Ava AbbottWalmart Competitors and Alternatives is the world’s largest retailer chain more than 11,500 stores in 27 countries. It is based in Bentonville, Arkansas, and was founded by Sam Walton in 1962. The retail giant offers a wide range of products, including electronics, furniture, home appliances, drugs, construction materials, clothes, groceries, and more.
It operates a robust eCommerce platform and serves over 265 million customers per week. Walmart employs around 2.2 million people globally and generated $524.4 billion in annual revenues in 2020. Its e-commerce sales jumped by 42% in the last three months. [1]
Walmart sells products via department stores and an eCommerce site. It owns Flipkart and Sam’s Club, a membership retailer with warehouses and stores across the US. In the first few months of 2021, Walmart saw a 47% growth in Sam’s Club e-commerce sales and a 49% surge in global e-commerce sales. To protect its market share, Walmart has to fend off strong competitors like Amazon, Target, Costco, and Home Depot. [2]
Here is an in-depth analysis of Walmart’s competitors and alternatives:
1. Amazon
Year founded: 1994
Headquarter: Seattle, Washington
Amazon is a global eCommerce powerhouse and Walmart’s top competitor. In 2020, Walmart Marketplace reached 70,000 sellers and is expected to grow 146% by the end of 2022. Despite this success, Amazon still dwarfs Walmart Marketplace. Amazon has over 2 million sellers on its US third-party store and generated $189 billion in revenues in 2020 from the market. Projections indicate that Amazon will reach 7.5 million sellers globally by the end of 2022. [3]
Walmart’s US e-commerce business surged by 79%, but it remains far behind and won’t catch up to Amazon any time soon. Amazon expects to generate $367.2 billion in sales in 2021, nearly six times more than Walmart’s $64.6 billion e-commerce sales. Amazon already generates 40% of all e-commerce sales in the US. It is Walmart’s top competitor for many reasons. [4]
2. Target
Year founded: 1902
Headquarter: Minneapolis, Minnesota
Target is one of the third largest discount retailers globally, with $78 billion in revenues in 2020. The retailer operates 1,868 stores across North America and competes with Walmart both offline and online. About 24% of its income comes from beauty care products, 20% from apparel, 20% from food & beverage, and 19% from home furniture.
In 2020, Target grabbed $6 billion worth of market share from competitors and saw a 20% revenue growth versus Walmart’s 9% growth. Walmart generates almost five times more revenues than Target in the US. Target’s comparable sales of 19.3% outperformed Walmart’s US comp sales of 8.7% in 2020. Target the second top Walmart competitor and the perfect alternative. [5]
3. Costco
Year founded: 1983
Headquarter: Issaquah, WA
Costco is a members-only wholesale retailer and competes with Walmart and its subsidiaries. Like Sam’s Club, Costco offers a variety of products through warehouses and eCommerce platforms. The wholesale giant operates 804 stores globally with 558 in the US. and generated $163 billion in revenues in 2020. It reached 107.1 million cardholders in 2020 with a 90% membership renewal rate.
Costco’s 2020 annual sales were about a quarter of Walmart’s. It has less than one-fifth of Walmart’s store count. However, Costco opened 16 stores in 2020 and plans to open between 20 and 22 in 2021. Costco appeals to value-oriented consumers, making it a top Walmart competitor. [6]
4. Kroger
Year founded: 1883
Headquarter: Cincinnati, Ohio
Kroger is one of the world’s largest food retailers. It generated $132.5 billion in sales for fiscal 2020 ended in April 2021, an increase of 8.4% y-o-y. The retailer operates 2,764 department stores in the United States and employs 450,000 people.
Kroger developed fulfillment centers, which cost over $50 million each. According to Kroger CEO Rodney McMullen, the new fulfillment centers will double Kroger’s $10 billion in digital sales by the end of 2023. Kroger is one of Walmart’s top competitors for many reasons. [7]
5. Alibaba
Year founded: 1999
Headquarter: Zhejiang, China
Alibaba is one of the world’s largest eCommerce giants. It competes against Walmart in the global arena via Alibaba.com, which operates in over 200 countries. In 2019, Alibaba.com opened its marketplace for American suppliers. It attracted more than 10 million businesses within one year.
