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Costco reigns supreme in big-box retail, but Walmart is turning up the heat.
Walmart –
the largest grocery chain by sales
– has just released a new line of baked goods aimed squarely at Costco’s cult-favorite bakery section..
These include three cheesecake flavors — guava, hot honey, and pineapple mango with Tajín.
The cheesecakes are competitive on price at $3 for two slices.
Other additions include a $3.24 churro tres leches parfait and a $7.97 piña colada-inspired cake.
Costco has long lured shoppers with affordable bakery staples like its $12.99 Kirkland Signature Apple Pie and the seasonal $5.99 pumpkin pie.
Walmart and Costco are vying for supremacy across multiple areas, not just in the bakery section.
Walmart was
crowned the champion of Grocery Wars once more
sucking up one in every five dollars spent on groceries in America, as per new data from consumer analytics company Numerator.
However, it is
Costco, which competitors are struggling against.
.
Since 2019, Costco has been acquiring a larger portion of grocery spending, boosting its market share from 7.6 percent in 2023 to 8.5 percent currently.
Business Insider
reported.
Given Costco’s emphasis on providing large quantities of a select range of items, it seems improbable for them to capture the largest portion of the grocery market. However, they are well-placed to increase their share significantly.
Costco’s emphasis on providing good value will attract shoppers who aim to reduce their expenses during these times.
unstable economy and higher expenses due to tariffs
.
Costco also sells a wide range of products which tend to have higher margins than groceries, helping to boost the company’s bottom line.
Costco’s success has also been
attributed the success of its Kirkland brand
.
‘Costco is leveraging the fact that their entire store and organization are a single merk,’ industry expert Gary Sankary recently told The Street.
‘Watching big boxes cycle through the process of introducing and retiring their owned brand labels every few years to convince customers that new is better, at the same time, is confusing and, in many cases, dilutes their merk.’
‘The Kirkland merk quality is not by any means diluted just because it is private label,’ retail consultant Robert Amster agreed.
Notable recent achievements for the merk encompass
the $13.99 Kirkland 12-pack of Helles-Style Lager
which has garnered widespread acclaim and prestigious awards
Kirkland Signature Shoreline Cheddar Cheese
.
Recently Slice Soda, a lemon-lime soda originally described as
‘Pepsi’s answer to Sprite’
gained popularity once it returned to Costco shelves after an absence of fifteen years.
But even if shoppers purchase clothes, grocery items, or toilet paper that they don’t like, Costco has a secret sauce that also
continues to draw customers back for additional purchases
.
The merk has an expansive return policy that allows shoppers to return items,
even if they’re half consumed
.
‘We guarantee your satisfaction on every product we sell, and will refund your purchase price,’ the merk said, with a few minor exceptions.
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