Walmart focuses on price matching strategy with extensive variety of brands

and a strong online presence

Revenue (USD Billion)
• As of 2022, Walmart has 4,717 stores in US with 75% stores located
in south and west region and 5767 stores internationally
• Walmart has highest (140,000+) number of SKUs in US market 559 573 611
500 514 523
• Walmart has 3752 Supercenters, 364 discount stores and 781
neighborhood stores
• Walmart's annual reports reveal that the "Food & Consumables" 2018 2019 2020 2021 2022 2023
segment represents approximately 56% of its total revenue.
E- Commerce Business Operating Cost (USD Billion)
• In 2022, online sales accounted for approximately 15% or 24 billion
of Walmart's total revenue.
• Walmart has set a goal of having online sales account for 25% of its 492.0 502.4 536.5 547.1 591.0
479.6
total revenue by 2025
Customer Segmentation:
2018 2019 2020 2021 2022 2023
• Diverse mix of families, individuals, and budget-conscious consumers
having salaries around $80,000.
• Approximately 60% white, 20% Hispanic, 15% African American, 5%
Operating Profit (USD Billion)
other
• Broad range, families, young adults, budget-conscious
25.9
• The estimated average age range is 30 to 55 years 20.4 22.0 20.6 22.5 20.0
• As per ACSI in 2023, Walmart had a score of 72
2018 2019 2020 2021 2022 2023

Sources: Walmart Investor Relations, Statista, ACSI

 Kroger has traditional supermarket model focusing on Southeast and Mid-
Atlantic and aims to increase the number of active loyalty program members
• As of 2022, Walmart has 2723 stores in US with 75% stores located in Revenue (USD Billion)
south and west region and 5767 stores internationally
• 58% of Kroger's revenue comes from the Southeast and Mid-Atlantic
regions
• Kroger Plus Card with over 60 million active members: 133 138 148
123 122 122
• Kroger Plus Card members generate over 80% of Kroger's sales
• Kroger's website lists 69,793 products for sale online across 16
2018 2019 2020 2021 2022 2023
categories. Kroger's private label brands alone include over 30,000
SKUs.
Cost (USD Billion)
E- Commerce Business
• Kroger's digital sales grew by 11% in the second quarter of fiscal
2023
144.2
• Online grocery orders are estimated to reach 20% of total grocery 120.7 119.2 120.0 129.7 134.4

sales by 2025.
Customer Segmentation: 2018 2019 2020 2021 2022 2023
• Primarily families and individuals seeking value and quality having
salaries around $70,000.
Gross Profit (USD Billion)
• Approximately 62% white, 20% Hispanic, 12% African American, 6%
other
• Middle-income families, retirees 3.5
4.1
• The estimated average age range is 45 to 60 years 2.6 2.6 2.3 2.8

• As per ACSI in 2023, Walmart had a score of 76

2018 2019 2020 2021 2022 2023

Sources: Kroger Investor Relations, Macrotrends, ACSI, Kroger Annual

Report, Kroger Investor Presentation 2023, Ask Wonder
 Amazon has omnichannel strategy dominating E-commerce and is focusing
on innovation and data driven approach
Revenue (USD Billion)
• 77% of online shoppers in the US start their product searches on Amazon.
• Over 180 million members in US and 200 million Prime members
worldwide.
• Prime members spend an average of $1,400 annually on Amazon. 514 554
470
386
• Over 200 million unique monthly visitors to Amazon.com. 232 281
• Amazon's share of online retail sales in the US is currently 40%.
2018 2019 2020 2021 2022 2023
Innovation:
• Amazon invests over $60 billion in research and development annually. Cost (USD Billion)
• Holds over 90,000 patents worldwide.
• Continuously invests in AI, machine learning, and robotics to personalize
shopping experiences and optimize operations. 522
437 480
• Amazon's recommendation engine is responsible for 35% of Amazon's 257
353
215
product sales.
2018 2019 2020 2021 2022 2023
Customer Segmentation:
• Affluent and tech-savvy consumers, with a growing focus on younger Gross Profit (USD Billion)
generations having salaries around $100,000.
• Skews younger, with millennials and Gen Z as the largest demographic
groups
33 33 34 32
• Families with higher incomes, older millennials, Generation X 24
17
• The estimated average age range is 35 to 55 years
• As per ACSI in 2023, Walmart had a score of 84 2018 2019 2020 2021 2022 2023

