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The Puget Sound Business Journal reports that Costco’s growth rate in its web-based sales is roughly five times that of its fleet of stores.

“ did the equivalent of more than three stores' sales last year at $376.6 million and is seeing 50 percent growth so far this year,” according to the Journal, while the company’s overall sales growth is about 10 percent.

“Like Costco's stores, the secret to's success is its narrow product range and focus on value-priced luxury goods,” the paper reports. “With just 2,400 items, sees a hefty average purchase of nearly $500, where many e-commerce competitors are happy to see the average sale top $50.

“'s merchandise mix is selected so that it doesn't compete with but rather complements the goods found in Costco's warehouse stores,” with top-selling online categories “computers, digital cameras and flat-screen televisions, furniture, jewelry and sporting goods.”
KC's View:
Costco understands that while the Internet is never going to replace brick-and-mortar, it is a valuable supplement for the company’s mainstream business.

Amazingly, there are still retailers out there who believe that the Internet is just a phase, that they don’t need to have a web presence and way to reach out to their shoppers in new and different ways.

Not only are these retailers out of touch with technology, but they are out of touch with their consumers.

And out of touch means that eventually they’ll be out of business.