While Americans fixate on Costco’s $65 annual membership fee, the more consequential story unfolds in the spreadsheets of retail consolidation. The National Retail Federation’s 2025 Top 100 Retailers list reveals that just 100 companies control more than $2.5 trillion in U.S. consumer spending. Walmart alone captures $568.70 billion. As membership debates proliferate online, the nation’s largest retailers are quietly reshaping American commerce through unprecedented market concentration. The top five retailers command approximately $1.32 trillion—more than half the total revenue generated by all 100 companies on the list.
The Titans of American Retail
Walmart maintains its dominant position with $568.70 billion in U.S. sales, posting 7% year-over-year growth. Amazon follows at $273.66 billion with 9% growth, while Costco claims third place at $183.05 billion despite—or perhaps because of—its membership model. Kroger and Home Depot round out the top five with $150.79 billion and $148.21 billion respectively. Collectively, these five retailers generate $1.324 trillion annually, with Walmart’s domestic sales nearly doubling Amazon’s. The mid-tier reveals a mix of pharmacy giants and regional grocery anchors: CVS Health at approximately $115 billion, Target at $107 billion, Walgreens at $116 billion, Lowe’s at $84 billion, and Albertsons at $80 billion. These companies illustrate resilience in essential categories even as broader retail undergoes seismic shifts.
The Divergence: Discount Surge vs. Department Store Collapse
The data exposes a stark bifurcation in retail performance. Discount grocers surge ahead with strong growth: Sprouts Farmers Market grew 13%, and Grocery Outlet expanded 10%. Dollar General, now exceeding $40 billion in annual sales, continues expanding into rural markets despite moderating growth. Meanwhile, traditional department stores hemorrhage revenue. Macy’s declined 3% to roughly $22 billion, Nordstrom dropped to approximately $15 billion, and Kohl’s plummeted 7% to approximately $15 billion. J.C. Penney and Dillard’s face similar trajectories, reflecting an existential crisis for mall-based retail. Economic uncertainty drives consumers toward value positioning, rewarding retailers that prioritize affordability over traditional shopping experiences.
Specialty Retail and the Online Insurgency
Off-price retailers thrive as consumers hunt bargains. TJX Companies leads with approximately $54 billion in sales, while Ross and Burlington gain market share from faltering department stores. Athletic retail witnessed dramatic consolidation: JD Sports’ $1.1 billion acquisition of Hibbett transformed the company into a footwear powerhouse, while Lululemon capitalized on athleisure demand with strong growth. Online-native retailers continue their ascent. Chewy dominates pet e-commerce at $12 billion, pressuring traditional players like Petco and PetSmart. Shein and Temu disrupt fast-fashion and general merchandise with ultra-low pricing models, though trust issues plague platforms like Wish. Regional players demonstrate surprising resilience through deep category expertise: Tractor Supply thrives at $14 billion serving rural America, Hobby Lobby at $8 billion and Michaels at $5.3 billion maintain strong positions in craft retail, and Ace Hardware’s franchise co-op model generates $9.5 billion by leveraging local advantages.
Membership Models and Market Concentration
Costco’s $183.05 billion in sales and 4% growth must be understood within this consolidation context rather than as an isolated membership debate. The warehouse club model—including Sam’s Club at approximately $90 billion and BJ’s Wholesale at $20 billion—demonstrates that membership fees strengthen customer loyalty and reinforce perceived value. Amazon Prime, Chewy Autoship, and similar programs lock consumers into ecosystems that prioritize efficiency over convenience. Traditional retail faces mounting pressure: Best Buy struggles with electronics declining, pharmacy chain Rite Aid collapsed following bankruptcy, and Bed Bath & Beyond shuttered stores nationwide after spectacular failure. Consumers benefit from lower prices driven by operational efficiency, but face diminishing choice as local retailers vanish and market power concentrates among a handful of national chains.
The retail revolution underway is not about Costco memberships—it concerns fundamental market structure. One hundred retailers control $2.5 trillion in consumer spending, with the top five capturing more than half. Department stores collapse while discount chains flourish, specialty retailers consolidate around category winners, and online platforms disrupt traditional models. Membership programs align incentives: customers perceive return on investment, retailers secure loyalty and data. As Walmart, Amazon, Costco, Kroger, and Home Depot tighten their grip on American commerce, shoppers gain efficiency but surrender the diversity of choice that characterized retail for generations. The question is not whether Costco’s fee represents value, but whether such extreme market concentration serves the broader public interest.
Sources:
National Retail Federation (NRF) 2025 Top 100 Retailers List. National Retail Federation, 2025.
Kantar Retail IQ. Top 100 Global Retailers Database. Kantar, 2024-2025.
U.S. Census Bureau. Quarterly Retail E-Commerce Sales Report. U.S. Census Bureau, Q3 2024.
Yahoo Finance. Retail Stock Performance and Sales Data. Yahoo Finance, January 2026.
Reuters. U.S. Retail Sales and Department Store Performance. Reuters, December 2024.