The Brands Walmart OwnsNarrow moat

Walmart (WMT) — moat facet

Walmart's labels are a weapon pointed at suppliers; Costco's Kirkland is a reason to belong. The difference is the whole strategy.

Great Value, Equate, Mainstays, Marketside, Freshness Guaranteed, Ozark Trail, onn., Time and Tru, Athletic Works, Parent's Choice, Hyper Tough, bettergoods, George, Joyspun, No Boundaries, Spring Valley, Way to Celebrate, Wonder Nation1. At Sam's Club, Member's Mark. Walmart does not disclose what they add up to, which is itself informative.

Gross profit rate, fiscal years to January (% of net sales)24.4%FY2223.5%FY2323.7%FY2424.1%FY2524.2%FY26Net sales less cost of sales; Forms 10-K FY2024 and FY2026
The rate fell a full point in fiscal 2023, when Walmart marked down excess inventory, and three years later has recovered most of the drop. Own brands are the main lever on it, and they have not yet lifted it above the fiscal 2022 level.

A private brand does three things at once, and only the first is obvious. It sells at a lower price to the customer. It earns a higher margin for the retailer, because there is no brand-building cost embedded in the wholesale price. And — the part that matters most — it changes every negotiation with the branded supplier on the same shelf, because the alternative is no longer theoretical.

Walmart's version is unusual in being mostly unbranded in the customer's mind. Great Value is a value proposition rather than an identity; nobody chooses Walmart because of it. That is a deliberate contrast with Costco, whose Kirkland Signature is roughly a third of sales and is a genuine reason members renew2. Walmart's labels are a weapon pointed at suppliers; Costco's is a reason to belong.

The recent move upmarket is the interesting development. bettergoods, launched into the premium food space, is an attempt to capture the trade-down customer at the top of the basket rather than the bottom — which fits with the company's own report of share gains led by upper-income households3.

Nothing here is disclosed directly, so use the proxy: the company's gross profit rate, 24.2% of net sales in fiscal 20264. Private brands are the main structural lever on it. A rising rate with flat prices means the own-label share is growing.

Moat trajectory: Widening

The move upmarket is the change. bettergoods is an attempt to capture the affluent shopper at the top of the basket rather than the bottom, which fits the reported share gains led by upper-income households and takes private label into categories where the margin is better and the branded incumbent is more vulnerable.

The number that tests this moat
Moat Explorer calc
Gross profit rate
24.2% of net sales

$171,018M of gross profit on $706,413M. Private brands are the main structural lever on it, and Walmart does not disclose their share. A rising rate with flat prices means the own-label mix is growing.

Source: Moat Explorer calculation from the FY2026 Form 10-K ↗
⚠ Threats to the moat
⚠ THREAT 01
The Supplier on the Next Facing Also Buys the Advertising
Walmart squeezes the wholesale price, takes share with own-label, and charges for visibility on top — and only one of those can grow at forty per cent…
References
  1. ReportedGreat Value, Equate, Mainstays, Marketside, Freshness Guaranteed, Ozark Trail, onn., Time and Tru, Athletic Works, Parent's Choice, Hyper Tough, bettergoods, George, Joyspun, No Boundaries, Spring Valley, Way to Celebrate, Wonder Nation.
    Walmart Form 10-K, fiscal year ended January 31, 2026 - Item 1 Business and Item 2 Properties (approximately 280 million customers a week across more than 10,900 stores in 19 countries; 2.1 million associates, 1.6 million in the U.S.; 4,611 Walmart U.S. retail units of which 3,728 owned, 601 Sam's Clubs of which 464 owned, 5,743 international stores of which 1,486 owned; 3,566 supercenters at 633,724 thousand square feet, 351 discount stores at 36,609, 694 neighborhood markets and small formats at 36,609/28,375 with a 42,000 average; 192 U.S. and 179 international distribution facilities, 149 owned; pickup and delivery at over 8,400 locations globally; EDLP and EDLC; private brands; competition; Flipkart and PhonePe majority stakes in 2018) — FY2026 (ended January 31, 2026) · publ. March 13, 2026 · source ↗
  2. ReportedThat is a deliberate contrast with Costco, whose Kirkland Signature is roughly a third of sales and is a genuine reason members renew.
    Costco Form 10-K, fiscal year ended August 31, 2025 - Item 1 Business (membership counts and renewal rates, warehouse and gas-station counts, under 4,000 SKUs, Executive tier and the 2% reward, human capital and wages, competition, Kirkland Signature) — FY2025 · publ. October 8, 2025 · source ↗
  3. Reportedbettergoods, launched into the premium food space, is an attempt to capture the trade-down customer at the top of the basket rather than the bottom — which fits with the company's own report of share gains led by upper-income households.
    Walmart second-quarter fiscal 2027 earnings presentation (Form 8-K exhibit 99.2) - Walmart U.S. comp sales +2.6% with transactions excluding fuel +1.5% and average ticket excluding fuel +1.1% against total like-for-like inflation of 1.4%, and an approximately 125 basis point pharmacy headwind from maximum fair price regulation; eCommerce +24% including approximately 43% growth in store-fulfilled delivery, total advertising +38% including Walmart Connect +43%, and Marketplace sales +52%; expedited deliveries under three hours approximately 37% of store-fulfilled orders; share gains across categories and income tiers led by upper-income households — Q2 FY2027 · publ. August 20, 2026 · source ↗
  4. Moat Explorer calcNothing here is disclosed directly, so use the proxy: the company's gross profit rate, 24.2% of net sales in fiscal 2026.
    Moat Explorer calculation from figures in Walmart's own filings: global eCommerce of about $150.4 billion (Walmart U.S. $99.6B + International $35.8B + Sam's Club $15.0B) against $120.9 billion, a $29.5 billion increase against a $31,875M rise in net sales ($706,413M against $674,538M), about 92%; Walmart U.S. selling floor of 698.7 million square feet (633,724 + 36,609 + 28,375 thousand) and net sales per store of $104.7 million ($482,975M over 4,611 stores); operating margin 4.18% ($29,825M/$713,163M) against 4.31% ($27,012M/$648,125M); net margin 3.07%; gross profit rate 24.2% ($171,018M/$706,413M); grocery 59.1% of Walmart U.S. net sales ($285,482M/$482,975M) against 59.8% ($264,210M/$441,817M) and grocery growth of 3.4%; general merchandise to grocery ratio 0.40 against 0.43; health and wellness +26.7% ($54,898M to $69,547M); payables less inventories $4,210M ($63,061M less $58,851M); rent 0.34% of revenue ($2,434M/$713,163M); capital expenditure 64% of operating cash flow ($26,642M/$41,565M); a 1% overrun on $147,943M of expense is $1,479M; eCommerce penetration 27.5% international ($35.8B/$130,423M) and 20.6% at Walmart U.S. ($99.6B/$482,975M); shareholder returns $15,587M ($7,507M dividends plus $8,080M repurchases) against $14,923M of free cash flow; Q2 FY2027 net income attributable down 9.4% ($6,366M against $7,026M); Walmart U.S. comparable sales of about 3.9% excluding the 125 basis point pharmacy headwind — FY2024-Q2 FY2027 · publ. September 2026 · source ↗
Sources
Generated September 22, 2026