Seeking Alpha

Costco (COST -0.4%) deserves credit for a clever strategy which has helped it ride out some of...

Costco (COST -0.4%) deserves credit for a clever strategy which has helped it ride out some of the turbulence seen by other large-sized retailers in the sector, according to Business Insider. The Costco advantage: 1) The firm sells fewer items within each category. 2) Costco can control costs easier with customers buying in bulk. 3) A subtle mix of higher-end brand names such as Coach or Dom Perignon is a margin driver. 4) Paying an up-front membership motivates customers to return instead of seeking bargains elsewhere. 5) By skipping out on advertising, Costco can invest in other areas.
Comments (2)
  • bgold1955
    , contributor
    Comments (1879) | Send Message
     
    A great place to shop. Also, you get dollars backed based on dollars spent with their Amex credit card. Higher percent back for gas purchases that make the price per gallon even lower than the consistently lowest gas price in my area. Great deals and long COST.
    7 Mar 2013, 03:42 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    How many skus do the average warehouse have?

     

    I recall just over 1000, but it must be much more now.
    7 Mar 2013, 10:08 PM Reply Like
DJIA (DIA) S&P 500 (SPY)