Direct Answer
28 SEC filers are classified under the Standard Industrial Classification codes that describe the broadline retail industry, and their latest annual reports show $2.04 trillion of combined revenue and a median operating margin of 2.9%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Broadline retailers sell a wide range of merchandise from apparel and home to electronics and groceries in large stores and online. Scale, traffic and private brands drive profits, and competition is intense. The first numbers to compare across companies here are comparable sales, gross margin and inventory turns.
Key Industry Metrics
- Comparable sales: Sales growth at stores and online channels open at least a year. It shows demand without the effect of openings, and splitting it into traffic and average ticket reveals its quality.
- Gross margin: Share of sales left after buying merchandise. It is shaped by mix between food, general goods and private label, and by markdowns and shrink.
- Inventory turns: How often stock is sold and replenished in a year. Slower turns can mean overstock and later markdowns, while faster turns suggest merchandise matches demand.
- Digital share: Share of sales made through websites and apps, including store pickup. Growth shows customer shift, but fulfillment costs can make online sales less profitable than store sales.
- Operating margin: Profit after labor, rent and other operating costs as a share of sales. It shows whether scale and traffic cover a large fixed cost base.
Primary Macro Drivers
- Consumer spending: Shoppers' budgets change basket size and mix across categories, setting comparable sales and traffic.
- Promotions and pricing: Discounts attract traffic but cost margin, so comparable sales and gross margin trade off.
- Supply chain costs: Freight, warehousing and fuel are major cost lines, so changes affect gross margin.
- E-commerce growth: Online sales expand reach and convenience but add fulfillment cost, shifting digital share and operating margin.
Major Risks
- Competition from Amazon and Walmart: Larger rivals with lower prices and faster delivery take traffic and force price matching, showing in comparable sales and gross margin.
- Markdowns and inventory: Overstock requires clearance sales that reduce gross margin; watch inventory growth against sales.
- Wage costs: Large store workforces make wages a major expense, squeezing margin when sales are flat.
- Shrink: Theft and loss reduce the margin on goods sold; watch shrink disclosures and gross margin.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Broadline Retail Filers in the SEC Record
28 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 5311, 5331, 5961. Their latest fiscal years end between 2025 and 2026, and together they reported $2.04 trillion of revenue. Median revenue growth over the prior year was 5.2%. Median operating margin was 2.9% and median net margin 2.8%. Median total liabilities were 62% of total assets, and 19 of 28 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Amazon Com Inc | $716.9 billion | 12.4% | 11.2% | 10.8% | FY 2025 |
| Walmart Inc. | $713.2 billion | 4.7% | 4.2% | 3.1% | FY 2026 |
| Costco Wholesale Corp | $275.2 billion | 8.2% | 3.8% | 2.9% | FY 2025 |
| Target Corp | $104.8 billion | -1.7% | 4.9% | 3.5% | FY 2026 |
| Dollar General Corp | $42.7 billion | 5.2% | 5.2% | 3.5% | FY 2026 |
| Coupang, Inc. | $34.5 billion | 14.1% | 1.4% | 0.6% | FY 2025 |
| Macy's, Inc. | $22.6 billion | -1.7% | 4.6% | 2.8% | FY 2026 |
| Cdw Corp | $22.4 billion | 6.8% | 7.4% | 4.8% | FY 2025 |
The 8 largest of 28 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Broadline Retail guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Broadline Retail industry?
Key performance indicators for the Broadline Retail industry include: Comparable sales, Gross margin, Inventory turns, Digital share, Operating margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Broadline Retail industry?
The Broadline Retail industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Broadline Retail industry?
The primary risks for Broadline Retail companies include: Competition from Amazon and Walmart, Markdowns and inventory, Wage costs, Shrink. Investors should assess each company's exposure to these factors and its track record of navigating them.