ALEXANDRIA, Va.—Amazon has been known as the great disruptor to the retail industry, both physical retail and e-commerce, but is the e-commerce giant still causing a major impact on the industry?

Retail Dive reports that Amazon’s disruption appears to be waning, as major retailers, such as Target and Walmart, have successfully copied some of Amazon’s playbook, improving their e-commerce offerings and leveraging their physical locations. Also, independent businesses, including bookstores, have survived the Amazon wave. According to the U.S. Department of Commerce, Amazon still dominates 40% of online sales in the U.S.; however, physical retail accounts for 85% of retail sales.

But retail is evolving, and Amazon has not been immune to the challenges of meeting the changing consumer. Last month, Amazon warned that its holiday quarter may not be profitable, and the company has seen retail sales flounder throughout the year. Amazon also has closed most of its non-grocery brick-and-mortar locations and has halted or canceled warehouse expansions, reports Retail Dive.

“Clearly, most of these stores in categories such as bookstores lacked elements of innovation or driving in-store engagement or experience,” Euromonitor Senior Consultant Rabia Yasmeen told Retail Dive. “Even its grocery stores ... are focused on payment capabilities, cashier less or self-checkout—and still hold room for integrating its online operations with offline presence.”

According to Doug Stephens, author of “Resurrecting Retail: The Future of Business in a Post-Pandemic World,” Amazon can no longer rely on its tech strength and focus on speed and efficiency to win over the consumer, as other retailers now offer these benefits.

“Not only has the retail world closed the gap with Amazon, but the very nature of e-commerce has also fundamentally changed,” Stephens told Retail Dive. “Increasingly, retail is not something that resides on static, boring, search-driven websites (like Amazon.com). It now lives inside interesting, entertaining and engaging content and communities of interest. All things Amazon has never been very good at developing.”

The Walmart+ membership program is a fierce competitor to Amazon’s Prime Membership since it offers quick delivery and a plethora of other benefits, such as free shipping for online purchases, free deliveries from the store and gas discounts.

“It took them a long time, but Walmart is now basically copying Amazon’s playbook,” Rick Watson, founder and CEO of RMW Commerce Consulting, told Retail Dive. “The only thing that they haven’t copied is AWS, which they can’t really do. But advertising, fulfillment, marketplace, that’s straight out of Amazon’s playbook. They’re not really doing anything unique. Their answer is just to wait and see what works at Amazon and copy it. And, look, it seems to be working for them, and they’re more profitable right now.”

Target purchased Shipt in 2017 to bring in an omnichannel aspect to its business and revamped its app, and both Walmart and Target, as well as other retailers, have used their physical presence as leverage in winning over consumer dollars.

“Target found its own path,” Watson told Retail Dive. “Everything runs through their stores. I’ve always been super impressed by what they’ve done, trying not to copy Amazon.”

This summer, Target announced it would open three additional delivery hubs to fulfill online orders faster and at a lower cost. The retailer opened its first delivery hub in Minneapolis, and after its success, opened five more in Atlanta, Philadelphia, Dallas, Austin and Houston.

“Our goal is meet the guest where they are, when they want, how they want,” Target Chief Operating Officer John Mulligan said in an interview with CNBC. “And so if they do want us to ship something to their home, we want to make that as efficient as possible.”

E-commerce is nearly 20% of Target’s sales, and more than half of these sales are same-day services, such as curbside pickup, and the rest are shipped to homes.

However, Retail Dive reports that its sources pushed back on the idea that Amazon is done disrupting retail.

“Many people look at where Amazon is now and forget that each step they took over the last 20 years to win the customer’s business never made immediate impact to their bottom line,” Forrester Principal Analyst Brendan Witcher told Retail Five. “Amazon has incrementally been building an ecosystem of connections into our lives that will help them better sell to us. Within that strategy is the disruption that is the most impactful because it is almost too hard to see or compete against until it is too late.”