Costco is turning to technology to improve the customer experience in its stores and online without making major changes to its tried-and-true retail strategy, the company’s chief financial officer said.
While answering analyst questions during Costco’s third-quarter earnings call earlier this year, Costco CFO Gary Millerchip was asked how the company was thinking about being “more aggressive” in evolving its retail business model by adding more technology in stores and options like buy online, pick up in-store.
“We’re working through all of those aspects right now,” Millerchip said. According to TheStreet. “We are expanding our buy online, pick up at warehouse service, however the scope will always be limited based on the amount of inventory we have in our warehouse.”
Millerchip said Costco can’t expand into every category, but it is expanding its selection of TVs and other electronics products currently in stores, which he sees as “a real opportunity for us.”
“Technology is going to be one of our key priorities going forward,” the CFO said. “How can we improve our engagement and relationship with our members, not just through our brick-and-mortar warehouses, but also through other aspects like online, travel, etc.”
Millerchip said Costco is always looking to innovate when it comes to engaging with members.
“We see technology as a great opportunity to strengthen Costco’s relationship with its members and further grow and advance our business,” he said.
Millerchip downplayed expectations of any major changes to the company’s “proven strategy” for big-box retailers.
“We don’t expect any major changes because we already have a proven strategy,” he said, “but we will continue to innovate to meet the needs of our members, just as we have done for the past 41 years.”
Costco’s third-quarter sales came in at $58.52 billion, beating analysts’ average estimate of $58.07 billion and upping its forecast in May, according to LSEG data.
The company also reported earnings of $3.78 per share, beating expectations of $3.70.
Earlier this month, Costco Increase the annual fee Starting September 1, prices will increase by $5 to $10 in the U.S. and Canada, marking the major retailer’s first price hike in seven years.
