Even With a Surge in Online Sales, Costco Continues to Focus on Brick-and-mortar as Well
It is no secret that retailers have seen a shift to e-commerce this year, thanks to the pandemic. Despite that shift, Costco still plans on making its brick-and-mortar stores one of its priorities.
The Statement
Craig Jelinek, the Costco CEO, talked to CNBC and explained that the retailer would continue to consider the in-store experience as critical. Jelinek told CNBC that he does not predict brick-and-mortar will disappear anytime soon, especially for Costco.
At the same time, Jelinek expects that the retailer’s online business will keep growing. He also told CNBC that the company does not plan on “getting tricky.” Instead, the company will focus on bringing value via quality merchandise and high-end goods, as it has. This will continue to be through the brick-and-mortar and online warehouses.
According to Jelinek, Costco still wants to get people into the stores. He let CNBC know that Costco will continue to do so with its famous promotions like the $4.99 rotisserie chicken and $1.50 hot dog.
Costco’s Recent Figures
For an idea of the extent to which Costco has experienced an increase in e-commerce, consider some figures. Looking at the 13-week period that ended November 29, Costco’s e-commerce sales increased 82% year-to-year. The total comparable sales increased by 14.5%. The fourth fiscal quarter saw a year-over-year increase of 91% for online sales.
Costco Is Investing in Its Future
In addition to its continued focus on online and in-store experiences, Costco is making investments to improve its future. This includes in March when it bought Innovel Solutions, a company for last-mile delivery services. Jelinek sees significant opportunities for this service in large-ticket items.
The retailer does not seem to have any major concerns for its future. Jelinek also expects people to continue buying essentials and sanitary items, like toilet paper, in bulk for at least half a year or so.
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