Property Management /

Costco vs Walmart: Understanding the Tenant

by: Mike Boehm, Orput Companies Property Management Director

My interest is always piqued when I see two successful businesses accomplishing their goals and doing so with differing business plans.(See article: Why There’s no Costco Inside Dallas City Limits Yet) Costco relies on volume sales to maintain their bottom line but not to the extent of Wal-Mart. Both entities control their overhead to achieve margins  but they each manage their overhead differently. It is important for a property manager/Landlord to understand the goals of a potential tenant and how the tenant achieves those goals. Wal-mart is chasing market share with a vengeance while Costco’s goal is to achieve a measured market share. Understanding the difference may give a property manager/Landlord an edge on the competition when selling or leasing real estate.

photo credit: Ryan McGuire