This low-cost carriers Costco way by many people at home. A security researcher Laura Richardson said: “He on his staff commitment to provide value for members to give a great deal of respect for people who want to improve at Costco the price of a single piece, to stop living by Jim Sinegal, said We can use it to make money, but for me, to provide value for customers to make more money than the much more important rganization everyone seems to know his strategy, he managed to spread it in the organization. “
2003: Costco sales of $ 41.7 billion, has 407 warehouse stores, 103,000 employees, 20 million faithful members and 40 million card customers. Costco to become America sixth largest retailer, the world ninth Fortune 500 ranking of No. 33.
Member, due to the different contributions of different members of the treatment is not enjoyed the same. For example, an executive member of enjoyment from the car, home insurance, mortgage services, real estate services, long distance telephone service, billing and forms printing, credit processing, health insurance and many other key services. This discriminatory technology, Costco members can make their contributions are paid by such a great feeling. In fact most will feel very satisfied.
1986: Price Club stores are 10 years old, Forbes magazine and was awarded the “best-managed company.” Company with 22 branches, 32 million members and 7294 employees. Costco has a three-year history, and has 17 branches, 130 members and 3740 employees.
1999: Costco in Hisayama in Japan opened its first warehouse store. Costco co-branded American Express card into. The average sales per store of $ 100 million. On August 30 the company changed its name to Costco warehouse company (Costco Wholesale Corporation).
a limited number of commodities and low-cost carriers, more than making good profits in the case of low financial returns are still well over the years have maintained the growth rate of around 10%.
Costco also paid great attention to low-level members into high-level members. Costco to attract new members and old members and a method is trial. For some customers on some new services to try to make their own decision on whether to buy them and join. However, Costco has never wanted to make money from these businesses, what they think is just to make contributions, so Costco is also in carefully selected partners, to achieve best value for members.
This staggered position with the head on Sam Club stores (located in the general public consumption), but also reduces the Costco and other discount stores, grocery stores and convenience store competition, which makes a good thing 20 more years did not experience too intense competition to maintain high profitability. On the other hand is great because of the high-income groups spending power and less affected by the characteristics of economic fluctuations, Costco same-store sales multiple to 6% has been maintained rapid growth, and this data is far higher located in the popular group of Sam Club stores. Well positioned to bring this is a fixed number of members is not too much, so Costco can concentrate on more targeted services for these people to do, provide customer purchase value.
1993: Costco in September to celebrate its 10th anniversary. Shareholders agreed to price shop and Costco Member merger. Price Costco (Price Costco) was established in Thurrock in the UK opened its first store.
link: “good number” of two decades
1979: After the initial loss of $ 750,000 a year, the price of the club with two stores, 900 employees, 200,000 homes members and $ 1 million profit.
by finance, real estate and other members of the introduction of services to the Costco project to greatly improve member satisfaction, and this is one thing more important innovations.
until 2003, Costco investment objective is mainly to develop new markets in 2001 and 2002, opened 61 stores, 72% open at Costco does not open up over the market. But Costco is found in those who occupy the market is far from saturation, in order to consolidate the market has opened in 2003, Costco investment has been more focused on the open market, to consolidate what has been achieved, to prevent the intrusion of the opponent. In 2003, opened 25 new stores, 68% (15 stores) have opened up in the open market. This approach ensures Costco financial position has been very good. Costco said that the market has opened up shop in the practice of filling a strategy that allows for the development of the logistics market is more rational, less through some old improved to achieve higher customer satisfaction and higher return on investment. Such as in the United States in 2003 Costco opened 19 new stores, 13 has opened the market, the fact that these stores did not affect the old business, both to maintain double-digit growth. This filling strategy in the near future will become the focus of Costco expansion.
in Costco product strategy, its own Kirkland Signature brand plays an important role. Through years of efforts, Kirkland Signature has been built into a high-quality products brand in Costco stores everywhere, and Costco members have a good reputation. Costco Rose, a senior director, said: “We want customers to see into the Costco Kirkland Signature brand of any goods, from food to clothes to hardware, etc., so they can see the Kirkland Signature brand in this trusted and This trust will pass to the other commodities go up. “Therefore, in each store, Kirkland Signature by the high quality of image and trust of its customers, Costco successfully passed its high-quality image to the store every customer .
