Walmart's Worst Nightmare? A Little Discount Grocery Chain Named WinCo

×
BART AH YOU / THE MODESTO BEE--  EXTERIOR:  WinCo Foods store on plaza parkway (the old Costco building), Monday afternoon during opening day.
Alamy
A discount grocery chain is being called "Walmart's worst nightmare." WinCo, a Western grocery chain with about 100 stores, has a business model that allows for cheaper prices than Walmart (WMT), writes Brad Tuttle at Time.

WinCo keeps costs low by buying directly from suppliers and eliminating middlemen, according to Tuttle. It also doesn't accept credit cards and has customers bag their own groceries.

A recent Idaho Statesman article about WinCo quoted retail analyst Burt Flickinger III as saying that WinCo was "unstoppable."

"They're Walmart's worst nightmare," Flickinger said.

Much like Costco, WinCo offers a minimalist selection instead of a wide array of brands according to Time.

For instance, WinCo might only carry two brands of toothpaste, while Walmart has more than 40.
Unlike Walmart, whose employees have demanded better wages, the company provides health benefits to employees who work 24 hours per week and a pension.

WinCo is expanding fast, and could convert Walmart's customers, according to Time.

"Generally speaking, shoppers tolerate Walmart's empty shelves and subpar customer service because the prices are so good," Tuttle writes. "The fact that another retailer -- even a small regional one -- is able to compete and sometimes beat Walmart on prices, while also operating well-organized stores staffed by workers who enjoy their jobs, like their employer, and genuinely want the company to be successful. Well, that's got to alarm the world's biggest retailer, if not keep executives up at night."

More from Business Insider

Increase your money and finance knowledge from home

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

Intro to different retirement accounts

What does it mean to have a 401(k)? IRA?

View Course »

Add a Comment

*0 / 3000 Character Maximum

494 Comments

Filter by:
Mary

Our local Winco has a much better stock then our local Walmart. Far, far more then two brands of toothpaste, also they don't mention that Winco is an employee owned corporation.

August 19 2013 at 11:48 AM Report abuse +1 rate up rate down Reply
1 reply to Mary's comment
dembaitnswitch

So how often do you shop at Wal*Mart ?

August 19 2013 at 11:57 AM Report abuse rate up rate down Reply
ggblank1603

Yes--I'm sure that Walmart is shaking in their boots!!!!

August 19 2013 at 11:44 AM Report abuse +1 rate up rate down Reply
michael_vici

中国隐秘共产党从我身上做了二十年人性精神虐待试验,那么牛的人做那么超级流氓下贱的事情,用功能非常强大的纳米分子控制着虐待一个我这样的普通人。做一些下贱不要脸像癞皮狗一样粘着你贴住你去一点点虐待。过去是天天难受,每天失眠,主要是脊椎,心脏,头被控制,并进行互相搭配精神虐待出彩出活。现在我的头被完全的控制住了,用纳米分子散发出气体或者一定形式的液体来进行头部的控制,并能产生出图像和声音,控制住脑子里的主要部位,去带动脑子去想,让脑子纠结的去想一些无关紧要的小事,不想就不行,天天如此。隐秘共产党不一下子伤害弄我,让我一点点逐渐加压的难受我。我的头知道难受不舒服了,却没有感情,去反应。就像一个麻木没有知觉的人一样去承受。眼睛好像被分成好几块一样。目光散发无神。明显的感觉到眼睛里面被控制了。最主要的是我的头想不到其他的事情,没有什么想法,一天到晚被控制住,头部感觉是整体像外散发状的静不下来,沉不下去。所有的想法就是纠结于那些小事情上,我这样活着还有什么意义。还有没有规矩王法,我实在受不了了。我的手机号码:13853788002(中国)

August 19 2013 at 11:36 AM Report abuse rate up rate down Reply
3 replies to michael_vici's comment
toosmart4u

franco, I have plenty of republican friends that shop at WalMart. And they do too. You are out of touch with reality. Now get this, if you are on social security and medicare thank a democrat. If you want to end these two fine programs vote republican. Save your money if you have any.

August 19 2013 at 11:32 AM Report abuse -2 rate up rate down Reply
1 reply to toosmart4u's comment
dembaitnswitch

It's very hard to save money with this administrations failed economic policies and higher taxes coming with Obama care in 2014. The Democrats were the first ones to use Social Security as a slush fund, and Obama care defunds Medicare according to its bylaws. Neither one of those were the result of the Republicans. Could you please explain your delusional post more clearly ?

August 19 2013 at 11:44 AM Report abuse rate up rate down Reply
Nekima

Please bring a WinCo to Saranac Lake NY. I would be happy to shop local again. We NEED a good all around store in this area

August 19 2013 at 11:19 AM Report abuse +1 rate up rate down Reply
1 reply to Nekima's comment
dembaitnswitch

There is an ALDI store on 587 Lake Flower Avenue, Saranac Lake. They are very similar to WinCo.

August 19 2013 at 11:35 AM Report abuse rate up rate down Reply
franco.anastasia

Mindless liberals who fall for the democrat talking points about Walmart being a big evil corporation, need to wake up. There is a reason Walmart can sell goods cheap...LOW OVERHEAD! This dumb obama voters will be the first one's to start begging for more entitlements when they can't afford food, because Walmart raised their prices to pay employee's more and give them benefits.

August 19 2013 at 11:10 AM Report abuse -2 rate up rate down Reply
1 reply to franco.anastasia's comment
rostra

Mindless Conservatve poster, failing to accept the reason they keep prices low, cheap overseas products, underpaid employees, no pension, no healthcare. Instead the majority of WalMart employees rely on State medicaid, and Food Stamp programs, thus you, pay for WalMart's cheapness.

August 19 2013 at 1:52 PM Report abuse +1 rate up rate down Reply
cafebyte

good!!!!!!!!!!!!!!

August 19 2013 at 10:24 AM Report abuse rate up rate down Reply
Fallenrock

Another chain, Aldi, is doing a similar strategy in my area and has become my favotite store. Bye Wally!

August 19 2013 at 10:17 AM Report abuse +1 rate up rate down Reply
2 replies to Fallenrock's comment
Fallenrock

favorite!

August 19 2013 at 10:17 AM Report abuse -1 rate up rate down Reply
johnjjr

yep ALDI is one great little chain.

August 20 2013 at 7:44 AM Report abuse +1 rate up rate down Reply
Dave

Why do they keep comparing stores like this to Walmart instead of Sam's club? If you are going to bring Costco into the conversation, keep the total model equal in the discussion. Otherwise you just make it sound like an anti-Walmart blogger.

August 19 2013 at 10:07 AM Report abuse +2 rate up rate down Reply
pdbliz

People,,,,This is not about Walmart itself,,,,,,It is about our Govermnent trying to get involved with our daily lives and control of what we do and when we do it...
AOL.....GET A LIFE.!!!!!!!!!!!!!!!!!!!

Our new government hates to see a man get ahead in life,,,unless the goverments helps.!!!!!
FEDS,,,,,,,,,I CAN HELP MYSELF.!!!!!!

August 19 2013 at 8:28 AM Report abuse rate up rate down Reply
1 reply to pdbliz's comment
pdbliz

THANK YOU DEMOCRATES FOR ALL YOUR VOTES.!!!!

August 19 2013 at 8:42 AM Report abuse -1 rate up rate down Reply