Costco is known for its cautious approach to adopting new technology, allowing competitors to innovate first. This strategy helps the company avoid investing in unproven ventures. By the time Costco implements a new technology, its value is already established. This explains why the company was slow to offer direct online sales and has yet to incorporate robots in its warehouses. If a technology isn’t mainstream, it’s unlikely Costco will use it.
Despite this conservative approach, Costco does innovate, especially when it benefits members. Recently, Costco introduced a warehouse tool in its app, allowing members to check local item availability and prices, which saw over 43 million visits. Although progress has been made, the company acknowledges there’s more to do to enhance the customer experience.
Costco has also added Affirm as a new payment option, allowing members to split large purchases into smaller, manageable payments. This pay-over-time option is already familiar to many due to its adoption by other retailers.
Additionally, Costco has expanded its curated marketplace, Costco Next, and increased the reward on gas purchases to 5 percent. These changes have contributed to strong sales growth, with February net sales reaching $19.81 billion, an 8.8% increase from the previous year. While U.S. and Canadian sales were strong, international sales showed mixed results. Overall, the company continues to perform well, supported by strategic changes that enhance member value.
