Costco tends to focus its locations in large municipalities with high throughput, while Walmart built its business model on rural monopolization of retail where it could be feast or famine any given week. Costco optimized around sales flow, while Walmart optimized around margin per unit sold.
Both have been incredibly profitable over their lifetimes. Both have benefited from cities and states effectively paying subsidies to attract Big Box retailers that would drive out their smaller competitors. Both are, fundamentally, capitalist enterprises fixated on maximizing profit surplus.
The “problems” Walmart faces are problems pushed onto staffers and shoppers in markets where retail sales have declined. The “solutions” that Costco landed on only seem to work in wealthier and denser neighborhoods, where retail sales jobs are still the bottom rung of the economy.
Costco tends to focus its locations in large municipalities with high throughput, while Walmart built its business model on rural monopolization of retail where it could be feast or famine any given week. Costco optimized around sales flow, while Walmart optimized around margin per unit sold.
Both have been incredibly profitable over their lifetimes. Both have benefited from cities and states effectively paying subsidies to attract Big Box retailers that would drive out their smaller competitors. Both are, fundamentally, capitalist enterprises fixated on maximizing profit surplus.
The “problems” Walmart faces are problems pushed onto staffers and shoppers in markets where retail sales have declined. The “solutions” that Costco landed on only seem to work in wealthier and denser neighborhoods, where retail sales jobs are still the bottom rung of the economy.