Walmart’s biggest competitors are Amazon, now slightly larger by revenue ($716.9B in 2025 vs Walmart’s $713.2B), Costco ($303.2B) and Target ($104.8B). Amazon earns a much higher operating margin (11.2%), largely from AWS; among store-based rivals Target’s margin (4.9%) is above Walmart’s (4.2%) and Costco’s (3.9%).
Sources: each company’s latest Form 10-K (SEC EDGAR): Walmart, Amazon, Costco, Target. Analysis by The Business Engineer.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
Walmartโs rivals: same sales as Amazon, a fraction of the margin. Source: Walmart Form 10-K, fiscal 2026 (price leadership, grocery share, comparable sales); Amazon Form 10-K 2025; Costco Form 10-K, fiscal 2026 (52 weeks to 30 Aug 2026); Target Form 10-K, fiscal 2025; all SEC EDGAR. Fiscal years differ as labelled. Margins and multiples calculated. Bars to scale. Analysis by The Business Engineer.
Amazon sells as much as Walmart but earns 2.7ร the operating income, because AWS and advertising carry far higher margins than retail (Amazon 10-K). See Amazon vs Walmart.
Target is a seventh of Walmart’s size and its sales fell 1.7% last year, with comparable sales down 2.6% (Target 10-K). See Target vs Walmart.
What to watch
The Amazon race: Amazon’s Q2 2026 net sales were $200.6B, +19.6%; Walmart’s Q2 FY27 revenue $187.9B, +5.9%.
Membership models: Walmart’s membership fee income grew 17% in Q2 FY27 (Q2 fiscal 2027 release); Costco’s renewal rate is 92.3% in the U.S. and Canada.
Advertising: Walmart’s ad business grew 38% in Q2 FY27.
Earlier analysis and background (pre-2026 figures)
The text below is the earlier version of this page. Its figures refer to earlier periods and some were corrected above; the current, sourced figures are in the sections above.
Competitive Landscape
Walmart vs. Competitors
Key players competing across Walmart’s core markets
Key Competitive Overlaps
โ
Amazon
Both compete in e-commerce, online retail, and cloud computing, but Amazon has a broader range of services and a global reach.
โ
Target
Both compete in the general merchandise and retail market, with a focus on offering a diverse selection of products to consumers.
โ
Costco Wholesale
Both compete in the wholesale and warehouse club market, targeting customers seeking savings on bulk purchases.
โ
Kroger
Both compete in the grocery and supermarket sector, providing a range of food products, but Kroger specializes in groceries.
โ
Home Depot
Both compete in the home improvement and DIY market, offering products and services for home renovation and maintenance.
โ
Lowe’s
Both compete in the home improvement and DIY market, providing products and services for home renovation and repair.
โ
Dollar General
Both compete in the discount retail market, offering budget-friendly products, but Dollar General has a focus on smaller communities.
โ
Walgreens
Both compete in the pharmacy and retail market, offering healthcare products and prescription services, but Walgreens specializes in pharmac
โ
CVS Health
Both compete in the pharmacy and healthcare market, offering prescription services and healthcare products, with CVS Health having a focus o
โ
Best Buy
Both compete in the consumer electronics and technology market, providing a range of technology and entertainment products.
Walmart faces competition from a range of competitors in the retail industry. General merchandise retailers like Target and Costco, grocery retailers like Kroger and Albertsons, online giants like Amazon and eBay, and specialty retailers such as Best Buy and Bed Bath & Beyond are among its key competitors. Additionally, it faces competition from home improvement retailers, fashion retailers, online marketplaces, wholesale clubs, pharmacy chains, and international retailers.
Description: A multinational e-commerce and technology company offering a wide range of products, services, and online marketplace operations. Amazon competes with Walmart in various retail and e-commerce segments.
Key Insights:Amazon operates a vast online marketplace, offering products, streaming services, cloud computing, and more. It competes with Walmart in e-commerce and cloud computing, among other areas.
Competitive Overlap: Both compete in e-commerce, online retail, and cloud computing, but Amazon has a broader range of services and a global reach.
Differentiation: Amazon’s extensive product selection, Prime membership, and cloud services.
Target
Description: A large American retail corporation offering a wide range of products, including clothing, electronics, groceries, and home goods. Target competes with Walmart in the general merchandise and retail market.
Key Insights: Target operates retail stores and an online platform, selling a variety of products, often emphasizing stylish and affordable merchandise.
Competitive Overlap: Both compete in the general merchandise and retail market, with a focus on offering a diverse selection of products to consumers.
Differentiation: Target’s reputation for stylish and affordable merchandise.
Costco Wholesale
Description: A membership-based American retail corporation known for selling bulk quantities of products at low prices. Costco competes with Walmart in the wholesale and warehouse club market.
Key Insights: Costco offers a membership-based shopping experience with bulk quantities of products at competitive prices, appealing to businesses and consumers.
