Image: Orland Park Plan Commission
Amazon is planning a massive new big-box store near Chicago to blend online convenience with physical retail, escalating its rivalry with Walmart.
Amazon wants Walmart’s shoppers… and it’s willing to build a small city to get them.
The company has plans to roll out a sprawling new brick-and-mortar experiment aimed squarely at Walmart’s long-standing dominance in physical retail. The new 229,000-square-foot facility, proposed for the Chicago suburbs, marks Amazon’s latest attempt to build a grand-scale physical presence.
According to GeekWire, experts call the initiative a clear sign of “Walmart jealousy,” as the company plans to leverage its digital tools, such as in-store app ordering, to disrupt its biggest rival.
The end goal? To challenge Walmart’s multibillion-dollar hold on consumer dollars.
The store will be located at 159th Street and LaGrange Road, 30 miles outside Chicago. Amazon plans to redevelop a 35-acre property, which was once used by Petey’s II restaurant in Orland Park, Illinois.
A public hearing held this month provided data on the project, with planning documents presented to the community’s planning commission.
The redevelopment would incorporate five additional buildings. The buildings, which measure between 5,000 and 13,750 square feet, will be constructed in future phases. According to an Inc. report, the building plans indicate the store would include a large storefront for groceries, prepared foods, and merchandise. A warehouse will also support all on-site operations.
Jim Dodge, mayor of Orland Park, shared his support for the development in a press statement:
“When a global retailer of this scale is considering investment in Orland Park, it sends a strong signal about the vitality of our community, and the strategic importance of this corridor.” Amazon’s legal representative at the community meeting called it “the best that Amazon has to offer,” claiming it represents the company’s attentiveness to current retail demands.
The store will provide Orland Park with revenue from taxes and new job wages. The potential economic benefit has strengthened local support for the development. Though there are worries about increased traffic, plans are underway to keep that in check.
The store’s back-room feature allows shoppers to place an order right in the facility and have their item ready before they reach the counter. The process eliminates the time spent walking long distances to find items.
Amazon calls the costly development an experiment it hopes users will love. The company is betting heavily on the initiative, which aims to capture the 93% of its customers who still shop at Walmart. By blending its online shopping experience with Walmart’s physical retail style, the company, which generated $638 billion in 2024, plans to significantly increase its revenue.
Over the years, Amazon has experimented with various formats to maintain its position as the leading shopping platform. The $13.7 billion acquisition of Whole Foods was a successful investment, and Amazon plans to leverage that experience in its new large-format store.
Adding Whole Foods to its subsidiaries, with its former CEO overseeing Amazon’s worldwide grocery stores, turned out well. Its grocery arm now serves over 150 million shoppers and generated $100 billion in revenue in 2024.
Amazon has been one of the companies that has significantly adopted automation for its needs. With thousands of recent layoffs driven by AI and an automated micro-fulfillment center in its Whole Foods locations, there’s a chance this new store could be automated soon.
Plans are not finalized yet. What comes next is left to the Board of Trustees of Orland Park Village to approve on Jan. 19. However, based on the massive support from the planning commission, which approved with a 6-1 vote ratio, Amazon may get a soft landing from the Board.
Based on village estimates, if the Board approves Amazon’s plan, construction will begin this year, with the store opening late 2027.
Also read: AI in retail is moving from experimentation to essential tools for inventory, forecasting, and more personalized shopping experiences.
Joseph is a Technical Writer with about 3 years of experience in the industry, also advancing a career in cyber threat intelligence. He is passionate about the responsible use of technology, a passion that led him into cybersecurity. As an undergrad, he leads a novel community of technology enthusiasts at his school, NOUN, where he guides and shares resources for beginners in tech. His writing experience includes writing on a diverse range of topics, from consumer tech to startups and tutorials. Additionally, he periodically shares case studies and research reports on cybersecurity on his social media pages.
