Costco eCommerce Sales Grow 3x Faster than Total Sales in Q2

Hey CX Revolutionaries!

In a recent revelation by Costco Wholesale 's Chief Financial Officer, Richard Galanti—who announced his retirement on March 15—gold, silver, and appliances were highlighted as the main drivers behind Costco's impressive eCommerce sales growth in Q2. This financial performance showcases not just the diverse appeal of Costco's product range but also the effectiveness of their ecommerce strategy.

A few key insights from the report include the fact that Costco's executive members, who account for just over 46% of total paid memberships, are responsible for a little more than 73% of worldwide sales. Additionally, the efficiency of Costco Logistics shines through, with over 1 million deliveries executed in Q2 alone. Customer engagement is also on the rise, with shopping frequency up by 5.3% globally and 4.3% in the U.S.

As we delve deeper into the fiscal year, which began uniquely between Black Friday and Cyber Monday, Costco Wholesale Corp. has not only reported year-over-year growth in eCommerce sales for its fiscal second quarter and first half ended Feb. 18, 2024, but also significant increases in net sales, net income, and membership revenue during these periods. This performance underscores Costco's strong market position and its ability to adapt and thrive in the ever-evolving retail landscape.

Stay tuned for more insights and updates from the retail sector!

Best,

Ross

P.s. If you enjoy this newsletter and/or my other content, your support as a member would mean the world. Together, let's keep exploring the forefront of customer experience and technology.

Now, let's jump into today's top 3 stories in eCommerce, Financial Services and Tech:

eCommerce ??

?? Next is gearing up to debut both online and in physical stores across India. Following a new franchise agreement with the country's ecommerce leader, Myntra, will oversee the launch of approximately eight to 10 Next-branded stores in key Indian cities such as Bengaluru, Delhi, and Mumbai.

?? Retail robot navigation: A shopper behaviour-centric approach to path planning. This study explores the integration of autonomous mobile robots into the shelf inspection process, leveraging advancements in automation, information, and robotics technology. Performing mapping tasks, these robots incorporate insights into customer behavior by exploiting various sources of behavioral data, including trajectories and product interactions. Motivated by the complex and dynamic nature of modern stores, our research seeks to bridge the gap in retail inventory management.

?? Carpetright calls in advisers to cut costs as demand slows. Flooring retailer Carpetright has reportedly drafted in advisers Teneo to look at multiple cost-saving options, which could lead to potential store closures.

Financial Services ??

?? Belong drops out of stealth. Belong has raised $3.6M in the largest pre-seed round ever raised by female founders in Europe.

?? Klarna ’s Wikipink throws a wrench into the credit card machine. Klarna, the BNPL giant, tossed a grenade into the industry’s usual game of hidden fees and opaque terms with their new initiative: Wikipink.

?? Which large language models are best for banks? As banks experiment with large language models like OpenAI's GPT-4 and Anthropic's Claude, a trend has emerged: In this area as in many others, some are leaning heavily on large cloud providers like Google, Microsoft and Amazon.

Tech ??

?? Why we have co-evolved with technology. When asked to name a world-changing technology, many people might reach for something recent like AI, smartphones or the internet. What comes less readily to mind are the older ones, such as stone tools.

?? China will use AI to disrupt elections in the US, South Korea and India, 微软 warns. The US tech firm said it expected Chinese state-backed cyber groups to target high-profile elections in 2024, with North Korea also involved, according to a report by the company’s threat intelligence team published on Friday.

?? An ingenious technology could change both medicine and agriculture. Protein targets for many common diseases have long remained elusive, purely because they lack a suitable binding site or a strong enough inhibitor. That's now set to change.

Want to connect and chat about how any of this news may inform your tactics and long term strategy?

Shoot me a message on LinkedIn.