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Does Walmart Own Costco

By David Krug 3 minute read

Costco is similar to Sam’s Club in that it sells wholesale goods and requires a membership to shop.

In many ways, from the way their stores are set up to the products they sell and the prices they charge, they even appear comparable. Many individuals are beginning to wonder if Walmart and Costco are actually owned by the same entity. Here’s what I found out!

Do Walmart and Costco Own Each Other in the Year 2022?

According to a report in 2022, Walmart does not own Costco Wholesalers. Costco, the second-largest retail chain in the United States, is Walmart’s main rival. As a publicly traded company, Costco does not have a single owner but rather a board of directors and stockholders.

You may learn more about Walmart and Costco’s differences and competition by reading on.

For Costco’s main rivals, who are they?

Wal-biggest Mart’s rival is Costco, as previously noted. Walmart is Costco’s primary rival, and Costco is no exception. Walmart and Target are also competitors for Costco and Walmart.

Target’s higher dividend yield of 2.1% makes it a contender in Costco’s eyes. Costco’s dividend was 0.86 percent higher than Walmart’s, which was 1.78 percent higher.

While Walmart’s inventory turnover rate is eight, Costco has a turnover rate of 12. Both Walmart and Target are beaten by Costco.

Costco made $3.7 billion in profit, while Target made $2.9 billion, and Walmart made $14.9 billion in profit in 2020. However, there is a smaller rival to Costco.

Walmart’s Sam’s Club and Costco’s Differences

If you’re looking for a certain item, one of the three stores might be the best place to look.

Costco’s Gold Star membership costs $60, while the Executive membership costs $120.

Sam’s Club’s club level membership is $45 annually, while the Plus level membership costs $100. The following are some other differences:

  • There are three times as many customers shopping at Costco than there are at Sam’s Club.
  • Costco’s expansion has outpaced Sam’s Club’s.
  • Sam’s Club has fewer than half the number of locations that Costco does.
  • Costco’s average store size is 146,000 square feet, compared to Sam’s Club’s average of 133,000 square feet.
  • Sam’s Club is a Walmart subsidiary, whereas Costco is a publicly traded firm.
  • Shoppers often choose where to go shopping based on the convenience of their location.
  • More name brands can be found at Sam’s Club.
  • Costco has fewer locations in the US than Sam’s Club.
  • Costco has slightly lower costs than Sam’s Club and Walmart.

Is BJ’s Wholesale Club an Option?

In addition to BJ’s Wholesale, another competitor of Costco, only $187 million in net income is generated by BJ’s Wholesale.

There are many more, but this is a clear indication that Costco is the superior option. There are a few other things to keep in mind:

  • Costco has a better assortment and lower pricing, according to Consumer Reports.
  • Instead of a food court, BJ’s has a Dunkin’ Donuts.
  • Customers can save time by using self-checkout lanes at BJ’s.
  • Membership at BJ’s is $5 less than at Costco ($55 vs. $65).
  • While Costco does not mark its aisles, BJ’s aisles are more well labeled and arranged.
  • Costco offers a more comprehensive assortment of goods.
  • The meal costs at Costco’s food court have remained the same. Getting a hotdog, soda, and piece of pizza for less than $2 is possible.

More information about Walmart may be found in our previous postings on the firms that Walmart owns, the company’s competitive advantages, and whether or not Walmart is owned by China.

Bottom Line

If you’re looking to buy wholesale goods, Costco appears to be a great option, regardless of who owns it. When it comes to selection and location, Walmart’s (also known as Wally World) Sam’s Club has neither. Costco has lower costs than Walmart, but you’ll have to buy in bulk to get them.

David Krug