WALMART has fired back at Costco with a new store section.
The major retailer is taking aim at the rival’s popular food court.
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Walmart is taking aim at competitor Costco’s fan-favorite food court section.
The retail giant has launched a new line of baked goods priced to compete directly with Costco’s beloved offerings.
Among the new releases are three cheesecake flavors.
These include guava, hot honey, and pineapple mango with Tajín.
The desserts are affordably priced at $3 for two slices.
This positions them squarely against Costco’s seasonal favorites like its $12.99 apple pie and $5.99 pumpkin pie.
Walmart’s lineup also includes a $3.24 churro tres leches parfait and a $7.97 piña colada-inspired cake.
These additions aim to offer value for budget-conscious consumers.
While Costco continues to remain a consumer favorite with its Kirkland Signature brand, Walmart is ramping up the competition.
According to new data from consumer analytics firm Numerator, Walmart is still the largest grocery chain by sales in the US, accounting for one in every five dollars spent.
However, Costco has steadily gained market share, growing from 7.6% in 2023 to 8.5% today, according to Business Insider.
The warehouse retailer’s model of limited, high-quality bulk offerings has resonated with consumers, especially amid inflation and looming tariff concerns.
“Costco is leveraging the fact that their entire store and organization are a single brand,” said retail expert Gary Sankary to The Street.
Unlike competitors that rotate private labels, Costco has built trust through Kirkland, which analysts say maintains high quality despite being a private label.
That trust has turned products like Kirkland Signature Coastal Cheddar Cheese and the $13.99 12-pack of Helles-Style Lager into viral hits.
Even retro items like Slice Soda – once dubbed “Pepsi’s answer to Sprite” – have found a second life on Costco shelves.
Where Walmart lacks Costco’s membership model and bulk-only focus, it boasts more than 4,600 locations nationwide and a lower barrier to entry.
Its bakery expansion appears to be a strategic move to capture shoppers seeking affordable indulgence without needing to buy in bulk.
However, Costco’s customer loyalty remains – in part thanks to its generous return policy.
“We guarantee your satisfaction on every product we sell, and will refund your purchase price,” Costco’s policy states.
That even includes food items, with few exceptions.
With tariffs pushing prices up and economic uncertainty weighing on consumers, both chains are doubling down on value.