Costco Macro Environment

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Research shows, that Costco’s way of doing research is a unique way, indeed it uses its membership concept to gather statistics on its customers that in turn did not involve extensive research. They are put into groups business owners and licensed professionals, depending on the job role, for instance, business owners and licensed professionals which are in one group and this allows them to minimize the risk involved with accepting cheques and makes it possible to understand the customers. Price Club (1990) states “Instead of communicating with the whole world, you communicate one-on-one with the people you want to reach”. According to this information obtained from the membership it can be suggested that Costco can pre-select the demographics of their customer base. According to Comparative demographics (2008).Comparative demographics in US market shows, that 85% of heavy wholesale club shoppers are from the upper income groups and in regards to the household size, 72% of heavy wholesale club shoppers are from two to four person households. In terms of age 73% of female heavy wholesale club shoppers are no more than 55 years old as stated by Comparative demographics. 38 year old males, compared to females, were more likely to search for brands and products in Electronics, Department Stores, Music.

Macro environment for Costco - Economic
According to “Coriolis Research” graph, Costco’s main source of capital has been through its membership fees which have been consistently growing since 1989 in comparison to its net income. However, according to Costco OPBT it fluctuated in the year of 2000, Costco’s net income was up by approximately $75 million as stated.

(Posted by analyst Marce Edwards) In 2008 Costco benefited from the slowing economy. Moreover, wholesale chain said that its April sales in 2008 at stores which were open at least a year, have risen by more than 8%. It has been investigated that the high fuel costs...
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