In terms of revenue, Walmart will be the largest company in the world in 2020, with $548.743 billion. Walmart is undoubtedly quite successful in this sense. But do you know which businesses compete with Walmart?
So continue reading to learn more about the top Walmart rivals that compete with Walmart in the retail business and provide discounts and cost-effective products.
How is Walmart different from its competitors
It has taken many years of hard work and careful planning for the company leadership at Walmart to get to the top of the retail industry.
Here are the elements contributing to Walmart’s competitive advantages over other companies and make it different from them:
- Cost leadership
- Elite Distribution Infrastructure
- Customer Service
- Advance use of automation
- Economies of Scale
- Financial strength
- International expansion
Who is Walmart’s biggest competitor
There are many participants in the US retail market, including Walmart, which dominates physical retail, and Amazon, which dominates online shopping.
The retail sector has experienced significant growth in recent years, primarily due to the expansion of e-commerce and increased spending due to rising employment and economic activity.
Walmart experienced a significant increase in its online commerce sales and revenue in fiscal 2020. In fiscal 2020, the company’s eCommerce revenue increased to $35.9 billion from $25.1 billion.
In the US, Walmart is up against several rivals, both large and small businesses. The following companies are Walmart’s main US rivals:
- The Kroger Company
- Home Depot
- Walgreens Boots Alliance
- Best Buy
How can small mom and pop stores compete with big box stores like Walmart
Small businesses that are independent or family-owned are referred to as mom-and-pop. It contrasts with large retail establishments like
Walmart, Home Depot, Starbucks, and Pizza Hut. Restaurants, grocery shops, repair shops, and a wide range of other enterprises are part of mom-and-pop stores.
The following strategies will help mom-and-pop stores compete with big-box giants:
Customer Service: Offering the lowest price while being profitable will be difficult. So, a small business can thrive in the competitive market depending on the excellent customer service. Small firms can establish a reputation with their clients. The capacity of small enterprises to establish relationships is superior to that of online shops and large corporations.
You may offer training or workshops, advice and consulting, or a guarantee for your product or service as ways to increase value and your level of customer service.
Testimonials: Before customers purchase or choose a new brand to support, they frequently read product and service reviews. Before making a purchase, the average consumer reads four product reviews. Add encouraging testimonials to your website to make the most of the feedback. Implement the procedure of asking your clients for feedback regularly. Putting up encouraging reviews can attract new clients. When a review is unfavorable, managers should respond politely.
Communication: When we are deliberate in our communication, expectations can be understood and met. Customer retention is higher for brands that choose to interact frequently and effectively. Customer satisfaction increases with effective communication that enables both parties to understand expectations. Customers who feel connected with a brand are more likely to remain loyal.
Online Sales: In most situations, mom-and-pop shops offer their products online. They may reach a wider customer base as a result. Online sales also involve proactively responding to SMS or social media messages asking for appointment times or other information. Online appointments for doctors are common. Small businesses can compete with major internet companies like Amazon by having an online store.
Engagement: Hold a gathering! Being a small local business gives you a special capacity to engage with and develop relationships with your clients. Live events and online webinars are excellent methods to interact with your audience. Mom-and-pop stores have the chance to provide unique customized experiences that will help their brand connect with consumers and stand out.
Service: Be prepared to service your consumers in various convenient and preferred ways. Online reservations or orders may fall under this category. Due to the pandemic, curbside pickup and delivery are becoming more popular among companies that offer their products in person. To come up with innovative customer service strategies, brainstorm with the staff. Detail is where the devil is at. To confirm appointments or the status of an order, consider text messaging.
Personalization: Incentives for customer loyalty and referrals are excellent ways to thank current clients. If at all feasible, use the consumers’ names when speaking to them. To add a more personalized touch to emails and postcards, ask your printer or marketing firm if they can personalize your greeting. Create a niche of your own! Small enterprises provide a lot of room for creativity and self-expression.
Security: Unlike major companies, mom-and-pop shops often do not have a loss management division. Small firms need to be aware of effective loss prevention techniques.
It can be beneficial to network with other business owners and exchange advice. We’ve all heard tales about how a dependable employee defrauded a nearby company out of thousands of dollars. Nobody wants to consider that this might ever occur to them as a business owner.
