The retail industry is very competitive and it is very difficult to reach the top few positions and even tougher is to maintain and boost its growth. Some companies have been fortunate in achieving a greater share of the market whereas some are reputed names but their share is smaller. The competition is dependent on several factors for instance quality of the product and service, price structure, distribution strategy and convenience of buying.
Costco is an American origin public company that was founded in the year 1976 by its founders Jeffrey Brotman and James Sinegal. It serves with headquarters based at Issaquah, Washington in the United States and has spread its presence with seven hundred and eighty-five warehouses in thirteen countries.
Costco is associated with the retail industry and operates membership-only warehouses clubs. It is a retail chain that has the distinction of being the largest retailer in the world of organic foods, prime beef and wine. In the year 2019, the multinational corporation was ranked in the first position as the largest United States corporations in terms of total revenues by Fortune 500 rankings.
Costco is a leading player in the global market and its resilience to cash in viable opportunities has lead to a strong track record of success. International expansions, earning stability and inclusion of e-commerce platforms at the right time have helped the company immensely. It competes with regional, national and international retailers and wholesalers for the market space in the Wholesale-club segment and general merchandise retail segment.
Its competitors include supercenter operators, warehouse operators, online retailers, supermarkets, speciality stores etc. A brief history of Costco competitors is available below
Top 8 Costco Competitors in 2020
Walmart operates a chain of retail outlets in the form of grocery stores, discount department stores and hypermarkets through three segments Walmart International, Walmart US and Sam’s Club. Besides these outlets, it has an envious e-commerce network Walmart.com with one lakh visitors every month and an annual growth that surpasses 40%. This has made it a direct Costco competitor in the retail market. The multinational corporation has posted its revenues for January 2020 at 523.964 billion dollars making it one of the prominent companies in the world.
Walmart, Inc is an American origin public company that was founded in the year 1962 by its founder Sam Walton. It serves with headquarters based at Bentonville, Arkansas in the United States and has spread its presence with eleven thousand five hundred and three outlets and clubs in twenty-seven countries.
Walmart acquired several online platforms of diversified categories. Its huge product portfolio includes grocery, automotive goods, party supplies, craft supplies, pet supplies, hunting products, fitness items, health and beauty, jewellery, clothing, home and furniture, electronics and movies and music etc. It also offers financial products and services like bill payment, check to cash, prepaid cards and money orders etc. With innovative methods, high use of technology, good logistic system, great product performances and low-pricing strategy the company has been able to slowly climb the charts and occupy a great chunk of the consumer market.
2. BJ’s Wholesale Club
BJ’s Wholesale Club Holdings Inc is one of the most worthy Costco competitors in the world as both deals in membership-only warehouses clubs. The well-recognised chain is popularly referred to as BJ’s. It is associated with retail industry and deals in a product portfolio that includes products related to electronics, toys, small appliances, lawn and garden items, home, furniture, outdoor, jewellery, sporting goods, clothing, health and beauty etc. All the locations carry the items listed in its coupon book along with different varieties that are in demand in that specific area.
BJ’s Wholesale Club Holdings Inc is an American origin public company that was founded in the year 1984. It serves in East Coast of the United States and the states of Michigan and Ohio with headquarters based at Westborough, MA in the United States. The company has spread its presence with two hundred and sixteen locations out of which one hundred and thirty-six are gas stations. It acts as a subsidiary of its owner company Leonard Green & Partners.
To deal with rival brands Costco and Sam’s Club, BJ’s offers special benefits and incentives to its members. Member Pricing is one of its most popular schemes that helps the member to buy name-brand items at wholesale and discounted prices. Other schemes include manufacturer’s coupon that is accepted at the store along with the acceptance of several payment forms like major credit cards, debit cards, check and of course cash. It also offers special services like car rentals, optical department, and vacation packages and home heating oil to its members.
One of the prominent Costco competitors in the world is Target, which has the distinction of being the largest retailer in the United States. The brand posted revenues for the fiscal year 2019 at 75.356 billion US dollars and is considered one of the strongest players in the market and powerful Costco competitors.
Target is an American origin public company that was founded in the year 1902 by its founder John Geisse and George Dayton. It serves only in the United States with headquarters based at Minneapolis, Minnesota and has spread its presence with one thousand eight hundred and sixty-eight outlets in that country. The retail format of Target includes small format, hypermarket and discount store. It gives serious competition to Costco as it has targeted the image-conscious younger generation and has been able to occupy a greater chunk of market share. The company has launched schemes like Expect More Pay Less and Low Price Promise to lure in further customers and retain the loyalty of existing ones.
Target is associated with retail industry and deals in a diversified product portfolio that includes products related to categories like toys/games, footwear, pet supplies, small appliances, lawn and garden items, jewellery, furniture, food, electronics, accessories, apparel, health, beauty and bedding etc.