Competitive Overlap: Both compete in the wholesale and warehouse club market, targeting customers seeking savings on bulk purchases.
Differentiation: Costco’s membership model and focus on bulk quantities.
Kroger
Description: An American retail company operating a chain of supermarkets, convenience stores, and other grocery-related businesses. Kroger competes with Walmart in the grocery and supermarket sector.
Key Insights: Kroger operates supermarkets and offers groceries, organic foods, and convenience store products, focusing on providing a wide variety of food options.
Competitive Overlap: Both compete in the grocery and supermarket sector, providing a range of food products, but Kroger specializes in groceries.
Differentiation: Kroger’s focus on a wide variety of food options and convenience.
Home Depot
Description: An American home improvement retail company offering a range of products for home renovation, construction, and maintenance. Home Depot competes with Walmart in the home improvement and DIY market.
Key Insights: Home Depot provides products and services for home improvement, including tools, materials, and appliances, targeting DIY enthusiasts and contractors.
Competitive Overlap: Both compete in the home improvement and DIY market, offering products and services for home renovation and maintenance.
Differentiation: Home Depot’s specialization in home improvement and contractor services.
Lowe’s
Description: An American home improvement and appliance retail company similar to Home Depot, offering products for home renovation and repair. Lowe’s competes with Walmart in the home improvement and DIY market.
Key Insights: Lowe’s operates retail stores and offers home improvement products, appliances, and services, catering to homeowners and contractors.
Competitive Overlap: Both compete in the home improvement and DIY market, providing products and services for home renovation and repair.
Differentiation: Lowe’s focus on home improvement and appliance sales.
Dollar General
Description: An American chain of variety stores offering a range of low-priced products, including household essentials, groceries, and personal care items. Dollar General competes with Walmart in the discount retail market.
Key Insights: Dollar General operates stores providing a wide range of low-priced products, often located in smaller communities and rural areas.
Competitive Overlap: Both compete in the discount retail market, offering budget-friendly products, but Dollar General has a focus on smaller communities.
Differentiation: Dollar General’s presence in smaller communities and rural areas.
Walgreens
Description: An American pharmacy retail chain offering prescription medications, health and wellness products, cosmetics, and convenience items. Walgreens competes with Walmart in the pharmacy and retail market.
Key Insights: Walgreens operates pharmacies and retail stores, providing healthcare products, prescription medications, and convenience items.
Competitive Overlap: Both compete in the pharmacy and retail market, offering healthcare products and prescription services, but Walgreens specializes in pharmacy and convenience items.
Differentiation: Walgreens’ focus on pharmacy services and healthcare products.
CVS Health
Description: An American pharmacy retail corporation that operates pharmacies, retail stores, and healthcare clinics. CVS Health competes with Walmart in the pharmacy, healthcare, and retail market.
Key Insights: CVS Health provides prescription medications, healthcare services, retail products, and operates MinuteClinic healthcare clinics.
Competitive Overlap: Both compete in the pharmacy and healthcare market, offering prescription services and healthcare products, with CVS Health having a focus on healthcare services.
Differentiation: CVS Health’s extensive healthcare services, including MinuteClinics.
Best Buy
Description: An American multinational consumer electronics retailer selling a variety of technology and entertainment products. Best Buy competes with Walmart in the consumer electronics and technology market.
Key Insights: Best Buy offers electronics, appliances, and tech-related products, with a focus on consumer electronics and home technology solutions.
Competitive Overlap: Both compete in the consumer electronics and technology market, providing a range of technology and entertainment products.
Differentiation: Best Buy’s specialization in consumer electronics and technology solutions.
FourWeekMBABusiness EngineerAt a glance
Amazon competes with Walmart in various retail and e-commerce segments.
Costco offers a membership-based shopping experience with bulk quantities of products at competitive prices, appealing to businesses and consumers.
Dollar General operates stores providing a wide range of low-priced products, often located in smaller communities and rural areas.
CVS Health provides prescription medications, healthcare services, retail products, and operates MinuteClinic healthcare clinics.
Layout refreshed 6 October 2026. The article text below is unchanged.
Why it mattersFrom the article
Both compete in e-commerce, online retail, and cloud computing, but Amazon has a broader range of services and a global reach.
Both compete in the discount retail market, offering budget-friendly products, but Dollar General has a focus on smaller communities.
Both compete in the pharmacy and healthcare market, offering prescription services and healthcare products, with CVS Health having a focus on healthcare services.
General Merchandise Retailers:
Target: A major retail chain offering various products and services.
Costco: A membership-based warehouse retailer selling a range of items.
Kmart: A retail chain providing a diverse selection of products.
Grocery Retailers:
Kroger: A supermarket chain offering groceries and other household items.
Albertsons: A retail company operating grocery stores and pharmacies.
