Gerald Storch, CEO of Storch Advisors and former Toys”R”Us and Target executive, reacts to a strong November retail report and explains how the industry’s winners are “value-based” players.
Costco members on social media have pointed out some things about the warehouse retailer that they think could be improved.
While there’s a lot to like about Costco, members of Subreddits dedicated to Costco identified crowds, layout and the retailer’s website as sometimes being pain points in their shopping experience.
In a Reddit thread Last month, focusing on Costco’s positives and negatives, several people pointed out the crowds at the retailer’s warehouses, with one user describing them as “weirdos.”
Customers lined up at checkout lines at a busy Costco store in Queens, New York. (Lindsey Nicholson/UCG/Universal Images Group / Getty Images)
“I like Costco and I know the products are good and the policy is good, but I really can’t do the waiting in a parking space and the long lines every time I need a quick item ” said another Reddit user.
COSTCO BOARD MEMBER DEFENDS DEI PRACTICES, REFIRMS COMPANY DISPOSAL POLICIES
“Every time I go to Costco, no matter the day or time, I encounter huge crowds, with the checkout line on average being halfway to the back of the store,” said said a Costco member in a separate thread three months ago. “Every aisle is filled with people, and the situation is made worse by the free samples which create artificial traffic jams at every intersection.”
Some users reported experiencing fewer people during their visit at certain times, such as shortly after opening or near closing.
The layout of Costco warehouses, as well as the retailer’s practice of changing item locations and frequently changing offerings, have been discussed in threads on the Costco subreddit.
A user suggested the retailer having a map or adding signs above their warehouse aisles could be helpful, saying they spend “a lot of time going back and forth through each aisle” looking for items.
“You can’t count on an item you love/need to stay in stock because Costco continually changes its inventory,” said another. “But that also means they have new things all the time.”
Other criticisms of the layout focused on traffic flow inside Costcos, near entrances and checkout areas.
Costco might also be making updates to its website, according to fans on Reddit. Some have commented on its functionality and appearance.
Customers wait in line to pay at a Costco store on December 11, 2024 in Novato, California. (Justin Sullivan/Getty Images/Getty Images)
Meanwhile, others have suggested that Costco should integrate “scan and go” technology into its shopping experience.
FOX Business has reached out to the warehouse retailer for comment.
In its latest annual filing with the Securities and Exchange Commission (SEC), the company said its concept focuses “on offering our members low prices on a limited selection of national brand and private label products in a wide range of categories” that “produce high sales volume and rapid inventory turnover.” It typically has fewer than 4,000 different products in its warehouses at any given time.
COSTCO SOLD A WORLD CRUISE FOR $293,000
Costco noted on its website that there is a “treasure hunt atmosphere” in its nearly 900 warehouses.
“One of the most exciting things about shopping at our warehouses is that you never know what kind of incredible deals you’ll find from one visit to the next,” says a page on the company’s website. business. “And because we’re constantly rotating and introducing new merchandise, we encourage you to purchase the items you’re interested in as early as possible to avoid missing out.”
With its layout, Costco seeks “economy and efficiency in the use of sales space, merchandise handling and inventory control,” according to its most recent annual report. Its entry control and use of memberships helps keep theft at lower levels than other retailers, according to the company.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| COST | COSTCO GROSS CORP. | 943.19 | +23.44 |
+2.55% |
Asked about “scan and go” during Costco’s earnings call last month, CEO Ron Vachris told analysts and investors that the company occasionally hears about the technology.
He said autopay “has been a great option for our members and we’re focused on that.” Costco “will continue to keep an eye on technology and how we can improve that front-end experience that is the one critical point,” according to Vachris.
The company began deploying membership card scanners outside its U.S. warehouses last summer.
Customers enter a Costco Wholesale Corp. warehouse store. in Hawthorne, California on June 12, 2024. (PATRICK T. FALLON/AFP via Getty Images / Getty Images)
The scanners “relieved a lot of pressure on cashiers and queues and led to significant productivity improvements,” Vachris said last month.
BIG WIN OF COSTCO’S “NETFLIX MOMENT”
On the earnings call preceding this, the CEO said he helped Costco with its ability to “adjust the initial lines we need to open and close lines based on fluctuations in business” and have accelerated the payment process by removing “friction”. “membership verification” to the registers, among other advantages.
The company worked on both its website and application.
In September, for example, Costco executives said the company had improved the “native search function” for the U.S. version of its app. Most recently, in December, Chief Financial Officer Gary Millership said Costco “continues[s] to move forward with our technology roadmap and improvements to the member experience, such as adding the functionality to check warehouse inventory through its app.
According to Costco, some 138.8 million people have a Costco membership card.
