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>Costco competes head-to-head with Walmart on prices, This isn't really true. Costco carries less than 4000 SKUs in its warehouses. Walmart carries 40000 SKU
by jasode 9y ago
>Costco competes head-to-head with Walmart on prices,
This isn't really true. Costco carries less than 4000 SKUs in its warehouses. Walmart carries 40000 SKUs. That's an order-of-magnitude difference.
Costco competes more with (Walmart's) Sams Club warehouse but based on my shopping, their product selections don't overlap. (E.g. Costco has high-end wine that Walmart/SC doesn't carry.)
To make Costco vs Walmart an apples-to-apples comparison, Costco would have to eliminate the $60 to $110 annual membership fees, allow any non-member to shop there, and add 45000 additional SKUs.
I don't know anyone who shops at both Walmart and Costco on a regular weekly basis. Their business structures attract very different shopper demographics.
- ftlio 9y agoThe income of your average Costco shopper is massive compared to your average Walmart shopper as well. They can't eliminate the annual fee either because it's literally less than their annual profit (well maybe not in this market but it was a few years ago). Their demographic is people with the financial 'ability' to think $100 ahead for a year, to whom they deliver goods at basically cost. Walmart vs Costco is a complete myth. Costco operates where Walmart does very poorly.