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Costco shoppers are spending more on groceries than food away from home, CFO Gary Millerchip said鈥攁 trend that explains why Walmart and other grocers are doubling down on prepared foods and foodservice partnerships.

But the telehealth space is oversaturated, and some retailers鈥攕uch as GNC Health or Costco Wholesale鈥攃ould soon exit the market if they can鈥檛 deliver a differentiated patient experience that鈥檚 worth the cash-pay price. The clash between Big Pharma and some D2C weight loss drug sellers will worsen.

The lack of concern could be because most of these players鈥攊ncluding Walmart, Costco Wholesale, The Kroger Co., and Albertsons Companies鈥攁lso operate pharmacies. So any spending decline for groceries could be offset by more customers picking up GLP-1 prescriptions. Meanwhile, a slew of food sellers and CPG brands are developing product lines and reformulating items with GLP-1 users in mind.

Amazon and Walmart dominate the landscape, but the other half of US ecommerce sales is still up for grabs.

Larger players like Walmart and Costco are better positioned to secure favorable terms or absorb extra costs, potentially gaining market share as they did during the pandemic. Retailers with pricing power are likely to come out ahead. That鈥檚 particularly true among those focused on essential goods, strong private label brands, and discount chains.

Retail media鈥檚 rapid growth has spurred nonretail verticals to harness their first-party data to fuel their own commerce media networks. Retail media spending still dominates the commerce media landscape, but distinct challenger cohorts are finding their footing.

The news: Warehouse clubs are off to a strong start in 2025, with January foot traffic and sales climbing at Costco, Sam鈥檚 Club, and BJ鈥檚 Wholesale Club. Visits rose 7.7% YoY at both Costco and Sam鈥檚 Club and gained 7.4% at BJ鈥檚 during January, per Placer.ai foot traffic data. Costco reported that its comparable sales rose 7.5% in the four weeks ended February 2.

There are now more than 80 retail media networks (RMNs) in the US. The volume of RMNs, combined with the dominance of Amazon and other established competitors, makes it challenging for new and niche RMNs to capture share.

The heartiest performers鈥擝est Buy, Costco, Chewy, Lowe鈥檚, and Etsy鈥攚ill just hold on to their low-single-digit ecommerce market shares. And others鈥攊ncluding Apple, Target, The Home Depot, and Macy鈥檚鈥攚ill track very slight declines. Temu, TikTok Shop, and Shein are shaking up the agenda.

Still, it鈥檚 worth noting that Costco, which has notably stood firm on DEI, experienced a YoY increase in traffic during the same three-week period.

Private label brands are no longer just the cheaper alternatives sitting on store shelves. They've evolved into strategic assets that build customer loyalty, boost retailer margins, and increasingly compete with national brands on quality and design, not just price.

A different approach: Sam鈥檚 Club鈥檚 approach to in-store shopping differs a bit from Costco, which could be how Sam鈥檚 Club stole the top spot from Costco on this year鈥檚 American Customer Satisfaction Index (ACSI). "If you dig into Costco's strategy, [the goal] is to create a chaotic in-store environment," said Marzano.

Beyond Target and Walmart, Meta is also rolling back its DEI commitments鈥攂ut companies like Ben & Jerry鈥檚, Costco, Delta, and e.l.f. Beauty remain dedicated, arguing that inclusive marketing represents both social responsibility and a business necessity.

Costco is facing direct pressure from 19 states鈥� attorneys general because of its commitment to DEI policies, per CBS. But the company hasn鈥檛 backed down鈥攁nd its customers seem to appreciate that. Its sales, ecommerce, and revenues are all up from last year, per Modern Retail. On the contrary, many of Target鈥檚 customers boycotted the company after it stepped away from its DEI initiatives.

Despite broader corporate pullbacks, the NFL, Nike, Pinterest, and Costco have maintained their commitments. Nike鈥檚 Super Bowl ad focused on elevating marginalized athletes, while Pinterest鈥檚 鈥淭ailored鈥� campaign celebrated Black fashion鈥檚 past, present, and future. These brands are betting that sustained engagement with diverse audiences will pay off in long-term loyalty. Our take:.

Costco. Costco has strongly endorsed its DEI initiatives, despite industry pullback, stating they enhance the company's ability to attract and retain talent. However, this positive move is complicated by potential strike actions at the retailer.

Costco is the brand most preferred by Democrats, according to the Axios Harris Poll 100. What is the brand most preferred by Republicans? A) Chick-fil-A B) Arizona C) John Deere D) Hobby Lobby. Chick-fil-A is the brand most preferred by Republicans, according to the Axios Harris Poll 100. Was this email forwarded to you? Sign up here. May 27, 2025.

Speaking of retailers that Zak finds chaotic, number four, Costco. Arielle, why Costco? Arielle Feger (06:43):. So I think it's really interesting. Costco has been really fully behind DEI initiatives during a period where a lot of retailers are pulling back their DEI programs.