The market’s ever-changing scenarios have taken effect Costco – one of the retail giants in the market. The millennial generation is proving to be a harder target market for this giant and it is affecting their earnings. In addition, Costco’s stock price has been going down.
In the past recent years, Costco’s success was enviable. The customers are all praises when it comes to the Costco shopping experience. Raving reviews about the retail giant are splashed on magazines. There are even TV documentaries about the success of Costco in the retail market.
Sad to say, all of it is currently changing. Gone are those days when Costco has the top spot. The millennial generation proves to be a harder market to capture. The newer generation loves to live in the city and do not have any penchant in owning a home in the suburbs. The millennial – as what they are called – prefers to take the subways or hail a taxi rather than own a car. How do all of these affect Costco? When visiting Costco, one needs a car to haul all the groceries bought in one shopping trip. Another factor seen is that most Costco stores are located in Suburban areas. Thus, the millennial generation does not fit in the customer category that would likely take interest in shopping at Costco.
So far, Costco is not swayed by the downward change in the company’s status. Costco CFO Richard Galanti mentioned that they are looking into utilizing newer marketing methods to attract the millennial generation. Going into social media is one of their tactics. Costco might be unsure of what it is doing as of the moment but it will not waver to fight its way back to the top. Learning the newer market and lowering the age for its target is crucial for any business.