In 2021, Alibaba posted its first operating loss since going public in 2014. The loss includes a $2.8 billion fine imposed on Alibaba by China’s market regulator for anti-competitive practices. The company forecasts strong 2022 revenue and continues to attract more American sellers. It is one of Walmart’s top e-commerce competitors. [8]
6. Home Depot
Year founded: 1978
Headquarter: Atlanta, Georgia
Home Depot is a specialist in home improvement and operates about 2,269 stores worldwide. The company offers construction materials, tools, fittings, lawn and garden products, and more. In 2020, Home Depot’s revenues jumped nearly 20% to $132.1 billion with $12.9 billion in profits.
Its interconnected One Home Depot strategy and investments in fulfillment centers increased same-store sales by 25%. The retailer’s innovative eCommerce strategy gives it an edge. Home Depot is Walmart’s top competitor in the home improvement sector. [9]
7. Best Buy
Year founded: 1966
Headquarter: Richfield, Minnesota
Best Buy is a consumer electronics retailer with 1779 stores in North America. The company implemented innovative ship-from-store capabilities in 450 stores with four fulfillment hubs. This integrated strategy boosted Best Buy’s pickup and delivery capabilities, leading to a 242% increase in domestic online sales to $5 billion.
Best Buy’s annual revenue for 2020 was $47.26 billion with $1.8 billion in profits. For the twelve months ending April 2021, Best Buy generated $50.337 billion in revenues, a 16.91% increase year-over-year. Best Buy’s robust fulfillment strategy and revenue growth make it Walmart’s top competitor in 2021. [10]
8. CVS Health Corporation
Year founded: 1963
Headquarter: Woonsocket, RI
CVS is a pharmacy chain with 9,900 stores and 1,100 walk-in medical clinics in the United States. It serves 92 million members and competes against Walmart’s drugstores. In 2020, CVS generated $91 billion in retail and pharmacy revenues. Currently, CVS holds 24.8% of the market versus 4.7% for Walmart. Even though Walmart is a much smaller pharmacy operator, its strong market presence threatens CVS’s dominance.
In February 2021, CVS and Walmart were among the retailers chosen by the US government to spearhead a nationwide vaccination drive. CVS will accumulate $400-$500 million in profits from tests and vaccinations in 2021. In the health care business, CVS is Walmart’s top competitor. [11]
9. Walgreens
Year founded: 1901
Headquarter: Deerfield, Illinois
Walgreens is a retail and wholesale pharmacy chain with around 18,750 stores in 11 countries and territories. It employs close to 250,000 people and supplies pharmaceuticals to more than 24,000 pharmacies annually through 400 distribution centers worldwide.
In 2020, Walgreens’ total revenue grew 6% to $139.5 billion. However, the company saw a 30% decline in net income from $6.0 billion in 2018 to $4.4 billion in 2020. Walgreen holds 19.1% of the market versus 4.7% for Walmart and has 120 years of experience in the sector. It is a reliable and trusted healthcare provider than Walmart, making it a worthy top competitor. [12]
10. Tesco
Year founded: 1919
Headquarter: Hertfordshire, UK
Tesco is the largest supermarket chain and retailer in the UK, where it generates nearly 80% of its revenues. The retail giant operates more than 3,700 locations in the UK, Europe, and Asia. Online grocery sales make up 18% of Tesco’s total revenues.
In 2020, Tesco saw a 7% increase in sales to more than $75 billion and accumulated $1.17 billion in profits. It doubled its delivery capacity in 2020, which increased its online sales by 77% to $8.9 billion. Tesco is a top Walmart competitor and alternative in the UK. [13]
11. IKEA
Year founded: 1943
Headquarter: Conshohocken, Pennsylvania
Ikea is an iconic Swedish furniture retailer with more than 370 stores across 50 countries globally. In the fiscal year 2020, Ikea’s online retail sales increased by 45%, driven by a record 4 billion visits to its website. Ikea has been publishing its world-famous annual catalog for 70 years.
