Top competitors of Walmart in the US and their 2019 revenues.
|Retailer Brand||2019 Revenue (billions)|
There are a large number of players in the US retail industry including the physical retail leader Walmart and the ecommerce leader Amazon. The retail industry has seen a lot of growth in the recent years driven mainly by growth of ecommerce and higher spending due to increased economic activity and higher employment. In fiscal 2020, Walmart enjoyed heavy growth in its ecomemrce sales and revenue. From $25.1 billion in fiscal 2019, the ecommerce revenue of the company in 2020 grew to $35.9 billion.
There are a large number of competitors of Walmart in the US and the list includes both big and small players. Here are the most significant competitors of Walmart in the US.
The Kroger Company:
The Kroger company is headquartered at Cincinnati, Ohio, United States. It is among the largest food retailers in the US. Kroger’s physical retail store network is spread through 35 US states and the District of Columbia. It has 2,757 supermarkets and multi department stores operational in the US supported by 45 distribution centers. Nearly half a million associates work at the Kroger company. The company also runs 1,567 supermarket fuel centers and 35 food production plants as well as 256 jewellery stores. The company had consolidated net worth $122.3 billion in 2019. It experienced 2% same store sales growth in fiscal 2019. Kroger like Walmart has been investing in e-commerce for faster growth and during the last quarter of 2019, its ecommerce sales grew by 19%.
Costco is also one of the leading US based retail brands. It operates membership based warehouses in the US and some more international markets. Its operating model is very different from Walmart or the other retailers. Like Walmart, Costco has also been investing in technology for faster growth in e-commerce sales. Costco enjoys very strong reputation in the US retail industry mainly because of its customer focus and an organizational culture that is centered upon diversity, inclusion and satisfaction of customers, employees and other stakeholders.
Costco operated 785 warehouses in 2019 of which 546 were in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two in Spain, one in Iceland, one in France, and one in China.
Costco also operates a private label brand called Kirkland Signature (a direct competitor of Sam’s Club). In 2019, Costco’s net sales reached $149.4 billion (6% growth compared to the last year).
Home Depot is the largest home improvement brand in the world. Its headquarters are located at Atlanta, Georgia in the United States. The company offers a very large range of home improvement products and apart from that it offers building material, lawn and garden products and home decor products as well as home improvement services. As of fiscal 2019, Home Depot’s number of operational stores was 2,291. The consolidated net sales of Home Depot reached $110.23 billion in 2019 compared to $108.2 billion in 2018 (2% yoy growth).
Walgreens Boots Alliance:
Walgreens boots Alliance is another US based retailer that sells health and wellness products apart from beauty and lifestyle products. Walgreens and its subsidiaries are present across 25 countries. Its phsyical stores (including the companies in which it has an equity investment) are located across 11 countries. A total of 18,750 such stores were operational as of 2019. Walgreens also operates one of the largest global pharmaceutical wholesale and distribution networks which has more than 4001 distribution centers delivering to more than 240,000 pharmacies, doctors, health centers and hospitals each year in more than 201 countries. In fiscal 2019, the consolidated net sales of Walgreens reached $136.9 billion.
Target Corporation is also mong the biggest players in the US retail industry. Its headquarters are located at Minneapolis in Minnesota, United States. Target was founded in 1902 as Dayton DryGoods Company. However, the first Target store opened in Minnesota in 1962. Target stores are operational across all the 50 states of the US. Target is a general merchandise retailer and sells a large range of products. Its net revenue in fiscal 2019 reached $77.1 billion. The number of Target stores operational in 2019 was 1871 and the number of distribution centers that support its retail network was 41. Target also owns 42 unique brands not available at other retailers.
Amazon is the world’s largest ecommerce brand with a global presence. It was founded by Jeff Bezos and has its headquarters in Seattle, Washington, United States. Amazon’s global sales and distribution network caters to a large audience globally. Apart from that its ecommerce websites are supported by a global network of global warehouses for supply and distribution.
The consolidated net sales of Amazon have more than doubled in the last four years mainly because of growth in demand, technological innovation and customer experience. Amazon is also a leading cloud technology brand, but ecommerce accounts for the largest part of its revenue. Its business operations are divided into three segments including North America, International and Amazon Web Services. In 2019, the consolidated net sales of Amazon reached $280.5 billion, rising from $232.9 billion in 2018.
Lowe’s is the second largest home improvement brand in the world. It was ranked at the 40th spot on the fortune 500 list in 2018. The company serves more than 18 million customers each week in the US, Canada and Mexico. Its largest market is the United States. The US market accounted for more than 90% of its revenue in 2018. Net sales of the company reached $72.1 billion in 2019. The company employs around 310,000 people. Lowe’s sells merchandise in 13 categories ranging from appliances and tools to paint, lumber and nursery products. The company also sells around 400,000 products online.
Best Buy is also one of the biggest retail brands in the United States. It sells merchandise in the following main categories: computing and mobile phones, consumer electronics, appliances, entertainment, services and other.
Apart from the US, Best Buy has operations in Canada and Mexico. As of the end of fiscal 2019, Best Buy had 1187 large format and 51 small format stores in its domestic and international markets. There were a total 1,026 Best Buy stores operational in the US in 2019 and 212 in its international markets. The consolidated net revenue of the company was $42.9 billion in 2019 compared to $42.15 billion in 2018.