When you think of convenience in the context of retail, it’s hard not to think of Walmart. After all, where else can you get everything from groceries to cleaning supplies to clothing under the same roof?
Sure, Target offers a wide range of inventory, too. But at a Walmart Supercenter, you might find twice the number of products — and at better prices.
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In fact, one thing that sets Walmart apart from its competition is its competitive price points.
Related: Costco adds new food item members already love
Target may be the more “fun” store to shop at. But it’s not necessarily more fun for your wallet.
Walmart shoppers know they can rely on consistently low prices across the board, which is no doubt what keeps them coming back.
Walmart has a key advantage over Costco
If there’s perhaps one retailer that could give Walmart a run for its money on prices, it’s Costco.
Costco intentionally limits its inventory so that it’s able to negotiate favorable deals with its suppliers. As a result, it’s able to offer members attractive prices on a wide range of products.
Related: Costco brings back huge perk members have missed
If it weren’t for those low prices, Costco would probably lose members year after year. But members are willing to pay $65 or $130 annually for the overall savings involved.
Walmart, on the other hand, is able to offer consistently low prices across a much wider selection of products, giving it an edge over Costco. And at Walmart, there’s no fee to walk in the door.
Walmart expands into service Costco is known for
Though you may not find every item on your shopping list in the course of a Costco run, another benefit of being a member is getting access to the store’s food court.
Costco’s food court is loaded with great deals, from the famous inflation-proof $1.50 hot dog and soda combo to the $9.95 full-sized pizza.
Related: Costco CEO admits warehouse club may change its hours
Costco also sells a nice selection of take-home meals, from its much-loved macaroni and cheese to its cozy chicken pot pie.
Now, Walmart is taking a page out of Costco’s playbook by upping its selection of prepared foods.
Consumers are spending more money on groceries these days and staying away from restaurants because they’re financially strained. Prepared supermarket meals offer the benefit of affordable food without the markups restaurants charge, and without having to spend the time cooking.
Walmart is expanding its selection of grab-and-go meals to include pre-packaged sandwiches and salads. It’s also introducing hot bars in its stores, which commonly offer a range of proteins and sides.
Additionally, Walmart is branching out into different in-store restaurant offerings, including hot dogs and poke. One of its stores was even renovated recently to include a sushi bar.
Not only can Walmart’s expansion into prepared foods benefit budget-conscious consumers who are pressed for time, but it’s also a savvy move, given the company’s desire to attract higher-income customers.
More retail:
- Walmart CEO sounds alarm on a big problem for customers
- Target makes a change that might scare Walmart, Costco
- Top investor takes firm stance on troubled retail brand
- Walmart and Costco making major change affecting all customers
Either way, this change is sure to delight Walmart fans who already love the idea of being able to tackle all of their shopping needs in a single trip. Now, they can do that — plus put dinner on the table — without stress.Â
Maurie Backman owns shares of Costco.
Related: Walmart makes bold move to help inflation-battered consumers