1994: Seoul, South Korea opened its first store in Asia.
“international, we try to start from the bottom”, Sinegal explained. “If we wish, we can enter 50 different countries, but we can not put our management behind. At the moment, we believe that there are many suitable opportunities, but we in the international process is thought to go slowly in In other countries it is very difficult to do business in the development of the Canadian market when it took us a long time and we had to develop procurement and management team. Initially, we sent a small part of the backbone of the United States, we plan to gradually replace the Canadians, basically, we do so in that country we have developed an excellent management team, which took time, but now for us, it has been a very profitable. “Costco can be more more emphasis on doing the work of the local work market, gradual internationalization. And when the great emphasis on international localization. This is a good thing more than an overseas branch of each double-digit growth every year an important reason.
U.S. Costco (Costco) success 2007-01-18 17:21 http://www.costco.com
other Costco management style is very flexible, very careful to respect the staff, it is attention to employee empowerment. “I will Sinegal flexible management style is defined as” a good number of senior managers said, “He allows people to grow and we have many very good people, they need very little instruction, they are the company assets. They have also been treated well and we need them for life. a professional analyst praised in the retail, Costco is probably the most decentralized and most consistent management.
1995: Section 200 Costco opened stores in Oregon. Costco unique individual identity was introduced.
the other hand is a good thing more and more use of direct mail, through their own membership lists can be more targeted to the product catalog and service information sent to members, this approach has achieved good results.
Of course, Costco secret of success is far more than these points, such as their chairman Jeff Brotman and Jim Sinegal, president and CEO of outstanding talent but also the success of a very important part and we believe that tomorrow will be better than a good thing and finally to President and CEO Jim Sinegal, then at the end of it.
5, to develop a loyal member
but Costco to such low-profit enterprises to win, the expansion is necessary in the expansion of chains, many companies are the enclosure movement, rapid growth in size, or to diversify into other areas, but the good thing President and CEO has more than that in the United States, membership warehouse retail market accounts for only a small retail space, about 4%, but Costco has done enough. Costco goal is to account for The small market of 70%.
1989: Costco this year with 46 stores. Price Club stores in the third profitable company in the United States.
So Costco is how to obtain such a brilliant the results of it? it is the secret of what?
2002: Costco into Kansas and Indiana, bringing the number to reach it in 36 states. Costco in this financial year, worldwide the members of 40.5 million, up 98,000 employees. Costco hot dog and soda prices are still $ 1.50.
U.S. average household income is almost $ 38,000 but more than good business their average annual income of $ 57,000, 90% of all the members have in their homes, as opposed to the national average of 69% residential, according to AC Nielsen survey in the United States, all retail channels , membership warehouse stores to attract the largest number of affluent consumers, who account for 54% of affluent shoppers. For these wealthy persons, Costco has become their best place to shop. This is true, the average Costco member Shopping at Costco each year 11.4 times the average cost of $ 94 per person, while targeted at the mass consumer groups, members of Sam Club is only 8.5 times per year, the average cost of $ 78.
innovation is a must mention 1998 In Costco opened its online shopping site costco.com, and achieved profitability in 2002, 2,200 kinds of products available online, but only only 15% of Costco traditional store sale. shopping site to open even more enhanced by a good number of the image of innovation, opening up new channels, but also to attract more consumers to go to the Costco warehouse store, can serve three purposes.
seven solid expansion
Costco also attaches great importance to the use of high-tech, but the principle is easy enough. In order to save money and ensure the best computers, additional configuration on the computer are all removed in 2003, Costco implemented called “fast receiver” smart warehouse system , the system greatly improves Costco dry goods receiving and storage speed, saving a lot of labor, improve efficiency and cost savings.
