topic Re: Is Costco Fading Away? Lifestyle Change? in Community Chat

Is Costco Fading Away? Lifestyle Change?

Noel7 — Tue, 06 Sep 2016 19:23:47 GMT

I just read an article which asks the question and points out that Costco's shares have gone down.

It seems to be another case of changing demographics and lifestyle:

"Why Costco is fading away

A bigger problem is that Costco’s primary market of upper middle-class suburbanites is aging out, and their kids are moving into smaller city dwellings, often without cars."

It goes on to say:

Costco "is suffering from a slow leak caused by a changing economy. Jobs based on economic friction are slowly being replaced by apps and the high-end jobs being found by younger workers are generally in cities or around university campuses. The new careers bring a new lifestyle, with smaller apartments, shorter commutes and a greater premium on space and time."

http://www.msn.com/en-us/money/companies/why-costco-is-fading-away/ar-AAiyVFr?li=BBmkt5R&ocid=sparta...

My guess is that it's also that as their base is aging out, they (we) no longer want to buy in bulk. Along the same thought, I always wondered if they really sold that much of the HUGE furniture they showcase in their stores.

Re: Is Costco Fading Away? Lifestyle Change?

software — Tue, 06 Sep 2016 19:25:19 GMT

The Costco near me is always gangbusters.

Re: Is Costco Fading Away? Lifestyle Change?

mstyrion 1 — Tue, 06 Sep 2016 19:26:19 GMT

No fading out in my area.

Every store is packed. All of the time. Around a holiday, it's impossible to find parking.

Re: Is Costco Fading Away? Lifestyle Change?

Burnsite — Tue, 06 Sep 2016 19:27:39 GMT

When Costco stopped taking AE, they lost me.

I don't have credit cards--just that one charge card. They just aren't worth my acquiring credit card debt. Been there, done that, and will not go back.

Re: Is Costco Fading Away? Lifestyle Change?

chickenbutt — Tue, 06 Sep 2016 19:28:40 GMT

I really hope not. I haven't gone there for a while now, but I order some things there online and my husband goes to the store.

I know, around here anyway, there are a LOT of privately-owned businesses buy a ton of stuff at Costco. They buy everything from food items to paper, soap, cleaning, furniture, etc.

Costco has always been a good business that treats their employees very well so I hope they stay strong.

Re: Is Costco Fading Away? Lifestyle Change?

reiki604 — Tue, 06 Sep 2016 19:29:51 GMT

I am at the local Costco at all hours and on different days trying to find a time when it is less crowded. I think I finally found a time. About 4pm on Monday afternoon. At all other times it is very crowded and hard to find parking.

Re: Is Costco Fading Away? Lifestyle Change?

Noel7 — Tue, 06 Sep 2016 19:31:54 GMT

Costco reps are saying most of their business lately is online, not in their stores.

I notice I'm getting regular emails from them promoting online-only savings.

We now have a new business in the city that delivers your orders to your door in a few hours. From different stores, including Costco.

Re: Is Costco Fading Away? Lifestyle Change?

tansy — Tue, 06 Sep 2016 19:32:12 GMT

There are three Costcos within 10 miles of me -- including the original store. There is a new one going in very close to me. The stores are always busy, but I have read before that the company is trying to appeal to millennials.

Re: Is Costco Fading Away? Lifestyle Change?

Noel7 — Tue, 06 Sep 2016 19:35:54 GMT

I hope it's not fading away but it is true the demographics in this area have changed radically, and it is true that young workers are buying differently and living smaller.

Re: Is Costco Fading Away? Lifestyle Change?

Noel7 — Tue, 06 Sep 2016 19:37:40 GMT

@tansy wrote:
There are three Costcos within 10 miles of me -- including the original store. There is a new one going in very close to me. The stores are always busy, but I have read before that the company is trying to appeal to millennials.

******************************

Hi @tansy

I think that's the real issue. I don't know how they will pull that off, though.

Re: Is Costco Fading Away? Lifestyle Change?

jaxs mom — Tue, 06 Sep 2016 19:44:58 GMT

@Burnsite wrote:
When Costco stopped taking AE, they lost me.

I don't have credit cards--just that one charge card. They just aren't worth my acquiring credit card debt. Been there, done that, and will not go back.

You can pay with a debit card or by check. It's not like you need to use a credit card of any type to shop there.

