs to cover over half its stores. Walmart uses robotic technology in its stores to pick and pack online orders, expanding delivery radius from 10 to 30 miles. A hexagonal mapping system replaced ZIP codes, enabling same-day deliveries to 12 million more households. Amazon sets up small delivery stations in rural areas to shorten distances from warehouses, aiming to reduce delivery times from five days to under two days. For example, a station in Roanoke, Virginia, delivers tens of thousands of packages daily to customers up to 90 minutes away.
Dalton Klinger, operations manager of the St. George, Utah Chamber of Commerce, said his Amazon orders now arrive in two days instead of four. "People are wanting faster deliveries," he said. "It's all about instant gratification."