Loss avoidance could result in significant financial savings. Measures to protect valuables against intruders are a component of a loss prevention approach.
Data integrity and shoplifting are two additional security concerns that are crucial components of a loss prevention plan. The presence of checks and balances will help your small business compete with bigger ones.
Expand your area: Businesses that can not buy or rent a new space might want to look into alternative possibilities for growth.
How did Target come to be Walmart’s primary competitor
Because they both operate in a national retail environment and provide a wide selection of goods for customers of diverse tastes, styles, and budgets, Walmart and Target are competitors.
They give customers the best possible shopping experience with the newest technology available, including touch screen technology in stores. Also, their website is protected to the utmost extent. Forbes magazine listed Target in the top 10 worldwide web retailers in 2016.
Walmart Competitors In 2022
The largest retail chain Walmart has many competitors. Sam Walton established Walmart in 1962. Its headquarter is in Bentonville, Arkansas. The giant retailer sells various goods, including electronics, furniture, home appliances, medicines, building supplies, clothing, groceries, and more.
It serves more than 265 million people weekly and runs a powerful eCommerce platform. Walmart had 2.2 million employees worldwide and generated $524.4 billion in 2020. Its online sales increased by 42% during the three months.
Walmart sells goods online and in department stores. It is the owner of Sam’s Club, a membership retailer with facilities and shops all over the US, and Flipkart. Sam’s Club e-commerce sales increased by 47 percent in the first few months of 2021, while global e-commerce sales increased by 49 percent. Walmart must defend its market share from formidable rivals like Amazon, Target, Costco, and Home Depot.
Here is a detailed examination of Walmart’s rivals and alternatives:
Kroger is one of Walmart’s major rivals. It has more than 3,000 locations nationwide. The company, like Walmart, sells groceries and has a pharmacy at almost every location.
Additionally, Kroger offers a membership card for even greater savings. Kroger also sells household goods, toys, games, fuel, furniture, outdoor decor, and other reasonably priced items.
Kroger’s sales for 2020 were $122.286 billion. It is far less than Walmart’s, but it competes with Walmart in terms of prices and online shopping.
Costco is a membership-only wholesale retailer. It runs over 804 warehouses globally, including 558 in the US. Costco provides goods at affordable costs but in large quantities. In addition to the United States, Costco has warehouses in Australia, Iceland, Japan, South Korea, China, Canada, Mexico, the United Kingdom, South Korea, Taiwan, Spain, and France.
Costco provides a wide range of consumer goods, such as low-cost meat, sweets, jewelry, household goods, apparel, shoes, and gadgets.
Costco generated $122.14 billion in sales in 2020. It is significant for a membership-only retail establishment, mostly attributable to its progress in the e-commerce sector.
The e-commerce site Amazon has expanded significantly over the past ten years to rank among the top retail markets worldwide.
You may find anything you could want on Amazon, including gadgets, apparel, pet products, home goods, jewelry, books, toys, and games. Amazon has a limitless selection of goods. So if you’re going to purchase online, you’re more inclined to do so there. Additionally, Amazon frequently has lower prices than physical stores like Walmart.
The popularity of eBay has decreased somewhat over time. But it is still Walmart’s competitor as it sells consumer items, electronics, and other goods.
eBay is an auction site. You might have to spend more time than you would at Walmart for a given item. However, limited-edition items and collectibles that Walmart doesn’t carry are available on eBay.
5. Home Depot
Home Depot, the largest home improvement brand in the United States, competes directly with Walmart for consumer DIY products and domestic goods.
Home Depot had $132.1 billion in revenue in 2020. It is not nearly as much as Walmart but is still well within the range of being a major rival.
The grocery store business Albertsons competes with Walmart by giving customers discounts on a variety of goods for the home and kitchen.
Albertsons operates more than 2,200 stores around the country, bringing in more than $69 billion in revenue in 2020.
7. Giant Eagle
Giant Eagle is a network of supermarkets. They sell a wide variety of food items, including fresh and frozen foods, and are priced similarly to Walmart. They have more than 474 locations in select states, including West Virginia, Ohio, Pennsylvania, and Maryland.
