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    Costco Plans To Focus On The Development Of Online Apparel Business.

    2016/12/31 15:58:00 114

    ShoppingWAL-MARTCostco

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    In the booming era, Costco, the largest member supermarket in the US, seems a bit out of date.

    BusinessInsider, a technology news platform, points out that the joy of picking up cheap products is being replaced by the convenience of the electricity providers step by step.

    Wal-Mart

    And traditional retailers such as Taghit invest heavily in online shopping.

    Costco

    But they are slow to make progress, unwilling to set up online businesses, partly because of their business models.

    "The pleasure of membership supermarket is to find new things - new products that didn't last month or even last week - just like treasure hunting.

    Recently, FrankRiso, an expert in retail automation, talked about Costco in an interview with Forbes.

    According to the world clothing shoes and hats net, the pleasure of treasure hunting is not something everyone can understand.

    In 2016, online sales were one of the fastest growing branches of the retail industry, and consumers began to give up real store shopping.

    BusinessInsider's research service provider BIIntelligence pointed out that online e-commerce sales are expected to reach US $385 billion in 2016 and $632 billion in 2020.

    In the first half of 2016, the average growth rate of retail sales in the US was only 2%, while online sales reached 16%.

    Basically, if retailers want to grow in sales, they must do something in the field of electricity providers, which is what Costco lacks most.

    Costco himself realized that he needed to rush to catch up.

    "Maybe we should decide earlier to do something."

    In early December, during the call to analysts, Costco CEO RichardGalanti said.

    The company's current focus is to increase the number of online store products, simplify the checkout process and speed up logistics and pportation.

    Galanti announced in the earnings call conference that Costco plans to focus on the development of online apparel business.

    Now, Costco's online sales are indeed growing, and the last quarter has increased by 8% compared with the same quarter last year.

    However, Costco still has a long way to go.

    They said they would not provide online single line pick-up service, while other competitors, such as Kroger and WAL-MART, are exploring such services vigorously.

    Costco is not prepared to compete with Amazon or WAL-MART in terms of product quantity or type.

    "For Amazon and other companies, they are trying a lot of things," Galanti said.

    "Some attempts are effective, but others are of no use.

    We know what kind of attempt is useful for Costco.

    What Costco is trying to solve is mobile terminal sales.

    Galanti said that mobile terminal sales have great potential, but the company's mobile end sales ratio is currently below the industry average.

    In general, the online sale of this, compared with WAL-MART, Taghit, Kroger and other competitors, Costco is not worried.

    Galanti said in its September earnings call conference: "convenience has not always been our advantage.

    Our success is based on cheap, good, small profits and quick turnover.

    You will see some changes, most of which are offensive rather than defensive.

    But our core business is still attracting consumers to shop, which is the top priority of our work.

    As a comparison, in October this year, WAL-MART CEO DougMcMillon said, "the future (WAL-MART) will gradually shift to the electricity supplier."

    Recently, WAL-MART has made some important investments in e-commerce. They bought Jet.com, an online retailer, and developed a new software called Electrode, which has increased the loading speed of the official web page by 33%.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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