Around 800 locations/stores without fitting rooms, mannequins or window displays and the company is selling clothes worth US $ 7 billion per year, which is much higher than many top global brands!
Yes, as per reports, apparel sales at Costco, the 4th largest US retailer, are growing – and growing fast. It is increasing by about 9 per cent every year since 2015.
Costco is a US-based multinational corporation that operates a chain of membership-only warehouse clubs. It does about 95 per cent of its business in-store and its 85 million members pay an annual fee of minimum US $ 60, to buy groceries, household items, electronics and apparels at near-wholesale prices.
But how the company stepped into the game!
Reasonable price, extensive fashion range and attractive designs are the few major reasons and notably it has a total revenue of US $ 141 billion, which gives it a massive bargaining power.
“Costco has quietly become an apparel destination,” Washington Post quoted Simeon Siegel, a retail analyst for Instinet. “It is clearly resonating with shoppers and winning over brands at the expense of department stores.”
“Costco does a good job of getting products customers want. Lucky Brand jeans happen to be in the store this week, or North Face jackets. You see people coming back for the treasure hunt,” said Joe Feldman, a retail analyst for Telsey Advisory Group.
