The Wall Street Journal reports that Costco “averages $795 a square foot in annual sales, far above the $516 a square foot at Sam's and more than double the national average at malls. The average Costco store posts $115 million in average annual sales, nearly double Sam's Club's per-store average and almost triple per-store sales at BJ's. And with 449 warehouse clubs and $47.1 billion in annual revenue excluding membership fees, Costco easily outsells Sam's Club with 550 locations and $37.1 billion in comparable revenue.”
Part of the reason that Costco does so well is that it attracts more affluent consumers, sells a broader range of products (ranging from champagne to gasoline), and seems better able to stimulate impulse purchases and treasure hunts that lead to higher average transactions.
Part of the reason that Costco does so well is that it attracts more affluent consumers, sells a broader range of products (ranging from champagne to gasoline), and seems better able to stimulate impulse purchases and treasure hunts that lead to higher average transactions.
- KC's View:
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In other words, Costco competes successfully with Wal-Mart by differentiating itself from the Bentonville Behemoth and from everybody else with an unusual array of products and services.
A lesson worth learning.
