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Who Are Costco’s Main Competitors?

Costco Wholesale Corp’s (COST) main competitors in the highly competitive retail market of large discount stores include Walmart Inc. (WMT) and Target Corporation (TGT). These companies are also sometimes classified as consumer 澳洲幸运5官方开奖结果体彩网:defensive stocks.

Key Takeaways

  • Costco operates membership warehouses where consumer goods are sold at wholesale pricing.
  • In the highly competitive large discount store segment, Costco's main competitors include Walmart and Target.
  • Inventory turnover metrics indicate the quality of the store's inventory.

Costco

Costco operates membership warehouses where 澳洲幸运5官方开奖结果体彩网:consumer goods are sold at wholesale pricing. Private-label and Costco brand products are 🐲sold across merchandise categories, such as snack foods, prepackaged foods, tobacco, beverages, cleaning supplies, electronics, health and beauty aids, office supplies, deli and produce, and apparel.

Founded in 1976, Costco also operates pharmacies, photo centers, food courts, gas stations, and other services. In 2024, Costco operated 871 locations globally. The company is headquartered in Issaquah, Washington. As of Nov. 12, 2024, Costco had a market capitalization of approximately $413. 3 billion. Its inventory turnover ratio was 12.60, meaning it roughly turned over its entire inventory monthly.

澳洲幸运5官方开奖结果体彩网:Inventory turnover is an important metric for retail stores indicating how efficiently a company manages its ordering and inventory. The inventory 澳洲幸运5官方开奖结果体彩网:turnover ratio can also measure the quality of a store's inventory and the amount of ob🧸solete inventory.

Fast Fact

Costco uses memberships to maintai☂n a loyal customer base, whereas Target and Walmart are open t💟o all.

Walmart Inc.

Walmart Inc. operates retail stores worldwide through three primary segments: Walmart U.S., Walmart International, and Sam's Club. Sam's Club most closely resembles Costco’s structure. As of 2024, Walmart operates over 10,500 stores under its three subsidiaries in 19 countries. Walmart, Inc. is headquartered in Bentonville, Arkansas, and founded in 1962.

Walmart stores offer grocery items, health and beauty aids, photo processing, pharmaceuticals, apparel, hunting products, automotive goods, and consumer electronics. Walmart offers cellular phone service, StraightTalk, through Verizon's towers. The company offers 澳洲幸运5官方开奖结果体彩网:financial services, including 澳洲幸运5官方开奖结果体彩网:money orders, prepaid cards,ไ check cashing, and bill payment. Both brand-name and private-label goods 🐭are sold in Walmart stores and online.

As of Nov. 12, 2024, Walmart (WMT) had a market capitalization of approximately $682.93 billion. Its inventory turnover ratio was 8.79, lower than Costco's.

Fast Fact

As of Nov. 2024, the 澳洲幸运5官方开奖结果体彩网:dividend yield for Walmart was 0.99%, outperforming Costco's 0.50%. Target exceeded both at 2.92%.

The Target Corporation

Target is a general merchandise discount retailer in the U.S. This chain offers household essentials, pharmaceuticals, personal care items, apparel, sporting goods, electronics, and groceries. Target has REDcard debit and credit cards, giving consumers a 5% discount on purchases.

Target uses brick-and-mortar locations and e-commerce. As of 2024, Target operated 1,956 stores. The Target Corporation was founded in 1962 and is based in Minneapolis, Minnesota.

Target's inventory turnover ratio of 6.12 indicates it only turns its inventory about half as often as Costco and less than Walmart.

How Does Costco's Revenue Compare to its Competitors?

For fiscal year 2023, Walmart exceeded Costco and Target with $648 billion in revenue. Costco posted $242.3 billion in revenue, with Target at $107.4 billion.

What Differentiates Costco From Its Competitors?

The most significant differentiator is that only members can shop at Costco🍸, which allows it to offer products in bulk at lower prices than its competitors.

What Is Costco's Competitive Strategy?

Costco uses its membership to drive customer loyalty. Canadian members can also get 澳洲幸运5官方开奖结果体彩网:discounts for pet insurance as an added perk.

The Bottom Line

Costco is a membership-based retail store that competes with Walmart and Target. As of 2024, Walmart boasts the highest annual revenue, Target gives investors the highest dividend yield, and Costco has the best inventory turnover.

Article Sources
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