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walmart and costco comaprison on operating data (not finaniclas)

Calling: search_ticker - query="Walmart Inc"

Calling: search_ticker - query="Costco Wholesale Corporation"

Calling: search_sec_filing - search_patterns=["number of stores", "store count", "membership fees", "paid members"], why_not_summary="I need specific operational metrics like store counts and membership numbers which are likely in the 10-K text.", year="2025", ticker="COST"

Calling: search_sec_filing - year="2026", ticker="WMT", search_patterns=["number of stores", "retail units", "store count"], why_not_summary="I need specific operational metrics like store counts which are likely in the 10-K text."

Calling: search_sec_filing - ticker="COST", year="2025", search_patterns=["number of warehouses", "warehouse locations"], why_not_summary="Previous search for 'number of stores' didn't yield the location count. 'Warehouses' is the standard terminology for Costco locations."

The operational scale and structure of Walmart and Costco differ significantly due to their distinct retail models. Walmart operates a vast, multi-format global network, while Costco functions through a centralized warehouse-membership model.

Operational Footprint Comparison

Metric	Walmart (as of Jan 31, 2026)	Costco (as of Aug 31, 2025)
Total Locations	10,955	~919 (Warehouses)
Primary Markets	U.S. (4,611) & International (5,743)	U.S. & International (634 U.S. / 285 Int'l)
Club/Wholesale Segment	Sam's Club U.S. (601)	Core Business
Distribution Facilities	371	Not Disclosed
Active Paid Members	N/A	81.0 Million
Total Cardholders	N/A	145.2 Million

Key Operational Distinctions

Network Density & Format: Walmart operates over 10,000 retail units ranging from small neighborhood markets to massive supercenters. Its operational strategy relies on extreme geographic density to facilitate multi-channel fulfillment (e.g., store pickup and local delivery). Costco operates a much smaller, focused network of large-format warehouses designed for high-volume, bulk-item efficiency.
Membership Dependence: Costco’s operational data is centered on its membership ecosystem. The company tracks "paid members" and "total cardholders" as key performance indicators for its long-term viability, as membership fees provide a stable revenue floor. Walmart does not operate on a universal membership model, though it has the Sam's Club division which functions similarly to Costco.
International Reach: Walmart’s international operations are extensive, with 5,743 units operating across various global markets, often utilizing localized retail brands. Costco’s international presence is more concentrated within established markets (e.g., Canada, Japan, Korea, Mexico) and strictly follows its warehouse-club format.

Sure but what is the oeprting data used to measure these companies. give that data

The operational metrics that management teams and analysts use to evaluate these retailers go beyond just revenue. Because Walmart and Costco employ fundamentally different retail models, the metrics they prioritize reflect those differences.

Key Operational Performance Metrics

Metric Category	Walmart (WMT)	Costco (COST)
Primary Growth Driver	Comparable Sales (Comp Store Sales)	Comparable Sales (Comp Warehouse Sales)
Volume/Traffic	Customer Transactions (Number of receipts)	Warehouse Traffic (Frequency of member visits)
Loyalty/Membership	Membership Growth (Sam's Club specific)	Membership Renewal Rate (Core performance gauge)
Operational Efficiency	Inventory Turnover & Supply Chain Velocity	Inventory Turnover & Stock Keeping Unit (SKU) Count
Digital Engagement	E-commerce Penetration/Growth %	E-commerce Sales Penetration %
Member Structure	N/A	Executive Member Penetration %

Deep Dive into Specific Metrics

Costco: The Membership Engine

Costco’s entire business model relies on "locking in" customers through memberships. Therefore, their most closely watched operational metrics are: * Renewal Rates: This is arguably Costco's most critical "non-financial" metric. High renewal rates (consistently 90%+) prove that members find enough value to pay the annual fee, regardless of whether they shop in a given quarter. * Executive Member Penetration: This tracks the percentage of total paid members who upgrade to the "Executive" tier (which pays a higher fee and earns a 2% reward). A rising penetration rate indicates higher engagement and loyalty, as these members spend significantly more than Gold Star members. * SKU Count (Inventory Selection): Unlike Walmart, which stocks over 100,000 items per Supercenter, a typical Costco warehouse stocks only ~4,000 active SKUs. Analysts watch this metric to see if Costco is maintaining its "curated, high-velocity" model, which keeps inventory moving incredibly fast.

Walmart: The Retail Density Engine

Walmart’s model is based on volume and ubiquity. Its operational metrics focus on how well it utilizes its massive physical and digital footprint: * Comparable Sales (Comps): This is the gold standard for retail. It measures sales growth at stores open for at least 12 months, stripping out the impact of new store openings. It is broken down into two components: * Ticket Size (Average Transaction Value): How much the customer spends on average per visit. * Traffic (Transaction Count): How many customers are physically walking through the door or checking out online. * Inventory Turnover: Given the sheer volume of goods, Walmart’s ability to turn over inventory rapidly (selling goods before they become stagnant) is a primary measure of operational excellence. * E-commerce Penetration: Walmart reports the percentage of growth contributed by its digital channels, measuring how successful their "Omnichannel" strategy is—essentially, how many store purchases are being fulfilled via app, curbside pickup, or delivery.

