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Costco Will Be a Thing of the Past and Here’s Why

dougp26364

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That's really sort of a fluff article. I think you could have said similar things about Sears 20 or even 30 years ago. Costco, like any other retailer, will have to adapt or become extinct. For instance in the 60's and 70's five and dime's were all the rage. Who shops at Woolworths or TG&Y anymore. Would Millennials even know what they were? The difference today may be how quickly retailers need to adapt compared to a few decades ago.

I've become comfortable ordering some items online vs buying them at a brick and mortar store. Largely because the variety online is so much greater and so much easier to browse. OTOH I still prefer brick and mortar shopping for the big ticket items like electronics, bedding or home décor. I've had enough electronics delivered defective that I know longer order them online. I also avoid Walmart for most electronics that can be damaged if tossed around like a basketball in the store room.
 

pedro47

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I agree Costco must change to stay competitive with Amazon.
 

DaveNV

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Costco keeps its corporate eye firmly on their business model, and they are always adapting to the market. Amazon fills a great niche, but there will always be a demand for a warehouse store. Where else are you going to go for a one-stop to get cheap gas, a fresh rotisserie chicken, all that alcohol, and a buck-fifty hot dog & soda on the way out the door? Add in the bulk sizes, seasonal offerings and roadshows, impulse buys you didn't know you needed, and a great selection of jewelry and watches at ridiculous prices, and Costco remains in business. Amazon can do a lot, but they can't do everything.

Dave
 

bizaro86

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There are things the article presents as facts with links, but then the links say something entirely different.

As an example, the article says sales are down, but provides a link to an article saying gross margins were down (in q3 2017). Sales were up, but they earned less per dollar of sales because of product mix. In fact, way at the bottom it notes sales were up 15.7% in 2017. I would suggest if that had been edited by anyone prior to publication, the fact that sales weren't both down and up would probably have been caught.
 
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Talent312

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The Cheat Sheet is fluff with a bunch of advertising.
Occasionally, I find the fluff entertaining, but that's all it is.
 

bbodb1

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I agree Costco must change to stay competitive with Amazon.

But I do not see these two as being direct competitors either. Costco fills a different niche than Amazon IMO.
 

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SmithOp

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Bah, just clickbait. Costco has a home delivery service and its integrated in Google Express also.


Sent from my iPad using Tapatalk Pro
 

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I agree with dougp in fact it wouldn’t surprise me if the amazon business model would be extinct in 20-30 years
 

Sandy VDH

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I love Costco and am a Amazon Prime member. I think they complement each other.

Some things I would only buy at Costco, because of their return policy. I order things at Amazon that I can't get at Costco.

But Costco is my staple for salad, produce, meat, and frozen products. Gas is also great at costco. Electronics are great at Costco because I can try it and if I don't like it, I can return, no questions asked.
 

BobDE

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Costco keeps its corporate eye firmly on their business model, and they are always adapting to the market. Amazon fills a great niche, but there will always be a demand for a warehouse store. Where else are you going to go for a one-stop to get cheap gas, a fresh rotisserie chicken, all that alcohol, and a buck-fifty hot dog & soda on the way out the door? Add in the bulk sizes, seasonal offerings and roadshows, impulse buys you didn't know you needed, and a great selection of jewelry and watches at ridiculous prices, and Costco remains in business. Amazon can do a lot, but they can't do everything.

Dave

I agree with Dave. We have BJs, which is our version of Costco, and we love it. It is not in competition with Amazon in our world. Hope it is here forever!
 

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In our case we are big Amazon fans. We also have a Costco and BJ’s membership. The reason for two wholesale club memberships is because Costco provides some services that BJ’s doesn’t, such as hearing aids. Amazon is our main go to not so much for the free shipping as it is for the large inventory of items available within a particular product. For example if I walk into Costco or BJ’s looking for flea treatment products for our cat, we are usually only going to find one brand available, mainly because it’s not something they are going to waste a lot of shelf space to merchandise. But on Amazon I can get access to all the different brands out there. Also, we like Amazon NOW for items we need now but don’t want to fight the traffic to get! Recently I bought a new wireless router from them that was delivered in two hours. Small delivery charge but well worth it by not having to fight the idiots on the road or waste the gas.

BJ’s is physically the closest to us but that’s still eight miles. We go there every couple of weeks to pick up a few items in bulk. If needed will purchase gas while there since it’s usually even cheaper than Costco. But, I’m not going out of the way to save $.10 a gal on gas! Let’s see, I put 15 gals in and save $1.50 woo hoo! But then again, it cost me close to a gal of gas to get there and back! Duh.

Costco is nice to go to and see products we usually don’t see at BJ’s but really never go unless it’s something related to my hearing aid. Although I did buy a whole loin strip the last time there that I cut into some nice thick steaks. But, I could have bought the same at BJ’s. Costco is more like 30 miles round trip and right in the middle of a major shopping area. I try and stay out of thos areas like they have the plague. I don’t buy their chickens or there hot dogs but it always amazes me to see how many people actually go there to have lunch.

Costco, like BJ’s, Sams Club, etc will eventually go away. That’s just a fact of life. Things change. I remember when Sears and Montgomery Wards were the major department stores. Look at how that worked out. Someone will come up with the next greatest thing that will put all of them out of business someday. Wouldn’t be surprised if it was a disgruntled millennial.
 

theo

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Costco, like BJ’s, Sams Club, etc will eventually go away. <snip> Someone will come up with the next greatest thing that will put all of them out of business someday.

Perhaps, but I frankly cannot even begin to imagine how or why the Costco / BJ's warehouse club model might somehow fail anytime in the next decade or two. Then again, I admit that my crystal ball has not been working very well lately. :shrug:
 
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And then there are people like me that don't use either one.
I'm with you on this. I've never been in a Costco (or Sam's Club for that matter). I think I may have bought something from Amazon a number of years ago.

George
 

geekette

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The market will decide. Nobody knows how it works out until it works out.

I don't see Costco and Amazon as competitors, they simply do different things. People use what fits their lives. When their lives change, they start using what then fits their lives.
 
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