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Costco believes in its model

  • Costco (COST -0.8%) could feel some pain due to their low reliance on e-commerce, warns retail consultant Jan Rogers Kniffen.
  • The retailer has seen its store traffic hold up well amid a soft retail atmosphere, but critics think it could be missing an opportunity even with online sales in the billions already.
  • Despite the jabs, it's unclear if the criticism is even anything that even bothers the company with execs maintaining that Costco's off-price business model doesn't translate perfectly to online selling.
  • "We don't believe everything will be online. It will be part of the panorama out there," says CFO Richard Galanti.
Comments (12)
  • wyostocks
    , contributor
    Comments (7625) | Send Message
     
    It is totally unrealistic to think that the items bought at Costco could be shipped by UPS.
    Ever seen the shopping carts at the checkout at a Costco?
    22 Jan, 11:45 AM Reply Like
  • santangelog
    , contributor
    Comments (3) | Send Message
     
    COST is best at what it does.....off line shopping never going away and those that do it best will thrive....so will COST
    22 Jan, 11:53 AM Reply Like
  • movies555
    , contributor
    Comments (603) | Send Message
     
    I think Costco is one of the very few B&M retailers whose model works well going forward. Not worried that Costco isn't focused on e-commerce, but I do think they will figure out opportunities if they present themselves.
    22 Jan, 12:31 PM Reply Like
  • plantsperson
    , contributor
    Comments (3) | Send Message
     
    A lot of people go to Costco for groceries, including fresh produce and meat. That is unlikely to be replaced by online shopping. Moreover, a lot of there sales are "unintended" that come from the shopping process...seeing it at a bargain price means buying it.
    22 Jan, 01:11 PM Reply Like
  • plantsperson
    , contributor
    Comments (3) | Send Message
     
    biotech sports and plants
    22 Jan, 01:11 PM Reply Like
  • devinvestca
    , contributor
    Comment (1) | Send Message
     
    I think COST is next sears!
    22 Jan, 01:11 PM Reply Like
  • plantsperson
    , contributor
    Comments (3) | Send Message
     
    Many people who go to Costo shop for groceries, including fresh produce, prepared foods and meat. That won't happen online. Secondly, a lot of their sales come from unintended purchases where someone is shopping for something else but sees a bargain too good to pass up. This will not happen online to the same extent. It is par of the Costco experience.
    22 Jan, 01:11 PM Reply Like
  • dnljansa
    , contributor
    Comments (4) | Send Message
     
    Just today I received an E-Mail from Costco offering services online.. from bottled water to business services.. They are not avoiding the opportunities.. just carefully getting involved where it will work for them and their customers..

     

    Try buying gasoline on line...
    22 Jan, 08:23 PM Reply Like
  • philip.sather
    , contributor
    Comments (3) | Send Message
     
    Costco is unique in what it does ...my daughter with her husband and 2 small children shop there because of price...because they have a lunch counter to take a break at ...and it is very open feeling, not overpowering shelves that smother you ...I hope costco continues this style of store
    22 Jan, 08:23 PM Reply Like
  • bookie71
    , contributor
    Comments (26) | Send Message
     
    We buy a lot of our office supplies (laser cartridges, clips, portfolio folders, etc) form Costco.com as it is cheaper and delivered right to door.
    We buy fresh fruit, vegetables, meat, and other items from the warehouse.
    Totally different concept and reasoning for each.
    22 Jan, 11:30 PM Reply Like
  • philip.sather
    , contributor
    Comments (3) | Send Message
     
    I was a little currius about their online sit so i checked out if they had luggage. ...seems like a good online site to me...http://bit.ly/1hOEnel
    23 Jan, 11:28 AM Reply Like
  • fiasco jones
    , contributor
    Comments (95) | Send Message
     
    talk about nit-picking, he is looking at things completely wrong-headed. The lack of online sales presents an OPPORTUNITY, a chance to increase market share by exporting value out of the stores. 90% of online items aren't available in stores, they will slowly assimilate a different demographic. Not saying they will put Amazon out of business, but they will compete ferociously, likely adding elements that tie in to their brick and mortar stores, something Amazon can't do. Costco turns brick and mortar into an asset like no other. Own them and Amazon and rule retail.
    28 Jan, 11:03 AM Reply Like
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