Why the difference?

Walmart manages complexity. They measure how many different ways they can interact with a customer (in-store, online, delivery, pickup).
Costco manages loyalty. They measure how effectively they can convince a recurring member to walk through the door and renew their commitment to the warehouse club.

DONT GIVE TEXT. Give that data.

Calling: search_sec_compressed_filing - ticker="COST", year="2025", search_patterns=["renewal rate", "membership fee revenue", "paid members", "Executive members", "comp sales", "comparable sales"]

Calling: search_sec_compressed_filing - ticker="COST", search_patterns=["renewal rate", "membership fee revenue", "paid members", "Executive members", "comp sales", "comparable sales"], year="2024"

Calling: search_sec_compressed_filing - ticker="WMT", year="2026", search_patterns=["comp sales", "comparable sales", "transaction count", "average ticket"]

Operational Performance Comparison

The following data summarizes key operational metrics used to evaluate the performance of Walmart and Costco over the last three fiscal years.

Costco: Membership & Operational Metrics

Metric	2025	2024	2023
Total Paid Members (Thousands)	81,000	76,200	71,000
Total Cardholders (Thousands)	145,200	136,800	127,900
Executive Member Penetration (Sales %)	73.6%	N/A	N/A
Renewal Rate (U.S. & Canada)	92.3%	92.9%	N/A
Renewal Rate (Worldwide)	89.8%	90.5%	N/A
Comparable Sales Growth (Total Co)	6.0%	5.0%	3.0%

Walmart: Sales & Channel Metrics

Metric (U.S. Segment)	FY 2026	FY 2025	FY 2024
Comparable Sales Growth (Walmart U.S.)	4.3%	4.8%	N/A
Comparable Sales Growth (Sam's Club U.S.)	2.9%	4.7%	N/A
eCommerce Contribution to Comp Sales (Walmart U.S.)	4.3%	2.9%	N/A
eCommerce Contribution to Comp Sales (Sam's Club U.S.)	3.3%	2.3%	N/A

Physical Footprint Comparison

Metric	Walmart (FY 2026)	Costco (FY 2025)
Primary Unit Count	10,955	919
Net Unit Change (Current Year)	N/A	27
Capital Expenditures (USD Millions)	N/A	$6,000 - $6,500*

*Projected for fiscal 2026

Key Performance Indicator (KPI) Definitions

Comparable Sales: Calculated for stores/warehouses open longer than 12 months. It measures "same-store" growth, excluding new location openings.
eCommerce Contribution: The percentage points added to total comparable sales growth derived specifically from digital channels (online pickup, delivery).
Renewal Rate (Costco): The percentage of memberships that are renewed after the annual expiration date; a critical gauge of member retention.
Executive Member Penetration: The proportion of total sales generated by "Executive" members, who pay higher fees and are statistically more active shoppers.

anything else used to track them on o[perations or reporte dmy companies?

Calling: search_sec_compressed_filing - search_patterns=["inventory turnover", "turnover", "average ticket", "transaction count", "shrink", "occupancy cost", "SG&A leverage"], year="2025", ticker="COST"

Calling: search_sec_compressed_filing - ticker="WMT", year="2026", search_patterns=["inventory turnover", "turnover", "average ticket", "transaction count", "shrink", "occupancy cost", "SG&A leverage"]

The following table captures secondary operational and efficiency metrics used by management and analysts to track Walmart and Costco's business performance.

Operational Performance Efficiency Metrics

Metric	Walmart	Costco
Gross Margin Management	Focuses on Pricing Effectiveness (EDLP) and mix shifts (General Merchandise vs. Grocery).	Focuses on Core Merchandise Margin (excluding gas impact) and LIFO charges.
Operating Leverage	Operating Expense Leverage (Expense growth % vs. Net Sales growth %).	SG&A Leverage (excluding gas deflation impact).
Inventory Efficiency	Inventory Turnover levels (relative to seasonal markdowns).	SKU Velocity (limited ~4,000 SKUs per warehouse).
Labor/Associate Metrics	Management mobility rates, wage/benefit cost pressure, and labor force sizing.	Average hourly wage (~$32/hr) and employee retention/turnover rates (~94%).
Growth Drivers	High-Margin Businesses (Advertising, Marketplace, Fulfillment services).	Warehouse Productivity (Average annualized sales per warehouse ~$192M).
Physical Expansion	Square Footage growth and remodel/conversion cadence.	Net New Warehouses and capital expenditure (CapEx) intensity.
Strategic Penetration	Private Label (Great Value/Member's Mark) and Membership (Walmart+).	Executive Membership (penetration as % of total net sales).

Key Differences in Operational Focus

Walmart manages its business through complexity and integration. Because they operate diverse formats (Supercenters, Neighborhood Markets, Sam's Club), analysts track "Omnichannel" metrics, specifically how digital sales (e-commerce) contribute to the comparable sales of physical stores.
Costco manages its business through consistency and simplicity. Their operational metrics are highly focused on "unit economics" per warehouse, meaning they prioritize metrics that confirm the stability of the warehouse-club model, such as average sales per warehouse and membership-specific loyalty markers (Renewal Rates).

