Who Is What Attracted Us To Costco

748 Words3 Pages

What attracted us to Costco was that it has a strong membership group, which translates into loyal shoppers. The company also has a strong brand that customers know and feel like they get great value at a low price. Continually growing in net sales and net income despite a very competitive market. Our idea that attracts us to Costco is what they don’t have and are not known for is smaller stores that still give customers great value in smaller packs along with customer service which Costco is not known for. In regards to customer service we feel there is nowhere to go but up and we feel Costco has the financial means to build these stores and create a simple service program that customers will recognize immediately versus their …show more content…

Costco excels by having fewer choices to choose from and focusing on volume translating into lower prices for customers. Costco supply chain efficiency is industry leading. An integral component of Costco’s supply chain efficiency is the cross-dock distribution (depot) facility. Meaning that Costco purchases straight from the manufacturer and then has the merchandise transported to a cross-dock warehouse that will then truck to the stores. In addition Costco believes in paying its employees a higher wage because that equals happier employees who take their work seriously. Higher wages also mean that Costco will employ a higher quality employee from the preexisting pool of candidates that retail chains compete …show more content…

They do not have as many stores meaning that the average store approximately receives 100 million dollars a year in sales. Costco focuses on selling in bulks with larger sized quantities and focuses less on everyday goods. Doing this means they are able to increase the volume of particular items and keep prices low. In addition, Costco has perfected a purchasing strategy known as the “treasure hunt” which refers to new incoming items and deals that spontaneously come and

More about Who Is What Attracted Us To Costco

Open Document