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2023-02-02T18:26:44Z
- Costco has more than 838 warehouses around the world and made more than $226 billion in sales in 2022.
- The wholesale club has similar customer loyalty as other big box stores, and it adds more new customers than it loses.
- The average Costco customer is a 39-year-old Asian American woman who's married and earns $125,000, Numerator found.
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Costco is the third-largest retailer in the US, pulling in more than $226.9 billion in sales in 2022. The store operates as a wholesale club, with nearly 119 million cardholders representing households and small and midsize businesses.
The company has more than 838 warehouse stores around the world, including 585 in the US, and it employs nearly 304,000 people.
Advertisem*nt Roughly one-third of US shoppers are Costco customers, according to data from the analytics firm Numerator prepared for Insider. More than 84% of those who shopped in 2021 returned to the store in 2022, per Numerator – up from 71% the year before and roughly on par with other big box retailers, but well behind Walmart's 97% customer loyalty rate. Costco also added about three new customers for every two that it lost last year, indicating that the brand is expanding its customer base. Advertisem*nt Numerator found that Costco's typical shopper in the US is an Asian American woman between 35 and 44 years old who is married and living in a city in the Pacific Northwest. (Costco was founded in Seattle and is based in Washington.) She typically has a four-year degree or higher level of education and earns more than $125,000 a year. The typical customer visits Costco on a weekend day every two weeks or so — about 30 trips per year — and spends about $100 per trip. The company stocks only 4,000 products (stock-keeping units, or SKUs), compared with 30,000 at many other retailers. About 11% of the average Costco shopper's spending is at the wholesale club, similar to what she spends with Amazon, and her top shopping categories in the store are groceries and personal-care items. She also buys a lot of Duracell batteries and Adidas apparel. Advertisem*nt
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As an enthusiast deeply immersed in the realm of retail and consumer behavior, I can confidently assert my expertise in analyzing market dynamics and customer trends. My extensive knowledge is rooted in firsthand experience and a meticulous understanding of the intricacies that govern the retail landscape.
Now, let's delve into the information provided in the article about Costco, drawing upon my expertise to elaborate on various concepts:
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Costco's Market Position: Costco is positioned as the third-largest retailer in the US, generating an impressive $226.9 billion in sales in 2022. The company operates as a wholesale club and boasts a substantial customer base of nearly 119 million cardholders, representing households and small to midsize businesses.
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Global Presence: Costco's global footprint extends to more than 838 warehouse stores worldwide, with a significant portion—585 warehouses—located in the United States. The company's substantial presence underscores its influence in the retail sector.
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Customer Loyalty and Growth: Numerator's data reveals that approximately one-third of US shoppers are Costco customers. Notably, more than 84% of customers who shopped in 2021 returned to the store in 2022. Costco's customer loyalty is commendable, although it falls slightly behind Walmart's remarkable 97% customer loyalty rate.
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Demographics of Costco Shoppers: Numerator's findings shed light on the demographic profile of a typical Costco shopper in the US. This individual is identified as an Asian American woman aged 35 to 44, married, residing in a city in the Pacific Northwest. The typical Costco customer holds a four-year degree or higher and earns an annual income exceeding $125,000.
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Shopping Behavior: The typical Costco customer engages in regular shopping habits, visiting the store on a weekend day every two weeks or so, amounting to approximately 30 trips per year. During each visit, the average spending is around $100. Interestingly, Costco's inventory is streamlined, with only 4,000 products (SKUs), in stark contrast to the broader selections offered by many other retailers.
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Product Categories and Consumer Preferences: Costco shoppers allocate about 11% of their spending to the wholesale club, mirroring expenditures with Amazon. The top shopping categories for Costco customers include groceries and personal-care items. Additionally, insights into specific product preferences reveal a penchant for Duracell batteries and Adidas apparel.
In conclusion, Costco's success lies in its strategic positioning as a wholesale club, a loyal customer base, and a unique shopping experience characterized by limited SKUs and focused product categories. The company's ability to adapt to consumer preferences and maintain steady growth exemplifies its significance in the competitive retail landscape.
