Holly Paul’s Post

Morning all! So I went on my bi-weekly Costco Wholesale run this weekend. Bought some new lawn-chairs and they are 🔥🔥 Not the point, but I’m pretty pumped to have some summer campfires with these babies. Last week I really dove into a couple of facts about generating #customerloyalty and utilizing rewards to increase #CLV. On that note, a lot of the research that I did over the past week has really pointed to one underlying concept: #brandloyalty . I bring my trip to Costco up because Kirkland has a cult-like following (and I’m included on that list - I LOVE Costco & Kirkland branded products). . Why…? No seriously, I’m asking why - what’s your favourite thing about Costco and why is it the free samples? Kidding - would love to get your opinion on why Costco/the Kirkland brand has such devout customers! I read somewhere that Kirkland does quality testing for anything branded, and if it doesn't beat the first competitor, then it doesn't hit their shelves. I tried to find a verified source confirming this, but didn't have much luck. So I'm curious as to where that information came from and how it was proliferated. Has anyone heard this about Costco/Kirkland before? Or did the marketing team just do a very fantastic job of getting people to trust Kirkland more? #customerloyalty #customeracquisition #brandloyalty #research #testing #brand

Most know Costco for the $1.50 hotdogs and the story of Costco co-founder Jim Sinegal telling the current CEO "if you raise the (price of the) effing hot dog, I will kill you", but I don’t think people understand the level of operation and thought that goes into each Costco location: - They aim for a low ~14-15% markup on most of their products (for comparison — Walmart aims for ~45%, while Ulta / Sephora aim for ~70%) - There are only 4,000 SKU’s (products) per store and ~40% of those are curated for each region (most grocery stores have 30k+) - Costco starting pay rate is $18.50/hr, and employees get 1.5x on Sundays - Rotisserie chickens are sold at a loss and on avg only on shelves for ~2hrs per day - Was the first company to grow from zero to $3B in sales in less than six years Long live Costco!

Most know Costco for the $1.50 hotdogs, but I don’t think people understand the level of operation and thought that goes into each Costco location: - They aim for a low ~14% margin on most of their products (for comparison — Walmart aims for ~45%, while Ulta / Sephora aim for ~70%) - There are only 4,000 SKU’s (products) per store and ~40% of those are curated for each region (most grocery stores have 30k+) - Costco starting pay rate is $18.50/hr, and employees get 1.5x on Sundays - Rotisserie chickens are sold at a loss and on average only on shelves for ~2hrs per day - Costco was also the first company to grow from zero to $3B in sales in less than six years Long live Costco 🫶

Costco Wholesale 𝗶𝘀 𝗡𝗢𝗧 𝗰𝗵𝗲𝗮𝗽! Ever noticed how Costco isn't just about affordability but a strategic mind game? Sure, their prices are moderate, but the catch is that you're buying in bulk. While Walmart may offer similar items at lower prices, Costco's marketing mastery is what sets them apart. They've masterfully crafted the perception that their profits don't come from product sales; they earn from the yearly membership subscriptions. Plus, who can resist their famous rotisserie chicken and $1.50 hot dog combo? It's all part of the psychological game that keeps customers coming back. As for many people, $𝟵.𝟵𝟵 𝗶𝘀 𝘀𝘁𝗶𝗹𝗹 $𝟵, 𝗻𝗼𝘁 $𝟭𝟬! #Costco #marketingmastery

𝗖𝗹𝘂𝗯 𝗦𝘁𝗼𝗿𝗲𝘀: 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝘄𝗶𝘁𝗵𝗶𝗻 𝘁𝗵𝗲 𝗰𝗵𝗮𝗻𝗻𝗲𝗹 For the most part, the top three warehouse chains have similar strategies and tactics, and proximity is one of the main reasons consumers choose one chain over another. But there are some differences. Costco Wholesale Corporation’s Kirkland Signature private label meets or exceeds national brands in quality, has a very strong following, and accounts for about a quarter of the retailer’s sales. It has a reputation for being one of the best store brands in all of retail, not just in the warehouse club category. While all three retailers have strong store brand offerings, Kirkland attracts the most intense loyalty. “Kirkland at Costco is a very well-known brand with many offerings at a solid price point,” says Brian Numainville, principal at The Feedback Group in Lake Success, NY. Produce Blue Book Story 👉 https://lnkd.in/ghik7si7 #retail #supermarkets #grocery #privatelabel #clubstores #retailers

How about Costco Wholesale's master class on merchandising? What's the ocean freight angle? Simple, Costco can offer you gold bars, and to some serious culinary folks, a 157 piece Le Creuset cookware set for $4,500. Dutch ovens are a big part of the Le Creuset followers. But, alternative brand Tramontina has great dutchies too! So, Costco's brilliant marketers get this viral piece out - and oh no, it's already sold out. But guess what? Costco in just the past 3 weeks has 25 x 40' of the Tramontina dutchies ready to go that aren't sold out. Go looking for the Dutchies from Le Creuset, maybe out of stock? I call it brilliant, a master class in the timing and use of promo/and logistics. A-1, gold medal. #supplychain #retail #masterclass #oceanfreight

Recently this news story about Costco Wholesale made me smile... :) Costco - a company that sells bulk items at discount prices, and has a market capitalization of ~$250 blns, will be soon led by a person who started working there as a forklift driver... I liked 2 things about it: 1️⃣ First, with proper attitude, determination, and hard work - the sky is the limit for anyone (it sounds cliché, but it's true) 2️⃣ And, second, Costco Wholesale, once again showed that its true to its values, which made it so successful Costco is known for its simplicity, efficiency and low-cost structure - it still spends 0 dollars on advertising, despite its size And it approaches people management in the same manner - no need for expensive outsiders, just promote from within, based on their work performance (not background) Perhaps this simplicity and focus on execution, have allowed the company to be so successful and grow from just a single store back in 1983 to its current size with ~900 locations... Btw, the stock outperformed the S&P 500 index almost 6 times (!!!) in that period #costco #business #money #culture #motivation #values #strategy

Costco Wholesale plans to build its largest warehouse club yet in Fresno, California. The location would be 241,000 sq. ft. While this would become Costco's largest location, a big piece of the club would not be open to members. The location would house a 47,000 sq. ft. relocated market delivery operation (MDO) for receiving, storing and loading big and bulky items for Costco’s home delivery service. Costco has generally handled its large-items delivery business from separate locations. At MDO facilities, large goods are dropped off, sorted and loaded for daily deliveries to Costco members. Doing it from its club locations would follow what Walmart and Target do from many of their stores. Perhaps the inclusion of a MDO in club suggests a pivot to a new model. #lastmiledelivery #costco #customerexperience

Customer-centric capability is a competitive advantage. Costco understands people. They understand the business they’re in. It is not “wholesale” or “retsil”, which are superficial definitions that everybody else uses. It is no surprise that they also have a very low (perhaps the lowest) people turnover. Which means people like working there. It is not the assets they have. It is how they use them. It is not about the products but about what they mean for people when they shop there. It is about trust and perceived value. Why else would people pay a fee in advance just to have the privilege to step into their warehouse? They understand people. Better than the rest of options for consumers. And that, in my view, can be a competitive advantage. Reposting an insightful post from Walter Holbrook What do you find distinctive about shopping at Costco? #marketing #branding #management #mentoring