Costco, the world’s largest warehouse retailer, announced a record-setting Black Friday sales event. But even with the impressive numbers, it appears that the retail giant is still struggling to keep up with the rapid growth of eCommerce.
The holiday shopping event saw an 8.2 percent year-over-year increase in same-store sales. This was the best performance since 2016 and was driven by a record number of online orders. Online sales grew an impressive 34.2 percent compared to the same period last year, while in-store sales increased by just 1.3 percent.
Despite these impressive numbers, it appears that Costco is still struggling to keep pace with the rapid growth of eCommerce. This is partly because the retailer’s online offerings are limited compared to its competitors. In addition, Costco’s warehouse locations are not as easily accessible as those of other retailers, which makes it difficult for customers to take benefit of the convenience and ease of online shopping.
With eCommerce sales expected to reach $4.5 trillion by 2021, it’s clear that Costco needs to up its game if it wants to remain competitive. The retailer has already made some progress in this area, including launching a new mobile app that lets customers shop from their phones, as well as making improvements to its website.
In addition, Costco has also started to offer more delivery options. It recently announced its “Costco to Go” service, which allows customers to order items online and have them delivered to their door. This is a great step forward for the retailer, as it allows clients to take advantage of the convenience and ease of online shopping without making a trip to the store.
Costco also needs to focus on improving its pricing strategy. The retailer has long been known for its low prices, but it’s been facing increased competition from online retailers such as Amazon, who offer similar products at much lower prices. To remain competitive, Costco needs to ensure that its pricing is in line with the market.
Finally, Costco needs to focus on customer service. The retailer has long been known for its friendly, helpful staff, but it needs to ensure that customer service remains a priority. This includes making sure that customers are able to speak to a real person when they have a question or concern, as well as providing a seamless online shopping experience.
Overall, it’s clear that Costco’s Black Friday event was a success. But in order to keep up with the rapid growth of eCommerce, the retailer needs to make some changes to its strategy. By focusing on improving its online offerings, pricing strategy, and customer service, Costco can remain competitive in the eCommerce space and ensure continued success in the years to come.
