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How Walmart and Costco Thrive in Inflationary Times: 2026 Analysis – News and Statistics
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In challenging economic periods, particularly those marked by inflation, the retail sector often reveals its strongest players. According to a report published on 2026-05-02, two major retailers are showing notable resilience under these conditions.
Walmart operates as the world's largest retail chain, with over 5,000 U.S. locations situated within 10 miles of 90% of the American population. The company has recently leveraged its physical stores as distribution hubs for e-commerce, a segment that has become a significant growth driver. In the 2026 fiscal fourth quarter ending January 31, Walmart's e-commerce sales rose by 24% compared to the same period a year earlier. As a discount retailer, it historically maintains strength across economic cycles, and it has extended its reach into more affluent customer segments, with most recent market share gains coming from households earning at least $100,000 annually. Walmart is recognized as a Dividend King, having increased its dividend annually for 53 consecutive years. Its current dividend yield stands at 0.74%.
Walmart Stock Gains Edge Over Costco on $6.4 Billion Ad Sales
Walmart stock gets the edge over Costco right now as global advertising revenue rose 37% to $6.4 billion and U.S. e-commerce climbed 27%. The comparison turns on Walmart's lower valuation and broader earnings engines. Costco still has the membership model, but the numbers now point to Walmart's faster mix shift.
$6.4 billion in annual global advertising revenue came from Walmart Connect, the company's retail media network, and it grew 37%. That business sits alongside 27% operating income growth, giving Walmart more ways to widen earnings beyond basic store traffic. The company also continues to push into financial services and healthcare.
11% gross margins show why the model still looks thin on paper, yet the revenue mix is moving toward higher-margin activities. For investors comparing consumer staples stocks, that matters because the earnings path is no longer limited to selling low-margin goods. If those newer businesses keep expanding, Walmart's profit base can outgrow its legacy retail footprint.
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Costco vs. Walmart Stock: What's the Better Consumer Staples Buy?
Walmart is evolving into a high-margin advertising and data platform, giving it a more compelling near-term upside than Costco.
Costco Wholesale (COST +0.74%) and Walmart (WMT 0.26%) are both high-quality consumer staples companies with durable competitive moats. Neither stock is cheap, and the better stock right now depends on what you're aiming to optimize — but on the whole, Walmart is the buy right now.
If you want a higher-growth, membership-driven compounder that rewards long-term holders, Costco stock is the pick. If you want lower valuation, more near-term earnings levers, and exposure to one of the fastest-growing retail advertising businesses in the world, Walmart stock has the edge. For most investors building a core position in consumer staples today, Walmart offers the better risk-reward proposition at current prices.
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