Sources: Jumpshot , Statista, Macrotrends, ACSI, Similarweb, eMarketer,

Amazon, 2022 Annual Report, US Patent and Trademark Office
 BJ’s Club focuses on value pricing with presence in the East Coast and Mid-
Atlantic state sand caters to a more budget-conscious clientele.
• As of 2023, BJ’s Club has 235 stores in US with over 70% of its stores
located in East Coast and Mid Atlantic regions
Revenue (USD Billion)
• It has 5% market share in Wholesale market in US.
• The basic membership fee is $55/year as compared to Costco’s $60/year 19.3
15.4 16.7
and premium membership of $110/ year as compared to Costco’s 12.7 13 13.2
$120/year
• There was 8.33% increase in membership count in 2023 from 2022
2018 2019 2020 2021 2022 2023
• Data from 2022 shows that BJ's members spend an average of $1,607
annually, compared to Costco members who spend an average of $2,400
E- Commerce Business
Cost (USD Billion)
• BJ's reported that its e-commerce sales grew by 32% in the second
quarter of fiscal 2023 compared to the same period in the previous
year. 14.8 16.1 18.6
12.5 12.7 12.9
Customer Segmentation:
• Focuses on middle-income families and individuals seeking value and 2018 2019 2020 2021 2022 2023
convenience having salaries around $75,000
• Approximately 55% white, 25% Hispanic, 15% African American, 5%
Gross Profit (USD Billion)
other
• The estimated average age range is 25 to 44 years
• As per ACSI in 2023, Walmart had a score of 79 0.64 0.62
0.73

0.3 0.35
0.2

2018 2019 2020 2021 2022 2023

Sources: Macrotrends, ACSI, Zippia, Statista, BJ's Wholesale Club

Investor Relations Website, BJ's Wholesale Club Annual and Quarterly
 Sam’s Club is focusing on lower membership fee, wider online selection and
is investing in innovation & technology and self-checkout
• As of 2023, BJ’s Club has 600 stores in US with over 73% of its stores Revenue (USD Billion)
located in South East to South West Region
• It has 45% market share in Wholesale market in US. 84
74
• The membership fee is $45/year as compared to Costco’s $60/year 58 60 58 64
and there was 11.33% increase in membership count in 2023 from
2022 and generated 80% of its revenue from membership fee
2018 2019 2020 2021 2022 2023
Technology and Innovation
• The Sam’s Club app experienced tremendous growth last year with
Cost (USD Billion)
9.6 million downloads, almost twice as many downloads as
competitor apps, and it boasts a 4.9 app store rating
• Over 90% of Sam's Club locations have Scan & Go™ technology,
which allows customers to scan items and pay using their 69 80
53 56 53 59
smartphones
E- Commerce Business
• Sam's Club online sales grew by 25% in the second quarter of fiscal 2018 2019 2020 2021 2022 2023

2023
Customer Segmentation: Gross Profit (USD Billion)
• Similar to Costco, targeting affluent families and individuals seeking
value through bulk buying having salaries around $90,000.
• Approximately 60% white, 20% Hispanic, 10% African American, 10% 5
4
5 5 5
4
other
• The estimated average age range is 30 to 55 years
• As per ACSI in 2023, Walmart had a score of 80 2018 2019 2020 2021 2022 2023

Sources: Macrotrends, ACSI, Walmart Investor Relations, Statista, Sam's

Club 2023 Annual Report, Businesswire
Costco has the thirds highest gross profit margin increase and the least
decrease in operating margins as compared to its competitors

Gross Profit Margin of Costco and Operating Margin of Costco and Competitors
30.00%
Competitors from 2018 to 2023 from 2018 to 2023
25.00% 7.00%

2018 6.00% walmart

20.00% 2019 Kroger
2020 5.00% Amazon
15.00% 2021 Costco
4.00%
2022 Sam's Club
10.00% 2023 3.00% BjJ' Club

2.00%
5.00%
1.00%
0.00%
walmart Kroger Costco Sam's Club BjJ' Club 0.00%
2018 2019 2020 2021 2022 2023

Gross Profit Margin

The gross profit margins of the wholesale industry have been increasing and Costco has the third highest increase
following Sam’s club (2nd highest) and BJ’s Club (highest) from 2018 to 2023.
Operating Margins
When it comes to operating margins, there has been a slight decrease in it for the whole industry but Costco has
the minimum decrease of 0.60% from 2018 to 2023.