Re: Is Costco Fading Away? Lifestyle Change?

cancun08 — Tue, 06 Sep 2016 19:45:11 GMT

I was there today around 11am and the place was busy & the checkout lines were super busy. Must've been the shoppers that wanted to avoid the holiday shoppers.

Re: Is Costco Fading Away? Lifestyle Change?

aggravated — Tue, 06 Sep 2016 19:47:42 GMT

We go on Saturday or Sunday. It's a trial to find parking and the store is always jammed. I don''t see any signs of lesser business at the one we visit.

Re: Is Costco Fading Away? Lifestyle Change?

AKgirl2 — Tue, 06 Sep 2016 19:49:51 GMT

We have two in Anchorage, they're always busy especially after work hours, weekends and during the holidays you'd think they were giving stuff away.

Re: Is Costco Fading Away? Lifestyle Change?

ROMARY — Tue, 06 Sep 2016 19:53:32 GMT

Anyone here know if we have to be members to order online? I receive their email newsletters and some items say 'Members only item' (or something similar). Which leads me to believe that non-members can order the other items that aren't marked 'Members only item'. Right? Anyway, if someone here knows for sure, let me know. Also, do they still offer free food samples during lunchtime hours? ........ p.s. The ones I used to frequent weren't in my present area, with plenty of parking spaces. The stores here are extremely crowded (well, the parking lots are). (All day and evening long,) .... No place to park unless it's very early in the morning, just before the store opens.

Re: Is Costco Fading Away? Lifestyle Change?

chickenbutt — Tue, 06 Sep 2016 19:53:37 GMT

Hi Romary! I'm pretty sure you do have to be a member. I have to log in with my member number if I want to order.

Re: Is Costco Fading Away? Lifestyle Change?

chrystaltree — Tue, 06 Sep 2016 19:58:40 GMT

The Costcos nearest to me are always full and so busy that I don't even try going in. They never have an empty parking lot. People haven't stopped having children and the economy where I live is bustling and growing so I don't agree with the article at. I think Costco serves people with famliies who like to stock up on the things they use all the time. That hasn't changed. But I do think that shoppers are wiser now, while they do buy in bulk, they do it for convenience. They know they aren't saving money when they buy that box of 100 rolls of paper towels.

Re: Is Costco Fading Away? Lifestyle Change?

JeanLouiseFinch — Tue, 06 Sep 2016 20:02:52 GMT

@ROMARY wrote:
Anyone here know if we have to be members to order online? I receive their email newsletters and some items say 'Members only item' (or something similar). Which leads me to believe that non-members can order the other items that aren't marked 'Members only item'. Right? Anyway, if someone here knows for sure, let me know. Also, do they still offer free food samples during lunchtime hours? ........ p.s. The ones I used to frequent weren't in my present area, with plenty of parking spaces. The stores here are extremely crowded (well, the parking lots are). (All day and evening long,) .... No place to park unless it's very early in the morning, just before the store opens.

@ROMARY - I honestly always wondered what that (Member Only Price) meant. To me, all the prices are member only prices. Like @chickenbutt said, ordering online requires the user to enter their member number. To tell you the truth, as a member who pays an annual fee to be able to shop at Costco and Costco online, I'd be pretty honked if a non-member would have access to the same items as me. I know non-members can get prescriptions filled (don't really understand how or why), but that's the limit.

Re: Is Costco Fading Away? Lifestyle Change?

novamc1 — Tue, 06 Sep 2016 20:06:56 GMT

I, too, regret the loss of the Costco American Express credit card. We've had a couple bouts of confusion with the new Citi card..........such as my husband receiving his new card with a photo of ME on the back. In order to straighten that out, he has to have his photo retaken at Costco and wait for a new card to be printed and sent by Citi.

As for losing a demographic base, it seems to me Costco could start selling some items in smaller, more manageable quantities and attract more customers, if it is concerned about declining membership and sales.

. Of course, the company would claim that it couldn't provide prices quite as low as they are now, but many people just don't need multiple jars, bottles and boxes of many items.

I also belong to BJ's warehouse, and some of the reasons I do are that many items come in smaller quantities than Costco offers, and .you can use manufacturer's coupons to get a better deal.

Re: Is Costco Fading Away? Lifestyle Change?

Hooty — Tue, 06 Sep 2016 20:03:03 GMT

My DH drove all the out there yesterday, to find out they weren't opened, so many places were opened yesterday, so we thought they were too, LOL! I cancelled my membership to Sam's, so I hope Costco is here to stay, their stores are always so clean and employees very nice!