Does Walmart own Costco? (It’s not what you think)
Costco appears to be the same type of store as Walmart-owned Sam’s Club, offering wholesale merchandise and membership-based shopping.
They’re even similar in many ways, from store setups to product lines and pricing. These similarities have many wondering if Walmart owns Costco. Here’s what I found!
Does Walmart own Costco?
Walmart does not own Costco wholesalers. In fact, as the second largest retail company in the United States, Costco is Wal-Mart’s biggest competitor. Costco is not owned by one person, but by a multinational corporation managed by a board of directors and public shareholders.
To learn more about the differences and competition between Walmart and Costco, keep reading!
Who are Costco’s main competitors?
As mentioned earlier, Costco is Walmart’s main competitor. The same goes for Costco, since their main competitor is Walmart. However, both Costco and Walmart have another competitor, and that is Target.
Costco sees Target as a competitor because of its higher dividend yield of 2.1%. That beats the 0.86% and 1.78% dividends of Costco and Walmart, respectively.
Target’s inventory turns are 5, compared to Walmart’s 8 and Costco’s 12. That means Costco outsells Walmart and Target.
Additionally, in 2020, Target had net income of $2.9 billion, Costco had net income of $3.7 billion, and Walmart had net income of $14.9 billion. But Costco has another competitor, albeit a smaller one.
Difference between Walmart Sam’s Club and Costco
While there are many similarities between the three stores, there are some differences worth noting.
For example, Costco’s Gold Star membership costs $60 and the Executive membership costs $120.
Club level is only $45 per year for Sam’s Club membership and $100 per year for Plus membership. Some other differences include:
- Costco’s sales are three times that of Sam’s Club.
- Costco has been growing faster than Sam’s Club.
- Costco has nearly 200 more stores than Sam’s Club.
- Costco has larger stores, averaging 146,000 square feet, while Sam’s Club averages 133,000 square feet.
- Costco is a public company, but Sam’s Club is a subsidiary of Walmart.
- Most shoppers choose where to shop based on what’s close to home.
- Sam’s Club has more name brands.
- Sam’s Club has more stores in the US than Costco.
- Costco’s prices are only slightly cheaper than Sam’s Club or Walmart.
How about BJ’s Wholesale?
BJ’s Wholesale is another Costco competitor, though their net income is much lower at $187 million.
That’s just one of the differences between the two, but it’s an important indicator that Costco is a better place to shop. Here are some other differences to be aware of:
- According to Consumer Reports, Costco ranks high for price and selection.
- BJ’s has Dunkin’ Donuts instead of a food court.
- BJ’s has a self-checkout lane, so customers don’t have to wait in line
- BJ’s membership is $55, which is $5 cheaper than Costco’s membership.
- Costco doesn’t mark their aisles and places items randomly, while BJ’s aisles are much better marked and organized.
- Costco has more variety and a better selection of items.
- Costco’s food court has similarly low food prices. You can buy a hot dog and soft drink for $1.50 and a slice of pizza for less than $2.
To learn more, you can read our other posts about Wal-Mart’s companies, Wal-Mart’s competitive advantages, why Wal-Mart is so cheap, and whether Wal-Mart is Chinese-owned.
the last point
Whoever owns Costco, they seem to be Best Choice for Wholesale Items under most circumstances. While Walmart (also known to many as Wally World) has a greater selection and more stores, their Sam’s Club has neither. Costco’s prices will be much lower than Walmart’s, but you’ll have to buy in bulk.