The record-breaking 2016 Ikea Catalog was printed in 32 languages and sent to more than 200 million homes in 50 markets. The company announced that the 2021 catalog would be the last one. Ikea’s dominance of the home furniture sector has impeded Walmart’s success. Ikea is the top Walmart competitor in the furniture business. [14]
12. Lowe’s
Year founded: 1946
Headquarter: Mooresville, North Carolina
Lowe’s specializes in home improvement and serves over 10 million customers per week. It offers construction materials, tools, and other products for home improvement. The company employs around 290,000 people and works with more than 7,500 vendors and suppliers worldwide.
Lowe’s is one of the largest retailers in this sector, along with Home Depot. In 2020, Lowe’s saw a 22% increase in annual revenue and a 23% surge in same-store sales. Lowe’s is a top Walmart competitor and alternative in the home improvement business. [15]
13. eBay
Year founded: 1995
Headquarter: San Jose, California
eBay is an eCommerce platform with a marketplace for sellers like Amazon and an auction site. Businesses and consumers can auction new and second-hand clothes, electronics, and more.
In 2020, active eBay sellers grew 8% to 20 million globally, and buyers surged 7% to 187 million globally. Its revenues rose 42% in the first few months of 2021. eBay is attracting more small and medium businesses, which threatens Walmart Marketplace. [16]
14. Instacart
Year founded: 2012
Headquarter: San Francisco, California
Instacart offers on-demand food delivery services in over 5,500 cities and towns in North America. The online grocery giant witnessed tremendous growth in 2020. From March 2020 to April 2021, Instacart added more than 300,000 personal shoppers and has 500,000 active shoppers. It is now available to around 85% of American households.
Instacart partners with more than 600 retailers and delivers from around 45,000 stores. In March 2021, it raised $265 million in the latest funding, increasing its valuation to $39 billion. Instacart threatens Walmart’s share of the online grocery market. [17]
15. Carrefour Group
Year founded: 1960
Headquarter: Boulogne-Billancourt, France
Carrefour Group is a supermarket chain and one of the world’s leading food retailers. It operates more than 13,000 multi-format stores in around 30 countries and employs over 320,000 people. In 2020, Carrefour generated $95.85 billion in revenues and witnessed a surge in online sales.
In March 2021, the retail chain acquired Grupo BIG Brasil SA, Brazil’s third-biggest food retailer, from Walmart and Advent International. The $1.3 billion acquisition includes 387 stores and 35 Sam’s Club membership-only stores and strengthens Carrefour’s presence in South America. Carrefour can give Walmart a run for its money in the global arena. [18]
16. Aldi
Year founded: 1974
Headquarter: Essen, North Rhine-Westphalia, Germany
Aldi is a retail store chain that offers grocery, food, fresh products, and beverages. It operates more than 10,000 stores in 20 countries and serves around 40 million customers daily. The company’s competitive edge over Walmart is its high-quality products and low prices. In a 2021 Pulse Survey, 33% of respondents said Walmart offered value for money, Aldi and Kroger tied at 10%, and Amazon was third with 6%. Aldi is a worthy top Walmart competitor. [19]
17. Kohl’s Corp
Year founded: 1962
Headquarter: Menomonee Falls, Wisconsin
Kohl’s is a department store and retail chain in the United States. It offers apparel, footwear, beauty care, accessories, and home products via 1,160 department stores, kohls.com, and 12 FILA outlets. The company’s brand names include Apt. 9, Croft & Barrow, Jumping Beans, SO, Food Network, LC Lauren Conrad, Simply Vera, and Sonoma Goods for Life.
Kohl’s has been struggling with declining sales in the past two years. In Feb 2021, the board of directors recommended restructuring to unlock $7-8 billion trapped in non-core, non-earning real estate assets. Despite the challenges, Kohl’s has a wide variety of reputable brands and can poach Walmart’s customers. [20]
18. Whole Foods
Year founded: 1980
Headquarter: Austin, Texas
Whole Foods is a supermarket chain that offers groceries and organic food products. Amazon acquired the grocer in 2017 for $13.7 billion. Amazon’s backing boosts its competitive edge over Walmart. In 2021, Whole Foods announced plans to streamline store operations.
It also adopted Amazon One palm-scanning payment service. Whole Foods is a specialist in the grocery business, making it a worthy top Walmart competitor. [21]
19. BJ’s Wholesale Club
Year founded: 1984
Headquarter: Westborough, Massachusetts
BJ’s Wholesale Club is a members-only retailer. It has more than 200 self-service warehouses across the US. The company generated $15.43 billion in revenues in 2020 and saw a slight increase in sales in 2021. It charges a $55 annual membership fee and competes directly with Walmart-owned Sam’s Club.
