Retail Marketing

vs.

Cory Smith
Jennifer Yarrow
Alex Brenner
 Costco vs. Wal-Mart Facts
 Costco is #32 on the2007
Fortune 500
 Costco stores and locations:
 377 in the United States and
Puerto Rico
 71 in Canada
 30 in Mexico (50-50 joint
venture)
 19 in the United Kingdom
 5 in South Korea
 6 in Japan
 4 in Taiwan (One under
construction)
 2006 Net Sales: $60.2 Billion
 Wal-Mart is #1 on the 2007
Fortune 500
 Wal-Mart stores and locations:
 Wal-Mart Stores Division U.S:
~3,900
• Wal-Mart Discount Stores:
1,040
• Wal-Mart Supercenter:
2,326
• Wal-Mart Neighborhood
Markets: 118
• Sam’s Club (most
comparable to Costco): 584

Wal-Mart International: 2,701
 2006 Net Sales: $344.9 Billion
 Advertising Budget Facts
 “…Advertising Age estimated global
measured advertising expenditure of
$712m in 2005, making Wal-Mart the
world's #42 advertiser.”
 “…Costco is a $48 billion company that
spends nothing on advertising and
marketing.”
 Retail Strategies - Costco
 Costco
 “… Costco is a retail treasure hunt…”

 Upscale Clientele

• As a result Costco employees enjoy higher wages and better

benefits than other retailers.

Carry a limited number of products
• 3,700 – 4,500 Products per warehouse

Achieve sales through volume
• Costco average mark-up: 14%
• “If Costco can negotiate a favorable price it will purchase a large
quantity from that supplier”
 Retail Strategies – Wal-Mart
 Wal-Mart
 “Wal-Mart stands for low prices…”

 Serve those living paycheck to paycheck. (others invited as well)

 Two-thirds of Wal-Mart stores are in rural areas

• “80% of Wal-Mart’s square footage is in the 25% of zip codes with

the greatest number of poor households”

Offer Variety
• Wal-Mart typically carries 100,000 products, marked up ~25% on
average.

Achieve sales through volume
• Wal-Mart controls costs, allowing it to charge lower prices than its
competitors and still maintain high profits.
 Resources
 http://www.walmartfacts.com/
 http://www.costco.com
 http://www.walmartstores.com/
 NY Times Article
 http://www.bosslady.ca/2006/09/tips_on_defining_your_target
 http://en.wikipedia.org/wiki/Costco
 http://en.wikipedia.org/wiki/Walmart