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Competitors Analysis of Walmart
Course: Production & Operations Management (e-BA 212)
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University: University of Southeastern Philippines
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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 $63.1 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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