Top Walmart Competitors in the US and International markets

Walmart has remained the top brand in the physical retail sector in the US for a long period. However, the company is now also establishing itself as a leading player in omnichannel retail as its ecommerce performance has continued to improve. The company operates in a large number of international markets under various banners and serves its customers through both physical and ecommerce channels. Its popularity has continued to increase supported by its EDLP pricing strategy and a strong focus on technological innovation. The company is a pioneer in digitalization in the physical retail sector and several other brands are also following in its footprints.

Sam Walton opened the first Walmart in 1962 at the age of 44 in Rogers, Arkansas.

The company utilizes four store types to serve its customers in the US and other markets. Its premium inhouse brand is called Sam’s Club and enjoys very strong popularity and customer loyalty in the US. Sam’s Club is also investing in digitalization, AI and machine learning to offer its customers a premium shipping experience.

Walmart is the largest and one of the most diversified retail corporations globally. It has several customers across various retail segments which we are going to discuss in this post.

Amazon:

Amazon is the largest player globally in online retail. It offers a vast assortment of products on its ecommerce platform and competes with Walmart across several product categories. To reduce the growing competitive pressure from Amazon, Walmart has increased its focus on ecommerce channels and uses several online platforms to serve its customers in the US and many of its international markets. Amazon is not just an ecommerce player but also a cloud technology brand and a leading innovator. However, Walmart has continued to expand its digital capabilities. Years ago, it acquired a large stake in Flipkart, the Indian based digital commerce platform. Since then, it has made several such acquisitions and continues to make large investments in digitalization and technological innovation to compete successfully with Amazon. 

Costco:

Costco is also a well known player in the US physical retail sector that operates a large chain of membership based warehouses. Apart from the United States, Costco serves its customers across some international markets also. Like Walmart, Costco also offers its customers a vast assortment of products at discounted prices. Compared to Walmart, the product range offered by Costco is smaller. However, it has differentiated its brand from Walmart by offering its customers a distinguished shopping experience. It also offers premium products under its inhouse brand Kirkland Signature. Costco is the second largest player in the United States physical retail sector after Walmart. Walmart’s digital capabilities are much stronger compared to Costco and other physical retailers. Costco will need to invest more in innovation and digitalization to match Walmart’s fast expanding digital commerce capabilities. 

Target Wholesale:

Target Wholesale is a popular US based physical retailer that focuses on offering a diverse range of products including fashion and home goods. It offers a nice product range and just like the other two retailers we have discussed previously, it also focuses on offering products at discounted prices to its customers. Lower prices are a key driver of competitive advantage in the physical retail sector and therefore leading retailers use it as a main strategy for acquiring customers and building customer loyalty. However, Target has also successfully differentiated its brand from others by offering a vast range of private and Target only brands. Its vast range of offerings include food and general merchandise — from clothing to household goods to electronics and toys. The company customizes the product assortment at each of its stores in the US based on local demand in the area.

Kroger:

Kroger is among the largest grocery chains in the United States and competes with Walmart in mainly the grocery segment. It sells a vast range of private label items and at an average there are 13,500 private label items in each Kroger supermarket. At the end of January 2023, Kroger operated 2,719 supermarkets in 35 states of the US and the district of Columbia. The company operates its supermarkets under multiple banner names. It has also established 33 food production plants including mainly dairies and bakeries.

Aldi:

Aldi competes with Walmart mainly in the low cost grocery segment. Aldi also focuses on offering grocery at lower prices and on private label products. Apart from food and grocery products, Aldi also offers household essentials and personal care items. There are more than 2,350 Aldi stores operational in the United States, The brand is known for offering a vast range of grocery products at the lowest costs.

Lidl:

Lidl is another significant competitor of Walmart operating internationally and having a significant presence in the United States. It mainly deals in groceries and focuses on offering groceries at discounted rates. It also sells a vast range of private label products in its stores and around 80% of the products sold in its stores are private label. Lidl is also an international brand and competes with Walmart across various markets. The company tries to keep prices lowest by keeping overhead low and reducing costs in various areas. Lidl is a German brand. It launched its operations in the US in 2017. It sells local produce as well as fresh meats, seafoods and several more products at lowest prices in its stores.

Alibaba:

Alibaba does not offer Walmart any significant competition in the United States. However, internationally, it is a significant competitor in the ecommerce segment and a leading rival in the Chinese market. It is a leading China based ecommerce platform that offers a vast range of products but it does not have any significant presence in the United States.

Dollar General: 

Dollar General is also a well known name in the physical retail sector in the United States whose focus is on offering value oriented products at lower costs. Apart from national and highly trusted brands like Coca Cola, Pepsico, Kellogg’s, Unilever and Nestle, the company sells a large number of private label brands. It allows its customers to offer a significant range of products at substantially discounted prices.  Dollar General also competes on the basis of lower prices. Its private label brands include Clover Valley, Good & Smart, true living, Gentle Steps, Studio Selection, Comfort Bay, Bobbie Brooks, Smart and Simple.

Family Dollar:

Family Dollar is also a well recognized name in the world of physical retail in the United States, The company has been acquired by Dollar Tree and is a competitor of Walmart in the discount retail segment. Like several other leading retail brands in the United States, the company also offers products at heavily discounted prices. It offers a vast range of products priced in the $1 to $10 range. The range of products sold by Family Dollar includes food and beverages, paper products, health & beauty supplies, and pet food; home products such as housewares, gifts, bed linens, and home decor; apparel and accessories such as clothing, fashion accessories, and footwear; and seasonal and electronics merchandise such as holiday items, party supplies, and personal electronics. Following its acquisition of Family Dollar, Dollar Tree has also started combo stores.

Home Depot:

Home Depot is a leading name in the world of home improvement retail. It competes with Walmart in the segments including home and garden supplies, tools, and construction materials. Outside the US, Home Depot has its operations in Canada and Mexico. It has its stores operational in 50 states of the United States as well as Puerto Rico, the District of Columbia and the US Virgin Islands. It is the world’s largest home improvement retailer with a total of 2.355 stores operational at the end of 2023.

Lowe’s:

Lowe’s is also a well known name in the world of home improvement retail. The company competes with Walmart in the home improvement segment and has maintained a significant presence in the US. It has more than 1,700 stores operational in the United States.

CVS Health:

CVS is a leading name in the US in the health and pharmacy retail space and a leading competitor of Walmart in this segment. It offers a vast range of health and wellness related products and services. CVS had more than 9000 retail locations operational across the United States at the end of 2023. Apart from that, it also operated more than 1000 walk-in clinics as well as 204 primary care medical clinics.

Walgreens Boots Alliance:

Walgreens is also an established name in the health and pharmacy retail space and a leading competitor of Walmart in this segment. It caters to people’s health and wellness related needs in the US through its vast range of health products. Apart from being one of the largest US based drugstore chains, the company enjoys a dominant position in Europe and the Latin American region. The company also sells beauty products through both online and offline channels including its websites and more than 22,000 retail stores in 29 markets globally. 

Carrefour:

Carrefour is among the leading competitors of Walmart in the international markets. It is a France based global retail giant offering a vast range of products like Walmart. It has its operations in 30 countries and enjoys a significant presence in Europe, South America and the Asian markets. A significant part of its total sales comes from outside France.

Tesco:

Tesco is a leading UK based retail brand that operates internationally and is among one of the most significant competitors of Walmart in the international market.