Costco Wholesale Corporation (NASDAQ:COST) has by and large been able to avoid the troubles that have plagued its competitors and other retailers, with many falling into bankruptcy. While other companies in the industry are struggling to keep their heads above water, Costco simply shrugs its shoulders as it raises membership prices and simply collects more money from customers that seem more than willing to pay whatever the wholesaler wants.
Costco has some unyielding power over consumers and that makes it a great investment and a standout in its industry. While Costco calls itself a wholesaler, it is effectively competing with retail companies for consumer purchases and is very much in the retail industry.
Earlier this month, Costco announced the launch of its CostcoGrocery service where customers will be able to have dry grocery items delivered to their homes. For customers frustrated by Costco’s busy warehouses and long lineups, it could provide a way for Costco to further grow its sales and reach customers that otherwise might not visit its stores.
Costco would certainly prefer its customers to be inside its stores since many times consumers leave with much more than they intended to buy. However, there is likely no shortage of customers who also don’t go often because the often-crowded warehouses make the shopping trip more onerous and time consuming than it might otherwise be at other retailers that have more locations.
As well as Costco has done in-store, online and delivery services could provide a lot of future growth for the company.
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