Feasibility of Non Bulk Items at Costco – Part 1
Costco is the greatest wholesale mega store in today’s market opening its first store in 1983 in Seattle, Washington. Its mission statement is "Costco 's mission is to continually provide our members with quality goods and services at the lowest possible prices. In order to achieve our mission we will conduct our business with the following Code of Ethics in mind: Obey the law, Take care of our members, Take care of our employees, and Respect our vendors. If we do these four things throughout our organization, then we will realize our ultimate goal, which is to reward our shareholders."
Today Costco has 622 stores worldwide with stores in Europe, Australia, Canada, Mexico, Taiwan, Japan, South Korea, and of course the United States. Costco’s trademark brand of sales of its product is in bulk. So it has only one or two choices of each item in each category because research has shown too many items in each category can confuse customers and they may not make a purchase. Feedback from customers has shown their chief complaint is not being able to buy more items individually.
The problem facing Costco these days is complaints by customers that they want some items sold individually because some customers don’t want to buy four bottles of ketchup at once. The research questions for Costco are will it provide items individually to customers, Is it profitable for Costco to sell some items individually, and how much business will not providing items individually to customers affect Costco’s revenues. This research is critical to Costco’s future and how it will change in the future to increase profits and maintain its current customers and also gain more customers that don’t shop at Costco because they are seeking a store that meets their needs of buying items individually.
Hypotheses An opportunity for Costco to continue to buy in bulk, but sell
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