Return of the samples... Nothing sweeter than a free Lindt chocolate. While Amazon Prime Day(s) are in full swing, Costco is still winning over hearts and shopping carts with its old-school approach. Online sales make up only 6% of Costco's total, because shoppers dig the in-store "treasure hunt" (come for the TP, leave with a foldable grill). Now, the Disneyland of bulk retail is increasingly appealing to Millennials — especially first-time home buyers:
Signature rosé... for the Millennial mom. Costco has a secret weapon that other food retailers envy: Kirkland. The private-label offers everything from vodka, to eggs, batteries, and toilet paper. Most Kirkland products are made by third parties. Read: shoppers can sneakily get brand names at off-brand prices. Kirkland coffee = Starbucks, Kirkland diapers = Huggies, Kirkland cran juice = Ocean Spray.
Home-lennials could be Costco’s 10-year growth driver... Older Millennials are moving to the 'burbs. Read: first baby, first home, empty cupboards. Read again: prime targets for Costco memberships. More than one-third of Millennials renting city apartments are considering moving away. The median age of a Costco shopper is 43. That's currently Gen X — but in a few years, it'll be Millennial. The suburban migration could have Millennials swapping Amazon carts for Costco ones.