Giant Eagle generated $9.7 billion in revenue in 2020, making it a preferred grocery store for residents of the Midwest.
Ikea is a well-known Swedish furniture company with more than 370 locations in 50 countries. Ikea’s online retail sales climbed by 45 percent in the fiscal year 2020, driven by a record 4 billion website visits. For 70 years, Ikea has been releasing its renowned annual catalog.
The 2016 Ikea Catalog was printed in 32 languages and delivered to more than 200 million homes across 50 markets. The final catalog was released in 2021. Ikea’s monopoly has hampered Walmart’s progress in the home furniture market. So, the biggest rival to Walmart in the furniture industry is Ikea.
With projected sales of $78 billion in 2020, Target would rank as one of the third-largest discount retailers globally. The business competes with Walmart offline and online. It runs 1,868 shops across North America. About 24% of its revenue comes from cosmetics, 20% from clothing, 20% from food & drink, and 19% from furniture for the home.
Target seized a $6 billion market share from rivals in 2020 and experienced a 20% revenue rise compared to Walmart’s 9% growth. In the US, Walmart makes nearly five times as much money as Target. Walmart’s US comparable sales decreased by 8.7% in 2020, while Target’s increased by 19.3%. Target is the ideal substitute and the second-best competition to Walmart.
More than 10 million people shop at Lowe’s every week. It’s a retailer that specializes in home renovation. It provides tools, building supplies, and other items for home remodeling. The corporation has about 290,000 employees and collaborates with more than 7,500 global vendors and suppliers.
Along with Home Depot, Lowe’s is one of the biggest merchants in this industry. The annual revenue of Lowe’s increased by 22% in 2020, while same-store sales increased by 23%. Lowe’s is the top Walmart rival and alternative in the home improvement industry.
11. Best Buy
Consumer electronics retailer Best Buy has 1779 locations in North America. The business installed ground-breaking ship-from-store features in 450 locations with four fulfillment centers. Due to the improved pickup and delivery services provided by Best Buy, domestic online sales increased by 242 percent to $5 billion.
In 2020, Best Buy generated $47.26 billion in revenue and $1.8 billion in profit. Best Buy’s annual revenue increased by 16.91% to $50.337 billion for the twelve months ended in April 2021. Best Buy will be Walmart’s main rival in 2021 due to its effective fulfillment approach and revenue growth.
12. Walgreens & Walgreens Boot Alliance
Walgreens is a chain of retail and wholesale pharmacies. It has about 18,750 locations throughout 11 nations and territories. Through 400 distribution hubs worldwide, it employs nearly 250,000 people and provides medications to more than 24,000 pharmacies yearly.
Walgreens’ overall revenue increased by 6% to $139.5 billion in 2020. However, from $6.0 billion in 2018 to $4.4 billion in 2020, the company’s net income fell by 30%. Walgreens has 120 years of industry experience and a market share of 19.1% compared to Walmart’s 4.7 percent. It is a trustworthy healthcare provider, making it a worthy top competitor to Walmart.
13. Reliance Retail (India)
Reliance Retail, which sells consumers groceries, shoes, household goods, electronics, toys, and farming supplies, is a significant rival of Walmart in India. Reliance Retail also offers incredibly low prices to compete with Walmart and get more customers into the store.
With a $22 billion revenue in 2020, Reliance Retail will be the largest retailer in India. Reliance Retail also operates an online marketplace to compete with Walmart even more.
14. Aldi (Headquartered in Germany)
The retail chain Aldi sells groceries, meals, fresh goods, and beverages. It serves almost 40 million people daily and runs over 10,000 locations across 20 different nations. The company’s high-quality goods and inexpensive costs provide them a competitive advantage over Walmart. Walmart, Aldi, and Kroger tied for the second-highest percentage of respondents in the 2021 Pulse Survey with 10% each, while Amazon came in third with 6%. Aldi is a legitimate top competitor to Walmart.
15. JD.com (China)
A Chinese online retailer named JD.com competes directly with Walmart. With more than 532 million clients, it is one of the biggest online merchants in China.
In 2020, JD, usually referred to as Jingdong, had a net income of 745.8 billion yuan. So, it’s a huge Chinese retailer that will grow and become more well-known over time.
