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That article is paywalled for me, so I did some quick research. It looks like Walmart's gross profit of 25% is almost double that of Costco's 13%. Am I doing
by PopeDotNinja 8y ago
That article is paywalled for me, so I did some quick research. It looks like Walmart's gross profit of 25% is almost double that of Costco's 13%. Am I doing the math correctly?
>> Walmart [1]
Total Revenue (TR) = 500,343,000,000
Gross Profit (GP) = 373,396,000,000
Gross Margin = GP / TR = ~25%
>> Costco [2]
Total Revenue (TR) = 129,025,000,000
Gross Profit (GP) = 17,143,000,000
Gross Margin = GP / TR = ~13%
[1] https://finance.yahoo.com/quote/WMT/financials?p=WMT https://finance.yahoo.com/quote/WMT/financials?p=WMT
[2] https://finance.yahoo.com/quote/COST/financials?p=COST https://finance.yahoo.com/quote/COST/financials?p=COST
- barry-cotter 8y agoI was wrong on gross margins. You’re right. Walmart still can’t adopt Costco’s business model. It sticks many more things, in much smaller units, in way, way more stores and the average employee is not as skilled. https://www.forbes.com/sites/greatspeculations/2017/02/06/the-key-difference-between-costco-and-walmart/#4b5976454306 https://www.forbes.com/sites/greatspeculations/2017/02/06/th... > While Walmart’s gross margins are more than double those of Costco’s, an efficient model with significantly higher revenues per square foot ensure that Costco’s gross earnings for the same size of a store are higher than Walmart.