Business Insider reports on Costco CFO Richard Galanti's comments during an earnings call last week, when he disputed the notion that Costco is in away way Amazon-proof.
"We don't buy that for a minute," he said.
Galanti did not argue with a recent study suggesting that "Amazon's Prime membership program is growing at the expense of traditional warehouse club brands like Costco and Sam's Club."
"At the end of the day, we will expect that. The internet in general is going to take its percentage of different categories," Galanti said, adding that "our value proposition is best served for us when it's in-store getting members to come in and buying when they can see everything there that we have.
Business Insider writes that Galanti said that "Costco will continue to focus on improving its in-store experience while slowly expanding its online presence - although he doesn't see the company offering on-demand delivery service, like food deliveries, anytime soon."
"We don't buy that for a minute," he said.
Galanti did not argue with a recent study suggesting that "Amazon's Prime membership program is growing at the expense of traditional warehouse club brands like Costco and Sam's Club."
"At the end of the day, we will expect that. The internet in general is going to take its percentage of different categories," Galanti said, adding that "our value proposition is best served for us when it's in-store getting members to come in and buying when they can see everything there that we have.
Business Insider writes that Galanti said that "Costco will continue to focus on improving its in-store experience while slowly expanding its online presence - although he doesn't see the company offering on-demand delivery service, like food deliveries, anytime soon."
- KC's View:
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When I say "mostly reality-based" in the headline, I'm referring to the fact that Galanti is smart enough to realize that Costco is not Amazon-proof. In fact, nobody is Amazon-proof.
I do think that Costco, while continuing to add value in-store, has to develop its online offering as well. And Galanti seems to completely aware of this.
