Amazon Announces Walmart-Style Supercenter Plans: Building 220,000 Sq Ft Store in Chicago Suburb

Key Takeaways

Amazon announces plans for 229,000 sq ft big-box store in Orland Park, Illinois
Store size exceeds average Walmart Supercenter (179,000 sq ft), will sell groceries and general merchandise
Marks potential turning point in physical retail strategy - e-commerce operators should monitor competitive landscape changes

Amazon Plans First "Big-Box" Format Store

Amazon plans first big-box retail store in Chicago suburb

Amazon has submitted plans for a large-format store near Chicago that would be larger than a Walmart Supercenter.

On January 9, 2026, it was revealed that Amazon submitted building plans for a large retail store in Orland Park, Illinois. According to the plans, the store will span 229,000 square feet (approximately 21,300 square meters), significantly exceeding the average Walmart Supercenter size of 179,000 square feet.

The Orland Park Plan Commission approved the plans on January 6, 2026, with the next step being the final vote at the village board meeting on January 19. If approved, construction is expected to begin in late 2026.

The facility will sell both groceries and general merchandise, with prepared food options also available. Additionally, it will include functionality for customers to pick up online orders at the store, plus warehouse space for delivery drivers to pick up orders.

Background and Industry Trends

Evolution of Amazon's Physical Retail Strategy

Amazon has struggled with physical retail over the past several years. In 2022, it closed all 68 of its bookstores, 4-star stores, and Pop Up shops. In 2023, Amazon Style clothing stores were also shut down.

Furthermore, in September 2025, Amazon announced the closure of all 14 Amazon Fresh stores in the UK, with plans to convert 5 of them to Whole Foods. In the US, Amazon Fresh store closures continued in California, Virginia, and other states throughout 2024-2025.

Currently, Amazon operates approximately 58 Amazon Fresh stores, 14 Amazon Go stores, and over 500 Whole Foods Market locations.

Why "Supercenter" Now?

Amazon's grocery market share is only 2.7%, far behind Walmart's 21% share. With 86.3% of US grocery sales still occurring offline, a physical store network is essential to become a true category leader.

Walmart operates approximately 4,600 stores nationwide, with 90% of the US population living within 10 miles of a Walmart store. In contrast, Amazon has only about 60 Fresh stores and approximately 530 Whole Foods locations.

This plan signals Amazon's intent to directly challenge Walmart with a "supercenter" format combining groceries and general merchandise.

Store Details and Features

Location and Scale

The planned store will be built on 35 acres of land in Orland Park, a Chicago suburb. The site is at the intersection of two major roads, with large retailers like Target, Costco, and Trader Joe's located nearby.

The single-story store will have 229,000 square feet of retail space - approximately 28% larger than a typical Walmart Supercenter (179,000 square feet).

Services Offered

An Amazon spokesperson commented: "We regularly test new experiences designed to make customers' lives better and easier. The site in question is a planned location for a new concept that we believe customers will love."

According to planning documents, the facility is expected to offer the following services:

Grocery Sales: Wide assortment from fresh produce to daily necessities
General Merchandise Sales: Electronics, clothing, household goods, etc.
Prepared Foods: Restaurant-style meal options
Online Order Pickup: Integration of e-commerce and physical retail
Delivery Hub Function: Pickup space for drivers

This "limited warehouse component" means the store will function not just as a sales location but also as a last-mile delivery hub.

Impact on E-commerce Operators

Changing Competitive Landscape

This announcement suggests competition between Amazon and Walmart is entering a new phase. Mizuho analysts note that "Amazon is investing in groceries and rural areas, which means direct confrontation with Walmart."

Key points for e-commerce operators to watch:

Accelerating Omnichannel Strategy: As Amazon intensifies integration of physical stores and e-commerce, new sales channels may emerge for marketplace sellers
Expanded Delivery Infrastructure: With stores serving as delivery hubs, delivery speed to rural areas may improve
Intensifying Grocery Competition: E-commerce operators handling groceries should anticipate fiercer competition on price, assortment, and convenience

Future Schedule

If approved at the January 19 village board vote, construction is expected to begin in late 2026. Opening date has not been disclosed, but considering typical large store construction timelines, opening is projected for late 2027 to 2028.

Currently only one store is planned, but if successful, nationwide expansion may be considered.

Summary

Amazon's supercenter plan could mark a major turning point in the company's physical retail strategy. Building on lessons from previous small-format store failures, this appears to be a strategy to recapture grocery market share with Walmart-style large-format stores.

For e-commerce operators, it's essential to monitor market environment changes brought by intensifying competition between the two retail giants, Amazon and Walmart. In particular, as integration of physical stores and e-commerce advances further, the importance of omnichannel strategy is expected to increase significantly.

Going forward, attention turns to the final approval at the January 19 village board meeting and official detailed announcements from Amazon.