Dive Brief:
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In a conference call last week, Costco executives told analysts the company is increasing organic food offerings and boosting its online presence in an effort to appeal to younger customers.
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Company officials admitted that vast troves of some of its items have a stronger appeal to suburban customers than the younger, more urban demographic.
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This new incentive follows news of the company's lower-than-expected earnings, reported last week.
Dive Insight:
Costco's acknowledgement that it must appeal to younger customers is a big one. The question as to what to do about it still stands though. Like rivals Target and Walmart, Costco is saddled with mostly suburban locations, but those larger retailers have made moves to open smaller stores in more urban areas, something that is not likely for Costco any time soon. Revamping some products will help, and company officials report that Costco will work to improve its online commerce, which will not only help attract younger customers, but also help it compete with Amazon.