1985: good than December 5 publicly traded. Costco first hot dog cart (cart) opened. a hot dog and a soda from a price of $ 1.50. the first Costco warehouse stores in Canada Burnaby (Burnaby, British Columbia) opened.
one, located in the higher income consumer groups
1982: Jeff Brotman and Jim Sinegal to meet and develop the establishment of a new system of membership warehouse club business plan.
allows customers a fifth is a fifth province, is the province of a hair a hair of the principles and theories is a good thing and more power to run. Sinegal more than 200 days a year in travel time, and strive to inspect each of the two supermarket chains, in order to strengthen these principles and theories, he always stressed that “you are the customer the client. You must pay in order to get it. When you buy one thing at a low price, we will build out of the province money back customers. “So Costco membership dues in the profits of an important role in taking the whole year Association fee only to 2% of total sales, but accounted for 54% of the total profits of so great importance to develop a loyal Costco members, so they can keep a stable number of members.
Costco secret of success in products but also to create interactive products that can sense, because people need to interact with the product, people want to touch the merchandise at Costco goods are interaction, if it can not interact will be cleared out so many good people mental grasp, so in the Costco shopping is an experience, rather than a task when you go out to see a special show , the last time the piano is $ 13,999, the last time a car, the next time do not know what is in the top shelf, you may find a video of medical care, if the placing of goods is not tight then there sequence, you can find a miracle every few rows, which provide customers with unexpected joy, a lot of good customers is to find more than this stimulus, and a lot of time is not found anywhere else.
“Even great companies such as Boeing have ups and downs, a good company to reinvent itself and continue to grow. We hope Costco qualified for this task. “
Six innovative
Conclusion
Costco Jim Sinegal, president and CEO, said:” Our members are not unusual in our procurement of raw materials here, they come to us to buy value – not a low cost. “So many good things have been moving in twenty years to provide customers with excellent value services to buy. Manifested in good number of operations is, to the best products to bring customers the lowest price, which is Costco corporate mission .
in commodities, Costco in order to provide the highest quality national brands and regional brands, 100% satisfaction guarantee and lower than traditional wholesale or retail channels, the price is known.
2000: good more and opened two stores in Texas.
beginning, many brands are not willing to Costco to get their products to sell, because they are worried about the price of Costco members will provoke other channels, such as store the other hand, that discount will damage their brand image, but the warehouse stores as more and more people, many brands have voluntarily entered a Costco, such as Titleist, Cuisinart and Levis and other brands, but there are many beginning, not Costco co-producer, will be purchased by way of transfer of those Costco to get a good product to sell. It is said that Costco has not been authorized by such products accounted for 4% of the total. However, Costco said: “As long as our customers want, we will find ways to help them get it. “
1998: a good thing in Detroit opened the same day more than five stores. Costco set up his own website Costco.com.
First thing they do is to reduce the inventory unit. A Costco warehouse store about 3800-4000 stock units, and a typical supermarket has 30,000, a discount department store has 40,000 to 60,000, a 20 000 super centers because of Costco stock unit less, the customer can be in each unit spend a long time to find a more valuable commodity. less units means less inventory and fewer varieties of goods repeat so the shelf space with high efficiency, faster turnaround, lower inventory carrying costs, while reducing the selection, simplifying the purchase. good number of inventory turns 15 times a year, much higher than the opponent on the other hand is a big package, large packing unit into service to reduce costs, save labor and management costs.
1987 : Costco opened its first manufacturing and baking sectors. Price Costco membership and they have opened the first optical laboratory.
1980: Price Club stores (Price Club) publicly traded.