Publix: A supermarket chain providing a range of grocery products.
Online Retailers:
Amazon: A multinational technology company and online marketplace.
eBay: An online auction and shopping website.
Alibaba: A Chinese multinational conglomerate operating various online platforms.
Home Improvement Retailers:
The Home Depot: A home improvement retailer offering construction and DIY products.
Lowe’s: A retail company selling home improvement and appliance products.
Menards: A chain of home improvement stores operating in the Midwest.
Fashion Retailers:
Target: A major retail chain offering a diverse range of fashion products.
Kohl’s: A department store chain with a focus on apparel and accessories.
TJ Maxx: An off-price retailer offering discounted fashion and home goods.
Specialty Retailers:
Best Buy: A retailer specializing in consumer electronics and appliances.
Bed Bath & Beyond: A chain of retail stores offering home goods and decor.
Barnes & Noble: A bookseller operating both physical stores and an online platform.
Online Marketplaces:
Etsy: An e-commerce website focused on handmade and vintage items.
eBid: An online auction and marketplace platform.
Bonanza: An online marketplace for unique and collectible items.
Wholesale Clubs:
Sam’s Club: A membership-only retail warehouse club.
BJ’s Wholesale Club: A membership-based warehouse club chain.
Costco: A membership-based warehouse retailer selling a range of items.
Pharmacy Chains:
CVS Health: A retail pharmacy and healthcare company.
Walgreens Boots Alliance: A pharmacy chain with a global presence.
Rite Aid: A chain of pharmacies and health and wellness stores.
International Retailers:
Carrefour: A multinational retail corporation operating in various countries.
Tesco: A multinational grocery and general merchandise retailer.
Aldi: A global discount supermarket chain.
Key Highlights:
General Merchandise Retailers Competition: Walmart competes with general merchandise retailers like Target, Costco, and Kmart, which offer a wide range of products and services.
Grocery Retailers Rivals: Competitors in the grocery retail sector include Kroger, Albertsons, and Publix, providing groceries and household items.
Online Retailers Challengers: Online giants like Amazon, eBay, and Alibaba are competitors in the online retail space.
Home Improvement, Fashion, and Specialty Retailers Alternatives: Walmart faces competition from home improvement retailers (The Home Depot, Lowe’s), fashion retailers (Kohl’s, TJ Maxx), and specialty retailers (Best Buy, Bed Bath & Beyond).
Online Marketplaces and Wholesale Clubs Competition: Walmart’s competitors also include online marketplaces (Etsy, eBid, Bonanza) and wholesale clubs (Sam’s Club, BJ’s Wholesale Club, Costco).
Pharmacy Chains and International Retailers Rivals: CVS Health, Walgreens Boots Alliance, Rite Aid, Carrefour, Tesco, and Aldi are also competitors in the pharmacy, healthcare, and international retail segments.
As of 2022, 2,751,779,629 Shares were outstanding for Walmart. The company’s major shareholder is the Walton family, whose mission is to “help people around the world save money and live better โ anytime and anywhere โ in retail stores and through eCommerce.” While its vision is to “make every day easier for busy families.” Walmart defines “busy families” as the bull’s eye of its business strategy. From humble beginnings just over 50 years ago, Walmart’s business model has become the worldโs largest retail company.
With over $611 billion in net sales in 2023, Walmart operates a differentiated business model with three primary units: Walmart U.S., Walmart International, Sam’s Club (a membership-only warehouse club), and Walmart+. This subscription service includes free shipping, unlimited delivery from its stores, and discounts launched in 2021. The company reported a net income of $11.68 billion in 2023.
Walmart generated $611.29 billion in revenue in 2023 and $11.68 billion in profits, compared to $572 billion in revenue in 2022 and over $13.6 billion in net profits in the same year. Compared to over $559 billion in revenue in 2021 and over $13.5 billion in net profits.
In 2023, Walmart reported 240 million customers compared to 230 million global customers in 2022, 240 million customers in 2021, and 265 million customers in 2019.
Walmart had 2.1 million associates globally in 2023, compared to 2.3 million associates globally in 2022, the same number in 2021. In 2020, Walmart had 2.2 million associates globally.
Walmart’smission can be summarized as “helping people around the world save money and live better โ anytime and anywhere โ in retail stores and through eCommerce.” While its vision is to “make every day easier for busy families.” Walmart defines “busy families” as the bull’s eye of its business strategy.
Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches. On the one hand, Walmart follows a hierarchical structure, where the current CEO Doug McMillon is the only employee without a direct superior, and directives are sent from top-level management. On the other hand, the function-based structure of Walmart is used to categorize employees according to their particular skills and experience.
From humble beginnings just over 50 years ago, Walmart has become the worldโs largest retail company. A single small discount store in Arkansas has now expanded to over 11,000 stores in 28 countries. Some reports suggest that the company makes $1.8 million of profit every hour.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
