Walmart Vs Costco
Walmart Vs Costco In 2022 (Prices, Products, Services + More)
Walmart’s current logo since 2008
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Walmart Home Office (headquarters) in December 2012
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| Formerly |
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|---|---|
| Type |
Public |
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ISIN |
US9311421039 |
| Industry |
Retail |
| Founded |
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| Founder |
Sam Walton |
| Headquarters |
,
U.S.
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Number of locations
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 10,593 stores worldwide (January 31, 2022) [2] [3] |
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Area served
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Worldwide |
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Key people
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| Products |
Supermarket , Hypermarket , Superstore , Convenience shop |
| Services | |
| Revenue |
US$ 559.2 billion (2020) [4] |
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US$22.55 billion (2020) [4] |
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US$13.70 billion (2020) [4] |
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Total assets |
US$252.5 billion (2020) [4] |
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Total equity |
US$87.53 billion (2020) [4] |
| Owner |
Walton family (50.85%) [5] |
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Number of employees
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2,300,000 (Jan. 2021) [4] U.S.: 1,600,000 |
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Divisions |
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Subsidiaries |
List of subsidiaries |
| Website |
walmart.com |
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Footnotes / references [6] [7] [8] |
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The retail industry has never seen such a competitive environment. Customers ultimately enjoy the reduced prices and wider selection.
However, it is difficult to determine where to shop for the perfect products and services.
The choice to shop at Costco or Walmart might leave you confused as to which store will have what you are looking for.
The Walmart Vs Costco table shows everything you need to know about each company. Prices, product history, customer service, investment tips, and pricing are all included.
Walmart is well-known for its 11,000 locations in 27 countries.
It was established by Sam Walton and is still located in Arkansas.
Walmart was first publicly traded in 1997. Now, it operates Sam’s Club warehouses, and is looking to the financial market.
Costco Wholesale Corporation or simply Costco was started in 1976. It was previously known as Price Club up to 1983.
Multinational company owns 800+ retail outlets across 13 countries. However, the company still calls Issaquah Washington State home.
Costco’s Warehouse-style stores compete with Walmart’s Sam’s Clubs and BJ’s Warehouses.
Costco is one of America’s largest retailers and has a net worth estimated at $80 billion.
First of all the difference between Walmart and Costco is in who can access them.
Costco has a $60 annual membership fee. Gold Star Executive members pay $120.
Walmart does not have any membership fees – anyone can walk in and start shopping.
You will feel at home once you walk into a Costco or Walmart.
For starters, both stores encompass a jaw-dropping amount of square footage – on average, about 179,000 square feet for Walmart and 140,000 square feet for Costco.
All that space allows for extra-wide aisles, for extra-wide carts that can fit a lot of goodies. You can almost feel the height of your ceilings.
Thereafter, however, things can get very different.
Walmart stores have at least one or two layout options. But Supercenters, groceries and other merchandise are located on distinct sides of each store.
Costco stores make use of all that vertical space by stacking stock sky-high, but their layout has also been subject to analysis by retail experts.
Costco worked with designers to develop an anti-anxiety environment which guides customers through their store.
This gentle herding is a way to encourage shoppers to shop by placing strategically placed products.
As I mentioned, Costco stores follow a warehouse model – product comes in bulk, albeit at discount prices.
It might be surprising to discover that Costco’s stores can only stock about 4000 items, despite being huge.
Walmart sells individual items, though some products come in bulk packaging. A single Walmart store can carry as many as 142,000 items.
Given these reasons, it can be difficult to choose which store you should visit if you’re only going to make one trip.
Do you have a large family or need to stock up for less? Costco it is. You are a loyal customer of certain brand names or do you prefer lots of choice? Walmart may be the better option.
Here are some of the identical departments found within both stores.
Departments:
Walmart may also offer crafting services that continue to sell off fabric bolts.
Costco’s floral department also offers a selection of ready-made gift baskets.
Walmart also has more options for prepared food, like fried chickens and other sides.
Costco also has a beloved food court with pizzas and hot dogs.
Without exclusive or private labels, and brands, there is no major chain retailer that would survive these modern times.
This is part and parcel of the business model that helps keep prices down.
These are some Walmart brand names that you will recognize:
Kirkland is Costco’s private label flagship brand.
Kirkland gets its name after a Washington suburb where an old store once stood.
