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Costco Wholesale Corp

Costco is one of the top discounted retailers in the country. As of January 2015 Costco reached the second place in its industry, between Walmart and Target. Costco Wholesale Corp has a wide variety of products such as groceries, beauty items and electronics, as well as other SBU’s (Refer to index #) that operate along the main warehouse stores.
According to the quarterly update in Warehouse Clubs and Super Store industry by First Research: Costco’s main customers are generally small business’ and families with large households (five or more persons) that seek to purchase groceries and other products at lower prices, thus making Kirkland and other Costco owned brand names very appealing in the grocery market section. Costco brand names have demonstrated high levels of acceptance among its customers. Craig Jelinek, Costco president and chief executive officer, explains that “All Kirkland Signature products must be equal to or better than the national brands, and must offer a savings to our members,” (Kirkland Official site).
Differently than other supermarkets and retailers, Costco carries a fewer selection of stock keeping units: around 3,500 and 8,000 which accounts to 25% of SKU’s normally found in supermarkets and retailing stores (First Research 4). Nevertheless, Costco has shown to be more efficient than its competitors rotating its products, to the point that they would sell all the merchandise before the payment to suppliers is normally required, putting Costco at a very advantages position to its competitors while creating confidence with its distributors that can rely on the fact that they will get their payment on time.


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