One of the biggest food merchants in the world is the Carrefour Group. It’s a chain of supermarkets. With approximately 320,000 employees, it runs more than 13,000 multi-format stores across almost 30 countries. Carrefour saw a rise in online sales in 2020 and produced $95.85 billion in revenue.
The retail chain purchased Grupo BIG Brasil SA, the third-largest food store in Brazil, from Walmart and Advent International in March 2021. The 387 outlets and 35 membership-only Sam’s Club locations included in the $1.3 billion transactions expand Carrefour’s position in South America. In the international market, Carrefour may compete with Walmart.
17. Tesco (Headquartered in England)
Most of Tesco’s sales are made in the UK, where it operates the biggest supermarket chain and retailer. The multinational retailer runs more than 3,700 stores in the UK, Europe, and Asia. 18% of Tesco’s overall sales are in the category of groceries.
Tesco increased its sales by 7% to over $75 billion in 2020 and made $1.17 billion in profit. It boosted its online sales by 77 percent to $8.9 billion in 2020 by doubling its delivery capacity. In the UK, Tesco is a leading Walmart rival and substitute.
In the United States, CVS is a chain of pharmacies with 9,900 locations and 1,100 walk-in clinics. It competes with Walmart’s drugstores and provides services to 92 million members. In approximately 2020, CVS’s pharmacy and retail segments brought in $91 billion in sales.
Walmart has a market share of 4.7 percent compared to CVS’s 24.8 percent. Walmart is a significantly smaller drugstore operator than CVS, but despite this, it has a large market share.
The US government selected CVS and Walmart as two stores to lead a broad immunization campaign in February 2021. In 2021, CVS earned between $400 million and $500 million from tests and immunizations. Walmart’s main rival in the healthcare sector is CVS.
A global grocery chain based in Germany with a significant presence in Europe is known as Lidl. Its major rival is Aldi, although it also fiercely contends for Walmart’s market share in the US and Europe. By the end of 2021, Lidl intends to open 50 additional stores in the US, bringing its total to over 150.
Sales for the German discount retailer reached $9.78 billion in 2020, a rise of 9% over the previous year. The quick growth of Lidl in the US and Europe will give it a competitive advantage over Walmart.
21. Spinneys (Middle East)
With its main office in Dubai, United Arab Emirates, Spinneys is a network of supermarkets with more than 70 locations throughout the Middle East.
In addition, you may find Spinneys in several locations throughout the United Arab Emirates and Egypt, Lebanon, Qatar, and Pakistan.
21. Shufersal (Israel)
As of 2019, the Israeli grocery chain Shufersal had more than 378 locations. It offers a number of inexpensive goods and competes with Walmart in terms of grocery prices.
Furthermore, Shufersal generated $13.36 billion in revenue in 2019, which is astounding for a supermarket chain with just one location in Israel.
22. Ascena Retail Group
The parent business of Ann Inc. is the women’s clothing retailer Ascena Retail Group. Ann Inc. owns and operates Loft and Ann Taylor stores, making it Walmart’s direct rival for women’s and tween girl clothing.
In addition, Ascena Retail Group owns brands like Catherines and Lane Bryant, which will enable it to generate more than $3.718 billion in revenue in 2020.
A large retail company called Staples competes with Walmart in the markets for electronics, home goods, office supplies, and office furnishings. Staples has more than 1,000 locations worldwide and may be found in the US, Canada, Brazil, Argentina, and other countries.
Additionally, Staples’ sales in 2020 were close to $8.6 billion, and as more people get interested in technology and search for high-quality equipment, Staples’ revenue is anticipated to increase.
Both within the United States and abroad, Walmart faces numerous rivals. But Walmart’s greatest rivals are Kroger, Target, Amazon, and Costco. These shops provide a wide range of goods similar to Walmart, including food, electronics, home goods, and clothing.
Walmart, which is renowned for having extremely low prices everywhere in the store, is more competitive with stores like Costco, Kroger, and Target since they provide goods at lower prices.
Reliance Retail in India, Carrefour in France, and JD.com in China are all top rivals of Walmart internationally because they provide customers with similarly low costs. Does Walmart own Costco?