Costco | Assignment Help
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Costco Wholesale Corporation and its subsidiaries in 1983 started its operations in Seattle, Washington. It merged with The Price Company in October 1993, that initiated the membership warehouse concept in 1976, and created Price/Costco, Inc., a Delaware corporation. After the non-warehouse asset spin-off in January 1997 to Price Enterprises, Inc., the Costco Companies, Inc. name was adopted. Then in 1999, the Company reincorporated from Delaware to Washington and Costco Wholesale Corporation name was rehanged, which trades under the symbol “COST” on the Nasdaq Global Select Market Costco. It currently operates 785 warehouses, that include 12 in Australia, 546 in the Puerto Rico and United States, 39 in Mexico, 100 in Canada, 26 in Japan, 29 in the United Kingdom, 13 in Taiwan, 16 in Korea, 2 in Spain, 1 in France, 1 in Iceland and 1 in China. The company has e-commerce sites in Canada, US, UK, Japan, Taiwan, Korea and Mexico.
Being the seventh largest global retailer, it develops programs and benefits and adopts welfare strategies for their employees, alongside it strives to develop an environment that fosters employee loyalty. At times, giving over employee benefits aren’t seen favorably by people in the investment community; though the company’s former CEO and co-founder, Jim Senegal, strongly believes that employees’ loyalty and satisfaction results in profit and expansion in the long run. It is a bit in contrast to policies followed by Walmart, well few analysts doubt that Costco’s policies for employees would pay off.
The company operates membership warehouses grounded on the idea that offers low prices to members on a limited private-label product and nationally branded in diverse categories that will rapid inventory turnover with high sales volumes. It is when considered with the operating efficiencies attained by efficient distribution, volume purchasing, self-service warehouse facilities and decreased handling of merchandise in no-frills, these turnover and volumes allows to operate profitably at lower gross margins as compared to other retailers
The company offer merchandise in these below-mentioned categories:
- Food and Sundries (it includes packaged foods, dry foods, snack foods, groceries, cleaning supplies, candy, non-alcoholic and alcoholic beverages)
- Fresh Foods (it includes bakery items, meat, deli)
- Soft lines (it includes small appliance and apparel)
- Hard lines (it includes electronics, patio and garden, major appliances, hardware, health and beauty aids)
- Ancillary (it includes pharmacy and gasoline businesses)
This industry is highly competitive and Costo is giving competition on the basis of merchandise quality, location, price and selection, convenience, customer service and distribution strategy. Worldwide, the company competes with national, global and regional retailers and wholesalers, which include supercenters, supermarkets, gasoline stations, internet retailers, department and speciality stores, hard discounters and operators selling narrow range of merchandise or a single category. Amazon.com, Target, Walmart and Kroger are among the substantial general merchandise retail competitors. The other warehouse clubs’ competitors are BJ’s Wholesale Club and Walmart’s Sam’s Club, and other US main metropolitan areas certain of international locations hold various club operations.
More than 100 million people worldwide hold a Costco membership card. The company expands its investment into vertical integration with a greenhouse operations and new poultry complex. Its operational conveniences involve online pick-up order through warehouse lockers and self-checkout. The company has launched a digital membership card and in the year 2020, it has acquired In novel (which is now Costco Logistics) in order to improve last mile delivery offerings. During the Covid-19 pandemic, the Costco employee showed exceptional teamwork which raised the eCommerce growth, an increase shown by 50% and above as delivering at doorsteps with ease was the key. Currently, its online stores and services continue to modify and expand globally, in Japan, Canada, United Kingdom, U.S., Mexico, Taiwan, South Korea. In 2021, the company’s financial revenue for the quarter ending February 28 has been $44.769 billion showing a 14.58% increase over the year.
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