"They are like royalty in Bentonville," said Charu Thomas, who chairs the board of Bentonville-based organizations, reflecting the Walton family's significant influence in the area.
He says he paid roughly $5 to his distributor to get the pack of Honey Bunches of Oats onto the shelf. But his much larger rivals, the big US supermarket chains, can sell that same box for around $5 - essentially, the price he has to pay wholesale. That dynamic makes it "impossible for us to compete."
Costco sells its products with very little markup, choosing instead to make most of its money from membership sales. This business model makes sense: The better deals it has, the more likely people are to want a membership. Memberships at Costco are booming. In the fiscal first quarter of 2026, overall memberships were up 5% year over year to 146 million. And its higher-priced executive memberships were up a stronger 9%.
The outlook for 2026 I'm watching 2026 with equal parts optimism and urgency. Optimism because consumer demand is still there. Retail sales have remained resilient in recent data. Urgency because the operating environment is only getting tighter. Coming out of FY2025, large retailers demonstrated resilience amid inflation pressure, shifting consumer behavior, and global supply-chain complexity. Walmart raised its outlook and leaned further into a model that blends physical stores, e-commerce scale, and execution discipline.