Costco and Walmart Two Major Retail Stores
17 December 2015
Costco a multibillion dollar global retail warehouse with more than over 81 million members around the world generating more than $ 124.3 Billion dollars in total revenues around the world. The company’s first location opened in 1976 under the name of Price Club first opened in a converted airplane hangar in San Diego, CA. The main founders of the mega billion dollar retail warehouse was started by Jim Sinegal a former Price Club executive and Jeffrey Brotman an american lawyer who came up with the fundamental ideas to start a retail market with the compensation of discounts supermarkets and department stores. In 1983, the first Costco opened its doors in Seattle, WA being the first company to begin from zero to generating $ 3 billion in just than six years surpassing Wal-Mart and other major retail stores1. Costco has expanded it retail stores to over eight countries and having almost 600 warehouses internationally.
Costco is leading world retail store that holds only hold 4,000 of supplies compared to 30,000 supplies that can be found in other supermarkets2. Through having a minimum level of supplies Costco members can carefully choose products based on its quality, price, brand, and features that it offers in a best value to its members3. Costco’s marketing strategy called the Leadership strategy, in which companies try to have the lowest price as possible some of features that it offers in a best value to its members. Costco’s marketing strategy called the Leadership strategy, in which companies try to have the lowest price as possible some of Costco’s competitors also uses this strategy to gain more customers and also to increase it profit. Strategies which other retail supermarkets don’t offer memberships ranging from 55 to 110 dollars for a one year membership, Low prices, High wages, Few SKU’s, advertisement4. People who wish to...