In the first nine months of 2020, BJ’s membership program added over 500,000 new members. The retailer offers over 7,200 varieties of fairly-priced products. It can entice value-centric customers from Sam’s Club. BJ’s is the perfect alternative to Sam’s Club and a top Walmart competitor. [22]
20. Lidl
Year founded: 1973
Headquarter: Neckarsulm, Germany
Lidl is a German supermarket chain that operates globally, with a strong market presence in Europe. Aldi is its main competitor, but it also competes aggressively for Walmart’s market share in Europe and the US. Lidl opened 50 new stores in the UK in 2020 and plans to open 50 stores in the United States by the end of 2021, taking its total to more than 150.
The German discount chain generated $9.78 billion in sales in 2020, representing an increase of 9% year-over-year. Lidl’s rapid expansion in the US and Europe will increase its competitive edge over Walmart. [23]
References & more information
- Repko, M. (2021, Feb 18). Walmart shares fall on earnings miss, the retailer sees sales growth slowing in the coming year. CNBC
- Grothaus, M. (2021, May 18). Walmart Q1 2021 earnings: retail giant beats on revenue and EPS as e-commerce sales soar. Fast Company
- Naidu, R. (2021, April 14). How the pandemic helped Walmart battle Amazon Marketplace for sellers. Reuters
- Wahba, P. (2021, March 29). Despite its best efforts, Walmart’s e-commerce is still a fraction of Amazon’s. Fortune
- Great Speculations (2021, May 3). Is Target Stock A Better Buy Compared To Walmart Stock? Forbes
- Saibil, J. (2021, Apr 9). Where Will Costco Be in 1 Year? The Motley Fool
- Bloomberg (2021, April 15). Kroger Is Amassing a Robot Army to Battle Amazon, Walmart. Supply Chain Brain
- Mehta, C. (2021, May 13). Anti-monopoly fine pushes Alibaba to first operating loss as a public company. Reuters
- Allison, D. (2021, Feb 23). Home Depot says 2020 revenues soared 20% as investments drove sales. Business Chronicle
- Walton, C. (2020, Dec 15). How Best Buy Used Its Retail Smarts To Stand Out In 2020. Forbes
- Wahba, P. (2021, March 26). What CVS and Walgreens stand to gain from the vaccine rollout? Fortune
- Great Speculations (2021, Apr 23). What’s next for Walgreens Stock? Forbes
- Partridge, J. (2021, April 14). Tesco profits fall as Covid costs offset sales surge. The Guardian
- Wahba, P. (2020, Dec 7). Ikea to stop publishing its iconic catalog after 70 years. Fortune
- Repko, M. (2021, Dec 9). Lowe’s steps up plans to gain market share reiterate the fiscal 2020 forecast. CNBC
- PYMNTS (2021, April 29). eBay Joins Growing List of Online Retailers to Say Post-COVID Growth Will Slow. PYMNTS
- Redman, R. (2021, April 28). Instacart’s campaign turns the spotlight on its personal shoppers. Supermarket News
- Business Wire (2021, March 25). Carrefour to acquire Walmart’s Grupo BIG in Brazil. Blue Book Services
- Bridget Goldschmidt, B. (2021, April 7). Walmart, Aldi, Kroger, and Amazon Are Tops for Value. Progressive Grocer
- Squire, K. (2021, Mar 6). What’s behind the campaign to force changes at Kohl’s? CNBC
- Redman, R. (2021, May 14). Whole Foods Market to consolidate some operations. Supermarket News
- Bonacci, S. (2021, May 20). BJ’s Wholesale Club declines to give 2021 guidance even as sales increase. Worcester Business Journal
- Farrell, S. (2021, March 25). 20 new stores in one month help Lidl hit the target despite the pandemic. The Grocer
- Featured image by Marques Thomas @querysprout.com
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Kevin Johnson
S.K. Gupta
So not really smaller companies, for those looking to go away from Walmart (Amazon, Target, whoever) in an effort to support smaller competitors.