Walmart is one of the largest and best-positioned warehouse stores in the United States. What started as one store in Texas is now 11,000 stores operating in 28 different countries. As well as having active online portals in 11 countries around the world.
Walmart went from a store where products were sold cheaper than in other businesses to becoming a multinational corporation of stores, the world’s largest public corporation. Even so, it remains a chain of department stores specializing in discounts.
What are the stores like Walmart?
A store that operates like Walmart means it is a department store. It must be a hypermarket specializing in optimizing expenses for American families. Walmart’s slogan is “save money. Live better” because of its specialty discounts.
For this reason, being a competitor of Walmart entails a series of requirements, such as operating in the same sector as this macro company. In addition, sales capacity must be equivalent to this large corporation’s.
Among the criteria to consider when comparing other companies with Walmart are: The size of the store must be similar to or larger than the Walmart company, and they must have a market capitalization, i.e., be listed among the major stock exchanges in the United States.
There are direct competitors and indirect competitors. Companies that are direct competitors are those that meet these requirements; non-direct competitors are all those companies that, although they have a similar market ideology to Walmart, do not fall within the standard.
The fact that a company is similar to Walmart does not mean that it is a direct competitor; it is important to know the difference. Let’s talk about companies that are similar to Walmart.
The company Amazon is currently Walmart’s biggest competitor. Amazon offers an extremely varied catalog of brands and services. Amazon operates online exclusively but generates 40% of e-commerce sales in the United States.
Walmart is indeed the leader in physical store shopping. However, Amazon leads the shopping business. Like Walmart, Amazon operates internationally, specifically in 21 countries worldwide.
Now, Walmart does not want to be left behind and recently announced a streaming system of the company to be called Walmart +, which will be born as competition to Amazon Prime, Amazon’s live-streaming system. Which means it wants to get into Amazon’s market.
Now, Amazon has also expanded its services by opening Amazon Go, a small supermarket store in the United States, although these stores are not the magnitude of Walmart stores. It is a start in the physical industry for this competing business.
Costco Wholesale Corporation is positioned as the second-largest department store chain in the United States, right after Walmart, so it is understood to be a competition of this company.
Costco operates as a kind of club where stores are considered memberships. At Costco, products are offered in a lower range than elsewhere but with better prices in return. Being a massive discount retailer on an international level like Walmart stores.
While both businesses specialize in selling grocery products and markets, both have a difference that separates them in business vision. Costco has a membership club format, which Walmart does not implement. Therein lies their main difference in the market.
It is the third-largest company in the United States, after Walmart and Costco. However, it is the largest supermarket in the United States, and it is there where it fights for positioning with Walmart. Kroger offers other services, but supermarkets are undoubtedly its greatest strength.
Walmart offers more economical products. However, Kroger has a variety of processed and organic foods, much larger and fresh. Kroger’s strong point is the quality of its food, which is always new and mostly without chemical processing.
Kroger has 2764 stores, a much smaller number than Walmart; however, in the grocery market, every day, it is gaining positioning, rising above Walmart as the ideal choice for Americans to make their markets.
This chain, which specializes in the food industry, offers very affordable prices for its processed items, fruits and vegetables, and a catalog of 100% organic and fresh meats, making it a very appealing combination for the American community.
Target Corporation shares the target audience and the market model with Walmart, a competitor. However, Target’s size does not compare to Walmart’s. Target currently has 1868 active stores, which is 9132 fewer than Walmart.
Target Corporation’s largest revenues are represented in the sale of food, beverages, clothing, cosmetics, and household products, just like the retail store, which is positioned first in the U.S. market.
In the online market, Target also competes against Walmart since sales of clothing and beauty products are exponentially increasing on Target’s online platform.
The Home Depot
The Home Depot supplies tools and specializes in construction and related services. It is currently the largest wholesaler of construction and home improvement services in the United States. With Walmart being a retailer, it makes them different types of markets.
Perhaps the target group of both companies is not the same; therefore, they are not in direct competition. However, Home Depot’s positioning in the U.S. market is considered to compete with Walmart’s positioning.
The Home Depot has a total of 1980 stores throughout the United States, 180 in Canada, and 125 in Mexico, making it present in more than 2,000 establishments where hardware products and home maintenance services are sold, adding presence in the continent.
For years I have studied American finance regulations. All the information in this blog is sourced from official or contrasted sources from reliable sites.
Salesforce Certified SALES & SERVICE Cloud Consultant in February 2020, Salesforce Certified Administrator (ADM-201), and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.