Where to go shopping?

Compare the pricing of major retailers in the US.

Retailers: Amazon, Walmart, Costco, Target and Macy's

Time period: from 2016 to 2023

Yao Zhao @ RBS

Summary

• For retailers, gross margin represents how much they markup the price from their cost of goods sold. High gross margin means high pricing, low gross margin means low pricing.

• Macy's has the highest markup or pricing, with a gross margin of 40% consistently over time except during the Pandemic.

• Costco has the lowest markup or pricing, with a gross margin of 12-13% throughout the years.

• Amazon dropped its pricing in 2018 and has the second lowest markup since. However, it raised its pricing slightly in 2023.

• Walmart has a steady markup, about 25% gross margin throughout the years.

• Target has the second highest markup or pricing, but dropped its price recently.

Conclusion: where to shop by pricing?

Costco and Amazon are the best places to go shopping

Macy's is worst place

Walmart and Target are in between.