Costco Case Study Essay

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It’s just before 11 on a Saturday morning in December at Costco Iwilei, and the front clicker proudly boasts that over 300 members have already walked through the doors. Considering that Costco opens to the general public at 9, this is an impressive calculation. What may be even more impressive is that this island location, year after year, is the number one sales location in the entire chain. The first major club store introduced to the Hawai’i market, Costco opened its Salt Lake store in 1988, later moving to the current Downtown Iwilei location in 2002. Although the concept was new to Hawai’i, it was an instant success. With the Hawaiian culture of Ohana and its multigenerational households, Costco’s model of being able to buy in bulk,…show more content…
Certainly, bulk buying at steep discounts is what drives Costco’s consistently increasing membership numbers. With the constant rotation of items, and inventory that turns over at a faster rate than the company average of 32 days, it’s the discovery of that certain something that you never knew you needed, Costco’s “treasure hunt,” that lures shoppers to return to the store to discover what new product lines are being sold. Additionally, the practice of moving products around within the warehouse helps to put customers in front of items they may not have bought…show more content…
What the average shopper may not know is that, each day, Costco opens its doors early to numerous restaurants, food trucks, day and elder care, and a variety of other businesses who meet volume restrictions. Additionally, delivery trucks can frequently be seen around the island. “We run a successful delivery service with six trucks operating Monday through Friday.” Winburn continues, “Toilet paper and gasoline are our highest volume products, however we also see record volume in cooking oils, sugars, and

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