Mass Merchandisers represent one of the most significant retail channels in the United States, with the total U.S. retail sector reaching approximately $7.4 trillion in 2025. The leading mass merchandisers—Walmart, Target, and Costco—continue to position themselves as one-stop shopping destinations, offering a wide variety of products across many categories while providing competitive pricing that often beats traditional grocery stores.
Walmart remains the dominant force in mass merchandising, generating $681 billion in annual revenue in fiscal year 2025 (ending January 31, 2025), a 5% increase from the prior year. Walmart U.S. alone generated approximately $462 billion in net sales, while Sam’s Club contributed $90 billion. Walmart operates over 4,600 stores in the United States across multiple formats including Supercenters, Neighborhood Markets, and discount stores. The company’s e-commerce sales have grown significantly, reaching over $65 billion in U.S. online sales in 2024—representing approximately 18% of total U.S. sales—with online sales growing approximately 22% year-over-year. Store-fulfilled delivery grew nearly 50% in 2024 and was the main driver of new Walmart+ memberships. Walmart’s EDLP (Everyday Low Price) strategy continues to drive share gains, including among higher-income households.
Target remains a powerful mass merchandiser with approximately $106.6 billion in net sales in fiscal year 2024. The company operates approximately 1,956 stores across the United States and continues to emphasize its differentiated approach—offering more style-focused merchandise with a higher-income customer base. Target’s digital comparable sales grew 8.7% in Q4 2024, with same-day delivery options powered by Target Circle 360 growing more than 25%. Beauty was a standout category, delivering mid-single digit comparable sales growth, while traffic increased 1.4% reflecting gains in both stores and digital channels.
The competitive landscape has evolved dramatically since 2012. Kmart, once a major competitor with over 2,000 stores at its peak, has effectively exited the mass merchandiser market. The last full-size Kmart store in the continental United States closed in October 2024 in Bridgehampton, New York, leaving only a small downsized location in Miami and a handful of stores in U.S. territories. Kmart’s decline—accelerated by its 2005 merger with Sears and subsequent 2018 bankruptcy—illustrates the intense competition in this channel. Meanwhile, Amazon has emerged as a formidable competitor, with U.S. retail sales exceeding $220 billion and growing 13.5% year-over-year, representing approximately 3% of total U.S. retail revenue.
Mass retailers are outpacing the broader U.S. retail market by approximately 2x, with the combined sales of Amazon, Walmart, and Target (the “Mass Index”) growing approximately 6-7% annually compared to 2.9% for the overall retail market. This outperformance is driven by consumers’ value-conscious shopping behavior and these retailers’ dominant positions in e-commerce.
The channel continues to evolve with significant investments in omnichannel capabilities. Mass merchandisers are leveraging their store infrastructure as fulfillment centers for online orders—including “buy online, pick up in store” and curbside pickup services—while also operating dedicated e-commerce fulfillment centers. AI-driven inventory management and personalization tools are increasingly common, helping retailers predict demand and optimize the shopping experience.
NPI knows the importance of placing brands in positions to succeed in the large world of mass merchandising. We have the expertise and relationships to place your brand in the right environment at the right price point to lead to success in this crucial sales channel.
Contact the NPI team today to learn how we can assist you with the Mass Merchandiser retail market.