4. Best Buy
Best Buy posted revenues for the fiscal year 2019 at 42.88 billion US dollars and is considered one of the strongest players in the market and potent Costco competitor. It is a multinational retailer that operates via several subsidiaries like Pacific Sales, Magnolia Home Theater, Geek Squad and Best Buy Mobile. The domain BestBuy.com has also been a great helping hand for the brand in making a distinct name for itself in the retail world.
Best Buy is a public company of American origin that was founded in the year 1966 by its founder Richard M Schulze. It serves only in Mexico, Canada and the United States with headquarters based at Richfield, Minnesota in the United States and has spread its presence with nine hundred and ninety-seven outlets by February 2019.
Best Buy is associated with the retail industry and deals in appliances and consumer electronics. The brand has the distinction of being the largest speciality retailer in the retail industry of consumer electronics in the United States. The top Costco competitor was ranked at 72nd position in the Fortune 500 list of the year 2018 as one of the largest corporations in the United States in terms of total revenues.
Kroger is an American origin company that was founded in the year 1883 by its founder Bernard Kroger. The public company is associated with the retail industry and currently is the largest supermarket in the United States and fifth largest in the world for the fiscal year 2019 as per the revenues which are estimated at 121.16 billion dollars.
Kroger serves a wide area in the United States and by 2nd February year 2020, it had direct and indirect operations via two thousand seven hundred and fifty-seven multi-department stores and supermarkets along with two hundred and forty-two jewellery stores.
Kroger has shown immense growth in recent years with a 64% increase in sales in the year 2018. The steady growth factor has become a very visible threat and this is why it is considered as one of the top Costco competitors in the grocery market. The fully-integrated retail chain deals in manufacturing, sales and promotions and its strength lie in economies of scale.
6. The Home Depot
The Home Depot, Inc h is the largest retailer in the United States in terms of home improvement products. The brand posted revenues for the fiscal year 2018 at 108.2 billion US dollars and with four lakh employees in the year 2018, is considered one of the strongest Costco competitors in the retail market. It takes the help of its subsidiary company The Home Depot Pro to boost its consumer base and ultimately sales figures.
The Home Depot, Inc is an American origin public company that was founded in the year 1978 by its founders Kenneth Langone, Pat Farrah, Ron Brill, Arthur Blank and Bernard Marcus. It serves the United States, Canada and Mexico with headquarters based at Atlanta and has spread its presence with two thousand two hundred and eighty-five outlets. homedepot.com has visitors count in millions and has helped the brand in maintaining its stronghold in the market.
The Home Depot, Inc is associated with the retail industry and deals in a diversified product portfolio that includes a supply of construction products, tools and services. It also deals in home appliances along with garden supplies and plants, flooring, plumbing, paint, building materials, lumber, hardware and tools. It provides competition to the brand Costco via big-boss format stores and ninety distribution centres spread across the United States.
Amazon is an American origin public company that was founded in the year 1994 by its founder Jeff Bezos. It serves with headquarters based at Seattle, Washington in the United States and has spread its presence to seventy-three cities in thirty-three countries. Ranked as the most valuable company its product portfolio and active users exceed one hundred and nineteen billion items and one hundred million respectively.
Amazon has proved itself as one of the major Costco competitors with 280.522 billion dollars of revenues in the fiscal year 2019. It has well-established marketplaces with massive product categories as well as a huge customer base. Amazon is counted amongst the Big Four tech companies in the world and has been declared as one of the biggest brands in the global arena.
The international technology-based corporation started its journey by selling books and with time has spread its product presence to numerous industries like e-commerce, Artificial Intelligence, Cloud Computing, Consumer Electronics, Grocery Stores and Digital Distribution. In addition to allowing people to sell their merchandise the company stocks as well as sells its pieces of stuff. Its product portfolio includes Amazon Kindle, Amazon Fire OS, Amazon Fire TV, Amazon Echo and services are Amazon Alexa, Amazon Web Services, Amazon Prime Video, Amazon Prime, Amazon Music, Amazon Appstore and Amazon.com.
Kmart is a subsidiary company of American origin that was founded in the year 1899 by its founder S S Kresge. It serves only in Guam, United States Virgin Islands, Puerto Rico and the United States with headquarters based at Hoffman Estates, Illinois in the United States. The popular brand has spread its presence with more than one hundred locations.
Since the year 2005, it was a subsidiary of its parent company Sears Holdings Corporation and from the year 2019 a subsidiary of Transform SR Brands. Kmart is associated with retail industry and deals in several products like pet products, appliances, automotive, hardware, sporting goods, food, toys, health and beauty, accessories, electronics, jewellery, bedding, footwear and clothing.
The top Costco competitor operates as a chain of big-box department stores that are very popular in the United States. The domain kmart.com has helped the brand in making a distinct name for itself in the retail world. Affordable and reasonable pricing policies have been one of the major reasons for the popularity of the brand.
By now you must have understood how all the Costco competitors fare in the market against each other. They must keep on engaging their customers so that their sales and revenues keep on rising and they can felicitate future growth and development.