Robert Fakinos’ Post

Good article to review!

The National Retail Federation’s Hot 25 Retailers list for 2024 highlights the fastest-growing U.S. retailers, including unique stores like Daiso USA and Five Below, strong grocers like ALDI USA and H-E-B, and standout online and international brands. It reflects a diverse, post-pandemic retail landscape. For those interested in consumer trends or smart investments, this list offers key insights into the retailers driving growth and capturing attention. Check it out here: https://bit.ly/3z8Y9n7.

It seems surprising that Costco – normally known for its low-cost offering – would add gold to its product mix, but the decision could provide longstanding value. We asked Senior Consultant, Addie Robertson, to share her thoughts on Costco’s latest move:   “While this move has a relatively small impact on Costco’s bottom line in terms of gold sales only, it provides some valuable strategic benefits: 1. Attracting new customers and 2. Growing the eCommerce channel.   Since Costco is a membership-based model, there’s a high chance that at least some net-new users will sign up to purchase gold and will then continue to shop at the retailer. Additionally, gold is only available online, which means it’s driving traffic to the eCommerce channel, which is growing at 20% YOY. Web-only products at Costco are typically higher priced items such as jewelry, televisions, and furniture, so there is potential to capture even more incremental value by prompting members to shop online. While the trend of buying gold may come and go, the benefits of bringing in new customers and growing a high-margin channel have a longer-term make this a smart strategic move on Costco’s part.” #Strategy #Retail

Our MODL functionality gives the ability to measure granular physical and financial KPIs for in-depth industry analysis. For the retail industry, this means same store sales and the size of the footprint for major retailers. Costco Wholesale continues to expand its footprint, consistently opening more stores throughout the years. Growth in number of locations is one key indicator of business expansion. This will give Costco continued opportunities for revenue growth through physical expansion. Consensus of same store sales is expected to exceed 4.5% in 2024 Q2 and remains above 4% through the year. With a steady trend that remains high among peers, the street expects Costco’s same store sales to outpace big-box stores like Walmart and Target through at least the end of the year, and into 2025. #retail #BloombergTerminal

Ever wondered why Costco Wholesale is such a monster? Hint: It's all about their Membership Fees! 💸 💸 Costco's unique business model, centered around membership fees rather than relying solely on product sales, gives it a significant pricing edge over traditional retailers like Walmart and Target. To bolster that point, purchasing a Gold Membership for $60 or an Executive Membership for $120 directs those funds directly to the retailer's profits. Costco's goal isn't solely to boost sales within the warehouse clubs but rather to encourage membership renewal upon expiration. While these competitors need customers to make purchases in order to generate revenue, Costco benefits from membership fees going directly to its bottom line, regardless of whether members shop in-store. One key advantage of Costco's membership-based model is that it can afford to mark up products less than its rivals. This is because Costco saves money through various strategies, such as stocking a limited supply of items, leveraging its buying power to negotiate lower prices with vendors, and offering its own Kirkland Signature brand, which allows for further cost savings. Additionally, Costco maintains lower profit margins compared to traditional retailers, which translates to lower prices for its members. While Walmart typically operates with gross profit margins between 23.1% and 24.9%, Costco's gross margin hovers around 12% to 13%. This means that Costco's members are paying less for the goods they purchase compared to customers at other retailers. Overall, Costco's ability to offer high-quality products at competitive prices, coupled with its membership-based revenue model, positions it as a formidable player in the retail industry and gives it a unique pricing edge over its competitors. In a time when money is tight with most U.S. families, this avenue of business and customer appeal is considerably more attractive than most. 🛍 🛒 *** #Business #ClubStore #Costco #Retail #Wholesale #CustomerSpending

📊 How do the country’s biggest retailers stack up against Dollar General? When most of us think of the biggest brick-and-mortar retailers in the country, we naturally think of Walmart, Target, maybe Costco Wholesale and The Home, among others. As a follow-up to my post about Dollar General's impressive 20,000-store milestone yesterday, here's an eye-opening snapshot of how they compare to the country's biggest retailers. 📌 In terms of retail sales, Walmart, of course, takes the top spot. The retailer delivered over $611 billion in worldwide retail sales in 2023 (Walmart). 📌 Net sales at Dollar General came in at $38.7 billion for DG's 2023 FY (Dollar General). In terms of store count, however, Dollar General is going where other retailers aren't and that's in the country's nooks and crannies to reach customers around the corner in their neighborhood. Here's how that plays out in numbers. 📍Five states are home to 5,800 Dollar General stores--Texas, Georgia, Florida, North Carolina, and Pennsylvania- that's more stores than Walmart has across the country. (via Retail Dive) Check out the great graphic by Retail Dive below which shows how the stores compare in store count. Read more here: https://bit.ly/4aOt31T #TSCG #CREtail #RetailStores #CRE #Retail

Attractive growth for a channel that has always been a leader in private brands in the US and globally. However, understanding the shopper requirements and how to work in the C-store supply chain is where many manufacturers have not taken advantage. This channel can offer manufacturers who want to understand the route to market and deliver thought leadership profitable market share. Growth never stops, but having the right mindset to seize it and meet it where it is versus where you want it to be can make a significant difference.

Retailers from ALDI USA and Target to Tiffany & Co. are reducing prices beyond grocery. April’s Consumer Pricing Index finally showed a small decrease in cost of in-home grocery shopping. Big pricing cuts by Walmart, Target and Aldi may cause challenges for smaller retailers that struggle to compete on price – lets listen in on this week’s episode to learn more… #RetailRadar #Retailers #Grocery #PriceReductions

Retailers from ALDI USA and Target to Tiffany & Co. are reducing prices beyond grocery. April’s Consumer Pricing Index finally showed a small decrease in cost of in-home grocery shopping. Big pricing cuts by Walmart, Target and Aldi may cause challenges for smaller retailers that struggle to compete on price – lets listen in on this week’s episode to learn more… #RetailRadar #Retailers #Grocery #PriceReductions

Playing an ever-growing role within the aisles of dollar stores are private label products. Leading retailers in the channel have grown their respective assortments in recent years by developing items that are something other than name-brand equivalents. This continued effort is not only providing high-value items to consumers but also offering points of differentiation for each retailer. #dollarstores #privatebrands