Walking the Box: Costco
Bringing in the New Year
Presented by: Timothy Campbell, Junior Analyst February 2015
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Copyright © 2015 Kantar Retail. All Rights Reserved.
Nashua, NH January 19, 2015
The New Year is In Costco has entered 2015 with its usual pivot towards nutrition, health, and wellness where Kirkland Signature has a strong presence. Furniture is now present in the back of the club. Holiday is Over The bulk of holiday merchandise was removed the day after Christmas with only a few items remaining such as chocolate packs. An expanded wine selection has taken its place. Kirkland Signature Expansion Kirkland Signature continues to make strides across the box as Costco aims for 30% private label penetration. These changes can especially be seen in edible grocery. Heavy Emphasis on Services Costco shows a strong emphasis on services with greater signage on health offerings including immunizations and free hearing tests. Online delivery is heavily advertised both through and third parties like Google Express. Steady Focus on Organic and Sustainability Costco showcases organic across edible grocery and ramps up sustainability and responsible sourcing across other categories.
© Kantar Retail 2015
What We’re Seeing:
Fast seasonal rotation alongside expansion of key initiatives such as organic, private label, and services
Club Visit Details Retailer:
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Center seasonal section partially replaced with fresh wine and alcohol offering
Glenlivet pack on endcap display
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Health, Wellness, and Vitamins Kick Off The New Year
Costco
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Locations and Dates:
Indianapolis, IN December 22, 2014 Indianapolis, IN December 27, 2014 Nashua, NH December 27, 2014 Everett, MA December 30, MA
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Holiday Focused on Toys, Chocolate, and Gift Solutions
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Holiday merchandise located in center ofss merchandising throughout the box Cold weather apparel and accessories complement apparel
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Luxury accessories with accompanying pallet display
Exciting, high quality appliances with relevant demos and advertising
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For further information please refer to Contact: Timothy Campbell Junior Analyst T: +1 617 912 2846
501 Boylston Street, Suite 6101, Boston, MA 02116 (617) 912- 2828 howard.zimmerman@ No part of this material may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photography, recording, or any information storage and retrieval system now known or to be invented, without the express written permission of Kantar Retail. The printing of any copies for back up is also strictly prohibited. Disclaimers The analyses and conclusions presented in this seminar represent the opinions of Kantar Retail. The views expressed do not necessarily reflect the views of the management of the retailer(s) under discussion. This seminar is not endorsed or otherwise supported by the management of any of the companies covered during the course of the workshop or within the following slides.
Emphasis on Kirkland Signature offering Nutritional supplements and vitamins dominate Cart Rail and HBA department
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Furniture Back in Club After the Holidays
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Signage for Services and Initiatives Abounds as Costco Looks for New Ways to Enhance Member Value
Hearing centers and online delivery were key growth areas and moving forward
Timothy.Campbell@
kantarretail
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Dresser, tables, chairs, and sofas available
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Organic Continues to Grow
Crowding out more traditional alternatives
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Extends across edible grocery while sustainability efforts grow in other nonfood categories
Large emphasis on organic and edible grocery
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Driving the Treasure Hunt Experience All Year Round
Fashionable, fun, and feature-filled merchandise
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Fast Seasonal Rotation From Christmas to New Year’s
After the holidays, the vast majority of related merchandise was replaced Several holiday chocolate packs and gift sets remained throughout the box
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Services signage focuses on hearing aid centers, online delivery, Costco Travel, and immunizations
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Private Label Penetration On the Rise in 2015