Costco versus Walmart

  • Costco is the compounder with expanding margin, Walmart is building a second engine (e-commerce, advertising, marketplace) to replace an old one that stops growing (store-initiated comp).
    • Costco runs SG&A at 9.2% of net sales against Walmart's 20.7%, in every one of the last three years, while paying an average US wage of $32.00 an hour against Walmart's $18.25.
    • Costco added 25 net warehouses in FY2026 on a 914 base, each recent cohort annualizing $192M versus $150M for the FY2023 cohort; Walmart US added 5 net stores in FY2026.
    • Costco has taken US grocery share three years running, 7.6% to 8.2%, while Walmart has given back 20.4% to 19.9%.
  • Costco has lower import exposure and better tariff response capability given fewer SKUs.
  • Costco has stronger price control, given fewer SKUs.
  • Peer_Duel_Walmart_vs_Costco
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