In fact anywhere in the world are the same, the people who own their own industry, economic conditions often are better so people are often spending less affected by economic fluctuations, in the form of better economic circumstances more is willing to spend when the rapid economic development, high-income people will be more and more, while most of Costco business members are people who have their own industry. That is why, despite the good members of the total number of commercial membership of 1 / 3, but accounted for 60% of its sales, and these wealthy business members for their business and their own purchase of high quality products.
four, loyal team
” This is our company culture is the same. For us, the mouth is the most important forms of marketing. We rely on it. Relative to our area and media companies in the field of evaluation of financial success, why do not we rely on word of mouth it? “Through the faithful members of mouth effect, although not advertised Costco also made very good results.
Of course Costco is far more than these results. Costco membership warehouse store has been in keeping with the boss position, although only the largest of its number of stores Wal-Mart, Sam Club competitor (2003 538) 75%, but turnover is far ahead of Sam Club (2003 317 million), not to mention the third-ranked BJ Club the (150 in 2003, 67.2 billion dollars) in 2003 Costco same-store sales average $ 105 million (U.S. stores averaged $ 112 million), which a number of Wal-Mart Sam Club store nearly twice ($ 058.9 million), BJ Club stores more than twice (0.45 billion U.S. dollars). More importantly, Costco same-store sales, the average growth rate is 6%, while Sam Club is 2.2%, BJ Club stores was 2.1%. It is precisely these reasons, the Costco in the U.S. Wal-Mart has always been considered the only fear of the company in 2003, Costco became the sixth U.S. large retailers, ninth in the world, Fortune 500 ranking of No. 33 and has been Fortune magazine as America Most Admired Companies. Costco in the U.S. in 2003 among the best in customer satisfaction index of evaluation, in addition to many U.S. businessman to obtain discounts (DM) of the Year Award.
1983: the first Costco warehouse store opened in Seattle in September this year end, Portland, Oregon and Washington, the other two stores opened in Spokane .
Other savings come from lower advertising budget and streamlining the department, such as Costco is no public relations staff. “We feel like other people say you own your own good that much more important,” Sinegal said. ” This is our usual practice. We do not advertise. We say in our own words are very low-key. Our annual report does not have any photos. Our press release is often just a piece of paper written on the facts. We would like to make it simpler. “
Costco success with a good team of employees are inseparable, but Costco because Costco employees from the retail industry has been highly praised. Sinegal this is quite proud of. Sinegal said, “Loyalty is based on many things. I think they should get them all proud. They are expected to operate the business. We do not pay outrageous salaries. They have stock options. Do not get me wrong. It was not without paying a high salary as an excuse. In the business has a joy and fun. I think that why. “
In terms of price, Costco has been advocating for consumers than any other people have low prices at Costco food store can be purchased for $ 1.5 a hot dog soda. Costco Richard Galanti, chief financial officer personally think it should be suitable for sale $ 1.75; but President and CEO Jim Sinegal, but countered that he was willing to lower costs, more drinks, the price set at $ 1.25, and change the package name, and that would be more appropriate, but insisted that the price Costco for twenty years, and will continue to do so.
1992: Price Club store opened its first store in Mexico City. Costco in Miami opened its first warehouse 100.
more established in good time, when the view is only lower it to buy discounted goods community, so Costco mission is to form a thin low-cost sales of high-end goods sub-market, to change the traditional view. Costco will own customers located in the mature concept of consumption of urban residents. Costco Chairman Jeff Brotman that the community is to attract the most affluent small businessman, they are willing not only in business spend money on, as long as quality assurance, good price, are willing to spend money on their own can be said that Costco from the day will set up their own positioning to attract higher-income consumer groups.
price is a good thing more consistent business philosophy at Costco, gross profit in the range between 1% -14%, the entire chain of warehouse stores, the average gross profit is only about 9%. “Only Sinegal and Dick DiCerchio (executive vice president, director of commodities, sub- sales and marketing) to break the 14% limit, but as Jim said repeatedly, his never formally approved the advent of “Richard A. Galanti, chief financial officer says.
Costco also attaches great importance to the trust of its customers, when Procter

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