When it comes to maintaining a well-stocked pantry and kitchen, prices are an important factor.
Which store offers the best prices for grocery staples
Gina Zakaria for Money.com did a price comparison between the two giant retailers and found that, on the whole, Costco prices were cheaper than Walmart’s.
Costco is more affordable per unit, ounce or pound. However, this means that you will be forced to purchase more.
It’s not a good idea to buy shredded cheese from Costco, but forget about freezing the remaining pound. This will result in you wasting all your savings.
Walmart and Costo each offer extra services in-store, such as vision centers, pharmacies and bank accounts.
Walmart’s stores both provide auto service, but some have garages, which allow them to do oil changes, tire repairs, and other services.
Costco, on the other side, connects customers to partnered shops for auto parts and provides discounts on these services. Some areas also offer propane tank filling stations or gas stations.
Additionally, Costco subcontracts or partners with companies to offer services like home improvement (flooring, even solar installation), mortgage purchase, and insurance plans.
After polling more than 62,000 shoppers, American Customer Satisfaction Index(ACSI) published its 2019 findings.
When it came to customer satisfaction, Costco took the top spot. Forbes.com highlighted Costco’s customer-first culture as an important reason.
To Costco’s score of 83/100, Walmart placed lower down with 74/100. While not an awful score, it was one of the bottom scores.
MarketWatch has published an article entitled “4 Reasons Walmart the Most Hated Retailer in America” Yikes.
It has worked for me. The service desk staff treat me with suspicion and have never treated me with smiles.
Walmart has an exceptional return policy. It allows you to exchange your item for store credit within 90-days of receipt.
Electronics, tobacco, alcohol, cigarettes, batteries and tires are the only exceptions. Custom-ordered items like personalized mugs is also allowed.
Costco may also take back the item if there is no receipt.
For Costco’s full return policy, read here.
Walmart and Costco have different stories to tell if good wages are considered part of a company’s ethical footprint.
Walmart has approximately 2.2 million employees around the world. In the U.S., their base wages start at $11.
Even though it is higher that the federal minimum wage at $7.25 per hour, it can still be difficult for single-income households to survive on that amount.
Walmart has recently stated that it was “bumping” wages for $15 an hour, but the wording matters.
The $13/hr wage will be only available to approximately 425,000 workers in the U.S. This will increase the average hourly wage and not just the baseline.
Costco is known for paying its workers well. Recently, they raised their starting wages to $16/hour.
If you’re looking to include a discount retailer in your investment portfolio, it’s definitely worth looking into either Walmart or Costco.
James Brumley at The Motley Fool thinks that Walmart has the better horse in the race ultimately.
Walmart’s stock value and valuation, and lack of Membership Pricing (Costco will increase), were the main reasons Costco chose Walmart.
Now that you know about Walmart vs. Costco, you can also read our related posts on how much Walmart pays stockers, 33 Walmart statistics, and 23 Costco statistics.
Walmart and Costco are both examples of the “different strokes” saying. They offer different experiences, while competing for discounts dollars.
Costco continues to be the preferred choice for families with larger children, when shopping for an event or party or when stocking up for once or twice monthly.
Walmart is your everyday favorite, because of its affordable prices, large selection, greater store accessibility, and great customer service.
Is Costco More Expensive Than Walmart?
Gina Zakaria, Money.com, did a price comparaison between both giant retailers. She found that Costco’s prices were generally cheaper than Walmart. This is however, a major problem: Costco prices are lower per unit/ounce or pound but you can’t buy as much.
Costco Products on Sale at Walmart.
Costco or Walmart is cheaper? You can’t really say which is better, as prices vary per item. But overall Walmart’s Great Value brand offers lower prices on many items including groceries and other household essentials.
Is Costco Better Than Walmart?
It is generally accepted that Costco often has products of a higher quality than Walmart, as well as better in-store service, at the cost of higher prices, as they sell most items in bulk. Walmart is the most affordable choice when you need to buy products, such as groceries or electronic items.
Whats The Difference Between Costco And Walmart?
Costco has a business model that requires members to pay fees for bulk purchases and Costco sells items at wholesale prices. Walmart however is a traditional retail outlet with the goal of lowering its prices.
.Walmart Vs Costco In 2022 (Prices, Products, Services + More)