Retail

Are Walmart's 5,200 Stores Enough?

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Walmart has over 10,000 locations worldwide. Over 5,200 are in the US. Based on how much reach Walmart has geographically and the store counts of competition, it is worth the question of whether that is enough.

Walmart’s store count in the US falls into several categories. Walmart Supercenters at 3,561, Walmart Discount Stores at 361, Neighborhood Markets at 677, Convenience Stores at 8, Small Format Stores at 8, Sam’s Club locations at 77, and pick-up locations at 1. That totals 5,283. Sam’s Club targets small businesses and not consumers. Its direct competitor is Staples.

Analysis of Walmart’s store footprint by several organizations shows that, in sum, its locations are within 10 miles of 90% of the US population. That is impossible to show but probably directionally correct. Target, a direct competition for a large portion of Walmart’s inventory, has only 1,948 stores. Kroger is also a major competitor because groceries are a large portion of Walmart’s US revenue. It has 2,916 locations.

Walmart’s location map shows that its store count dwarfs the counts of its competitors. However, it has another benefit that is not physical store based. Its online presence and revenue are well short of Amazon.com’s but well ahead of other retailers. Estimates put the annual e-commerce number for Walmart at $82 billion. Amazon’s annual e-commerce North American revenue runs about $350 billion.

How much direct competition does Walmart have in the bricks and mortgage category? Almost none. E-commerce only enhances that advantage.

Also Read: 30 Everyday Items That Are Cheaper at Dollar Tree Than at Walmart

 

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