Competitors Analysis of Walmart - Competitor’s Analysis Competitor 1 Kmart and Target ❖ Kmart and - Studocu
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Competitors Analysis of Walmart

It discusses the three competitors of Walmart
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Production & Operations Management (e-BA 212)

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Competitor’s Analysis

Competitor 1

Kmart and Target

❖ Kmart and Target. Like Wal-Mart, Kmart and Target had stores that stock only general in merchandise as well as superstores (Super Target and Super Kmart) that included a full- line supermarket on one side of the store. Wal-Mart also competed again category retailers like Best Buy and Circuit City in electronics: Toy "R"US in toys, N and Goody's in apparel, and Bed, Bath, and Beyond in household goods. ❖ Both Kmart and Target have clustered their supercenters in a small number of metropolitan markets. But they can’t still defeat Wal-Mart’s supercenters

Competitor 2

Warehouse club segment

❖ One of the two largest competitors in the warehouse club segment were Costco Wholesale. In 2007, Costco had sales of $63 billion at 499 stores versus $44 billion at 591 stores for Sam’s. The average Costco store generated annual revenues of 126 million about 68 percent more than the $75 million average at Sam’s. Costco which had $52. million members as of May 2008, catered to affluent households with upscale tastes and located its stores in mostly urban areas.

❖ Costco was the United States biggest retailer of fine wines (500 million annually) and roasted chickens (100,000 a day). While its product line included food and household items, sporting goods, vitamins and various other merchandise, its main attraction was big-ticket luxury items (diamonds and big-screen TVs) and the latest gadgets at bargain prices.

❖ Because of Costco’s own strategy, (Costco mark ups at 14 percent) Costco had beaten Sam’s in being the first to sell fresh meat and produce (1986 versus 1989), to introduced private-label items (1995 versus 1998), and to sell gasoline (1995 versus 1997). Costco offered its workers good wages and fringe benefits: full time hourly workers made about 40,000 a year after four years.

❖ Costco rates the best of the three for inventory turnover, followed by Walmart and then Target. Costco is regarded as the best employer in the United States. Due to its appeal to

the value-oriented crowd, Costco is considered as one of the top Walmart competitors. (www. marketing91)

❖ Just like Wal-Mart, Costco offers low prices that makes them gain a lot of customers too. Costco buy in bulk and are able to source from their suppliers at lower prices.

❖ Superior customer experience helps retail brands gain greater loyalty to their customers. In retail industry, the average bargaining power of customers is moderately high. Larger brands such as Wal-Mart and Costco are enjoying greater loyalty towards customers.

Competitor 3

Carrefour

❖ Internationally, Wal-Mart's biggest competitor was Carrefour, a France-based retailer with 2007 sales of E92 million and nearly 15,000 stores of varying formats and sizes across much of Europe and in such emerging markets as Argentina, Brazil, Colombia, China, Indonesia, South Korea, and Taiwan.

❖ Both Wal-Mart and Carrefour were expanding aggressively in Brazil and China, going head-to-head in an increasing number of locations. Going into 2008, Carrefour had 1, stores (S00 of which were hypermarkets) in Asia and Latin America, with sales approximating $l5 million.

❖ Carrefour's introduced the idea of hypermarket. Hypermarkets at Carrefour 10, square on average. Mt. (108,000 sq. ft.) and were located in a shopping center. The company's location strategy was to place out-of-town stores in areas where highways provided easy access and land could be acquired cheaply. The organization has always supported quick design of facilities. This gave it a total investment of retail space per square meter in a fully fitted store equal to about one-third that of conventional supermarkets and department stores.

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Competitors Analysis of Walmart

Course: Production & Operations Management (e-BA 212)

14 Documents
Students shared 14 documents in this course

University: University of Southeastern Philippines

Was this document helpful?
Competitor’s Analysis
Competitor 1
Kmart and Target
❖ Kmart and Target. Like Wal-Mart, Kmart and Target had stores that stock only general in
merchandise as well as superstores (Super Target and Super Kmart) that included a full-
line supermarket on one side of the store. Wal-Mart also competed again category
retailers like Best Buy and Circuit City in electronics: Toy "R"US in toys, N and Goody's in
apparel, and Bed, Bath, and Beyond in household goods.
❖ Both Kmart and Target have clustered their supercenters in a small number of
metropolitan markets. But they can’t still defeat Wal-Mart’s supercenters
Competitor 2
Warehouse club segment
❖ One of the two largest competitors in the warehouse club segment were Costco
Wholesale. In 2007, Costco had sales of $63.1 billion at 499 stores versus $44.4 billion at
591 stores for Sam’s. The average Costco store generated annual revenues of 126 million
about 68 percent more than the $75 million average at Sam’s. Costco which had $52.6
million members as of May 2008, catered to affluent households with upscale tastes and
located its stores in mostly urban areas.
❖ Costco was the United States biggest retailer of fine wines (500 million annually) and
roasted chickens (100,000 a day). While its product line included food and household
items, sporting goods, vitamins and various other merchandise, its main attraction was
big-ticket luxury items (diamonds and big-screen TVs) and the latest gadgets at bargain
prices.
❖ Because of Costco’s own strategy, (Costco mark ups at 14 percent) Costco had beaten
Sam’s in being the first to sell fresh meat and produce (1986 versus 1989), to introduced
private-label items (1995 versus 1998), and to sell gasoline (1995 versus 1997). Costco
offered its workers good wages and fringe benefits: full time hourly workers made about
40,000 a year after four years.
❖ Costco rates the best of the three for inventory turnover, followed by Walmart and then
Target. Costco is regarded as the best employer in the United States. Due to its appeal to

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