Jingle Bells… Costco Sells….and Sells…and Sells….

 

The other day, I received my copy of Costco Connection, the monthly print publication of the giant big box retailer of which our family has been a member for nearly 20 years.

At Chez Carlino, the holidays represent our largest (i.e., read: most expensive) visit to the venue as we stock up for the traditional Christmas bacchanal, which in scope, would most likely even prompt the entire offensive line of the New York Giants to scramble for the antacid after dessert. For this visit we take the SUV and put down the back seats to accommodate the haul.

From paper goods to flat screen TVs to a grocery and meat department big enough to amply service a cruise ship, the 800-unit international brand unlike competitors like Wal-Mart, does no advertising behind its regular coupon mailings, among other interesting facets of its operation.

I recently came across an article that detailed some of Costco’s more unique features, notwithstanding the fact it sells more than 1 billion rolls of toilet paper a year and generates in excess of $160 billion in revenue.

Its global popularity reaches markets far beyond New York or California. When it cut the ribbon on its first unit in China it had to shut down temporarily because nearly 10,000 shoppers tried to sardine their way in on opening day.

For example, I always wondered why its rotisserie chicken, pizza and hot dogs were priced so cheaply. Normally I pay $10-$11 for a rotisserie chicken, as opposed to the eyebrow raising $5 price tag at Costco. Ditto for the $2 pizza slices and $1.50 hot dogs. I had always assumed that was due to sheer sales volume and economies of scale.

Nope.

The company considers those “loss leaders” in the hopes that consumers will select one of the more expensive items among its 4,000-unit inventory. Perhaps something on the order of the $492,000 Tiffany bracelet or one of the 520,000 cars it sold in 2019.

It also takes care of its employees and has a remarkable retention rate for the retail industry. Its hourly wage hovers at nearly $22 an hour and 88 percent of its workers are enrolled in its health plan. It also offers them financial counseling services.

Its above-mentioned monthly magazine has one of the largest print circulations in the country with a base of 14.3 million.

As my working career begins drawing to a close and I begin mulling a part-time second career I sometimes wonder how I would look in that red apron. Better yet, I will find out if they hire front entrance greeters.

I think I could greet from experience with the best of them.