COSTCO

       Costco is a warehouse giant. It’s a membership warehouse club that offer best possible prices on quality brand-name merchandise to its members. Costco has 550 warehouses today that operates in 40 states and 9 different countries. In recent fiscal years, the company has exceeded $64 billion with its total sales. Costco stocks up many merchandise category which includes sundries, hardlines, softlines, fresh food, and others. Sundries include candy, snack foods, alcoholic and non-alcoholic beverages, and cleaning supplies. Hardlines consist of major appliances, hardware, electronics, and sporting goods. Softlines contains apparel, jewelry, and small appliances. Fresh food sales include meat and baked goods while other items beside these categories are gasoline, pharmacy sales, and Costco’s one-hour photo development. 

          While other retail stores are puzzling over why the economic recovery isn't converting into more sales, Costco seems to be doing just fine. Costco run differently and sells differently compared to its competitors. Walmart, Amazon, and grocery chains can’t mimic Costco’s operations. Unlike Walmart, Costco uses a paid-membership business model. Customers need to become Costco members in order to purchase merchandise at discounted price, paying at least $55 dollars per year for the membership. This allow Costco to collect most of its profits 12 months in advance. About seventy percent of Costco’s operating income is generated in this way. Not only Costco lower prices on certain key products, but the company also try to improve its customer experience by carrying out kind return policies, adding gift prizes, and taking several payment methods. More importantly, Costco is always on the move to change its brands and introduces new products in order to provide customers with an enjoyable “treasure hunt” experience.

          

        Costco has a powerful customer focused and employee satisfaction culture where the company pays fair wages and gives good benefits towards the employee to reflect Costco's importance in contributing to the customer experience. So if an employee is happy, then he or she is likely to produce more which would lead to better customer service.