Costco Wholesale Corporation's strategic focus on 'big and bulky' items, such as saunas and sofas, has emerged as a significant driver of its e-commerce growth and overall brand evolution. This initiative, highlighted following the Q4 FY2025 earnings, leverages online sales and the company's robust Costco Logistics network.
E-commerce sales neared $20 billion in the most recent fiscal year, increasing over 15%, with a 13% increase in items delivered by Costco Logistics in Q4. This shift allows Costco to offer a wider array of higher-margin products, moving beyond traditional supermarket staples and attracting a more diverse customer base, including younger and more affluent members.
The strategy is designed to expand Costco's market share in categories traditionally dominated by other retailers, while also enhancing the member experience through convenient delivery and installation services. This diversification strengthens Costco's competitive position and provides a clear runway for future growth.
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