Walmart vs. Costco: Which Discount Retailer Is the Better Investment Amid Rising Grocery Prices?
As President Trump's tariffs threaten to push grocery prices higher, investors are weighing the merits of Walmart and Costco as defensive plays. The Tax Foundation estimates nearly 75% of U.S. food imports will be affected, creating tailwinds for discount retailers.
Walmart's $778 billion market cap and global footprint of 10,000+ stores contrast with Costco's membership-driven model—900 warehouses serving 79.6 million households. Both benefit from supply chain leverage, but their investment theses diverge: Walmart dominates through scale, while Costco thrives on membership loyalty and premium bulk offerings.