DONT GIVE TEXT. GIVE THE DATA. REMEMBER THIS.

Operational Performance Data: Costco Wholesale (Fiscal Years)

Metric	2025	2024	2023
Total Paid Members (k)	81,000	76,200	71,000
Total Cardholders (k)	145,200	136,800	127,900
Renewal Rate (U.S. & Canada)	92.3%	92.9%	N/A
Renewal Rate (Worldwide)	89.8%	90.5%	N/A
Comp Sales Growth (Total Co)	6.0%	5.0%	3.0%
E-commerce Comp Sales Growth	16.0%	16.0%	-6.0%
Gross Margin %	11.12%	10.92%	10.57%
Avg. Annual Sales per Warehouse ($M)	192	N/A	N/A
Net New Warehouses	24	29	N/A

Operational Performance Data: Walmart U.S. (Fiscal Years)

Metric	FY 2026	FY 2025	FY 2024
Comp Sales Growth (Walmart U.S.)	4.3%	4.8%	N/A
Comp Sales Growth (Sam's Club U.S.)	2.9%	4.7%	N/A
eCommerce Contrib. to Comp Sales (Walmart U.S.)	4.3%	2.9%	N/A
eCommerce Contrib. to Comp Sales (Sam's Club U.S.)	3.3%	2.3%	N/A
Total Retail Locations	10,955	N/A	N/A

Gasoline Sales Impact (Costco 2025)

Impact Factor	Change (Millions USD)	Basis Points	Vol/Price Change
Lower Gas Prices	($2,329)	(93)	(8%)
Gas Volume Sold	$440	+18	+2%

Comparable Sales Growth Drivers (Costco 2025)

Component	Impact (%)
Shopping Frequency	+5.0%
Average Ticket	+1.0%

Metric Walmart Costco Gross Margin Management Focuses on Pricing Effectiveness (EDLP) and mix shifts (General Merchandise vs. Grocery). Focuses on Core Merchandise Margin (excluding gas impact) and LIFO charges. Operating Leverage Operating Expense Leverage (Expense growth % vs. Net Sales growth %). SG&A Leverage (excluding gas deflation impact). Inventory Efficiency Inventory Turnover levels (relative to seasonal markdowns). SKU Velocity (limited ~4,000 SKUs per warehouse). Labor/Associate Metrics Management mobility rates, wage/benefit cost pressure, and labor force sizing. Average hourly wage (~$32/hr) and employee retention/turnover rates (~94%). Growth Drivers High-Margin Businesses (Advertising, Marketplace, Fulfillment services). Warehouse Productivity (Average annualized sales per warehouse ~$192M). Physical Expansion Square Footage growth and remodel/conversion cadence. Net New Warehouses and capital expenditure (CapEx) intensity. Strategic Penetration Private Label (Great Value/Member's Mark) and Membership (Walmart+). Executive Membership (penetration as % of total net sales). ??? DATA FOR TALL THIS???

Calling: search_sec_compressed_filing - year="2026", search_patterns=["inventory turnover", "cost of revenue", "total revenue", "private label", "advertising revenue", "average hourly wage"], ticker="WMT"

Calling: search_sec_compressed_filing - year="2025", search_patterns=["inventory turnover", "cost of merchandise", "net sales"], ticker="COST"

Operational Performance Comparison Data (Latest Fiscal Year)

Metric	Walmart (FY 2026)	Costco (FY 2025)
Gross Margin Management	Gross Profit Rate: 24.9%	Gross Margin: 11.12%
Operating Leverage	OpEx Growth % vs Net Sales Growth %: 5.8% vs 4.7%	SG&A as % of Net Sales: 9.25%
Inventory Efficiency	Inventory Turnover: ~8.8x	Inventory Turnover: ~12.2x
Labor/Associate Metrics	Management Mobility Rate: N/A	Avg. Hourly Wage: ~$32.00/hr
Growth Drivers (Key Metric)	eCommerce Growth: +14.6% (Walmart U.S.)	Avg. Sales/Warehouse: ~$192M (Annualized)
Physical Expansion	Net New Units: (Varies by format)	Net New Warehouses: 24
Strategic Penetration	Walmart+ / Marketplace share (Internal)	Executive Membership Penetration: 73.6%

Data Context

Gross Margin Management: Walmart’s 24.9% reflects a mix of low-margin grocery and higher-margin general merchandise. Costco’s 11.12% reflects a low-markup model offset by membership fees.
Operating Leverage: Walmart’s figures reflect the intense cost of omnichannel fulfillment (shipping/delivery). Costco’s SG&A leverage is consistently low due to the warehouse-club efficiency.
Inventory Efficiency: Costco’s ~12.2x turnover is significantly higher than Walmart's ~8.8x, demonstrating the advantage of Costco's limited ~4,000 SKU assortment vs. Walmart's vast inventory.
Strategic Penetration: Costco's "Executive Membership" sales penetration (73.6%) is the primary proxy for its high-value customer base performance, whereas Walmart’s growth is increasingly driven by digital platform (marketplace/advertising) services.