How Costco Aims to Lure Younger Shoppers

by Christopher Freeburn | March 11, 2014 12:34 pm

How Costco Aims to Lure Younger Shoppers

Warehouse retailer Costco (COST[1]) is looking to boost its appeal to millennials[2].

coscto store sign 630 flickr 300x225 How Costco Aims to Lure Younger Shoppers[3]
Source: Flickr[4]

Among the tactics Costco hopes will draw a more youthful demographic are expanding its e-commerce footprint and stocking a greater range of organic products, the Seattle Times notes.

Costco traditionally draws more-financial established, suburban shoppers who have room to store products purchased in bulk. Younger consumers — often apartment dwellers — tend to have less space and thus frequent warehouse stores like Costco less than older shoppers.

Offering products like organic kale is one way Costco hopes to entice younger consumers into its stores. Costco has also experimenting same-day-deliveries in San Francisco under  trial partnership with Google (GOOG[5]). The company is also looking increase its online sales infrastructure.

Earlier this month, Costco reported second-fiscal-quarter earnings and revenue[6] that missed Wall Street forecasts.

Costco stock slipped slighting in Tuesday trading. COST stock has gained more than 10% over the past year.

Endnotes:
  1. COST: http://studio-5.financialcontent.com/investplace/quote?Symbol=COST
  2. looking to boost its appeal to millennials: http://seattletimes.com/html/businesstechnology/2023067121_costcoearningsxml.html
  3. [Image]: http://investorplace.com/wp-content/uploads/2011/07/coscto_store_sign_630_flickr.jpg
  4. Flickr: http://www.flickr.com/photos/greenwenvy/
  5. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  6. second-fiscal-quarter earnings and revenue: http://investorplace.com/2014/03/cost-stock-costco-earnings/#.Ux83ctxhOf0

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