Costco.com boosts sales after expanding number of SKUs
Costco.com, the online retailing arm of Costco Wholesale Club, expects its fiscal year 2004 web sales to exceed $350 million, up 55% from $226 million a year earlier, for a very simple reason: Costco is giving customers exactly what they want and in greater categories and easier ways to shop.
A case a point is Costco’s new online tire store, which the shopping club is expanding. Compared to a typical Costco bricks-and-mortar location which carries only 70 tire-related SKUs, Costco is updating its online store to carry more than 900.
Customers can shop new tire brands from Michelin and Bridgestone, use the convenience of the web to initiate and complete the transaction, then schedule an installation appointment at a nearby Costco location, says Susan Castillo, vice president of electronic commerce for Costco. "The tire store is typical of how we are refining our merchandising strategy to reflect what club members want," she says. Costco.com carries about 4,000 total SKUs.
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