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Posted by bookofjoe 1 day ago

Costco is the anti-Amazon(phenomenalworld.org)
528 points | 520 commentspage 2
newsoftheday 5 hours ago|
We are probably fortunate, we live 5 minutes from one Costco, 6 minutes from a second one and 17 minutes from a third. My wife visits Costco every week, Walmart every week often on different days, etc. We buy from Amazon online frequently. Sometimes an item is cheaper at one place than another, comparison shopping, sometimes cheaper online, sometimes cheaper in the store.

It all works, though the article mentions public stores and references military commissaries as an example. We can shop at the commissary if we want. We don't because the other stores I mentioned above cover all our needs better at a better price point.

I do not think the article's author understands the subject matter as well as they think they do and with the many political references to the current New York mayor; it may just be disguised political messaging article.

__float 4 hours ago|
Why do you need to visit Costco every week? This feels like the most inefficient combination of the city-style "shop small quantities often" and suburb-style "buy everything in bulk once a month".

> ...it may just be disguised political messaging article.

It doesn't seem to be particularly for or against the NYC proposal to me, so I don't understand why you are suggesting this.

rawgabbit 3 hours ago|||
Not the person you are replying to. I live near a Costco and it offers good value for money. I go there multiple times per week. I use their pharmacy which is very reasonable even without insurance. I buy fresh produce and eggs and milk and salmon. I get my tires rotated and balanced there. I also get my eyeglasses made there. Their food court is also something I can’t pass up.
jungturk 3 hours ago||||
Costco sells fresh food (produce, meats, baked goods) and quite a bit of prepared-on-site ready-to-eat deli choices (soups, salads, tacos, etc...).

While sold in larger packages, they don't last any longer and so must be bought frequently.

testfoobar 3 hours ago|||
From families I know: food is the reason. Athletic teenagers consume a lot of calories. Proteins, fruits, and vegetables along with milk, eggs, cheeses and snacks are easy to buy in bulk at Costco. These items are replenished weekly.
frollogaston 1 day ago||
Costco is mostly food, clothes, furniture, other large things, and auto services, which generally you don't get from Amazon even if you aren't a Costco member. The points about less choice more apply to like Costco vs grocery stores or Walmart. And I do like Costco, similar low-choice reason I like Trader Joe's even though Costco is its own league.
DrewADesign 1 day ago||
Yeah I can’t get 5 different varieties of a ball bearings in the size I need delivered overnight from Costco. And for the things Costco or your local grocery store is great for, Amazon is often a far worse option. I noticed my wife was buying our toothpaste using a subscribe and save thing, so I compared it to our regular grocery store when I went shopping, and Amazon was like 20% more expensive. Great marketing on Amazon’s part getting people to assume it’s always the lowest price, but it’s often not.
frollogaston 1 day ago||
The dumbest assumption I saw Amazon baiting people into was using Chase credit card points for purchases. You'd think spending those specifically on Amazon would be more efficient than just getting cash and buying from Amazon with that cash, right? Turns out it's the other way around, and by a large amount.
borski 23 hours ago|||
They often have promotions which can make this very lucrative. “spend at least 1 mile, get 40% off” etc
mtzaldo 1 day ago|||
yes, I started buying with miles because Amazon was giving me more value for those than my current bank.
lemoncucumber 23 hours ago|||
The Trader Joe's model is an interesting comparison with the Costco model.

Similarities:

* Like you said, both have fewer choices than a conventional grocery store: if you want ketchup or peanut butter, there's only going to be one brand and one size.

* Both of them don't have scales at the registers: unlike at a conventional grocery store, nothing is sold by weight (which I'm sure provides another small efficiency gain).

* Both of them are cheaper than your typical grocery store.

Differences:

* I feel like Trader Joe's leans on store brand / white-labeling items more than Costco -- yes Kirkland Signature is a thing but Trader Joe's takes it further.

* The shopping experience is pretty different both in terms of the in-store experience and the quantities things are sold in.

* Costco requires a membership, Trader Joe's doesn't.

I wonder which elements of the two models would work best for a public grocery store.

khurs 22 hours ago|||
Trader Joe is owned by one of the two German Aldi groups (two brother split original business to have one each) And both of them employ the same model globally.

They are huge - ~15,000 stores worldwide and growing fast

https://en.wikipedia.org/wiki/Aldi

drnick1 12 hours ago||||
Trader Joe's stores are tiny compared to Costco, and only sell food.
snark42 20 hours ago|||
> unlike at a conventional grocery store, nothing is sold by weight

Costco and TJs both sell items like meat by weight, they're just pre-labeled so they can be scanned rather than weighed at the register. Things like produce that might be weighed elsewhere are sold by each or container though.

rootusrootus 4 hours ago||
And regular grocery stores like Kroger do much the same thing. Aside from picking out individual produce items, and even then a lot of times it is per-item pricing. Nearly all of the by-weight stuff is pre-labeled
jitix 1 day ago|||
As per their financials it’s roughly 50-50. I personally buy groceries and household consumables for the most part apart from the occasional electronics purchase.

IMO Costco’s food hits the sweet spot between high end grocery store quality and walmart level price.

ironman1478 1 day ago||
I think a lot of people buy furniture and clothing on Amazon. It's extremely cheap and easy to return, or just throw away if you can't return it (not endorsing that).
frollogaston 17 hours ago|||
I do actually buy furniture from Amazon and Walmart, don't think I'm the common case though. And wow it's annoying to get rid of the packaging after.
ButlerianJihad 23 hours ago|||
I purchased a new mattress to fit my fold-out futon frame, from Walmart.com.

And the reason I chose Walmart at that time is because they offered good products, mostly first-party inventory (despite the marketplace format) but moreover, they offered a quick add-on option at checkout to hire a haul-away service to come to my door and haul away the junked, old mattress.

I own no vehicle; I live on the second floor no elevator, and the haul-away service was a godsend and a bargain price.

scamdrill 1 day ago||
Highly recommend the Acquired podcast and their Costco episode if people want to dive deeper into the history of this company.
kejaed 1 day ago||
https://www.acquired.fm/episodes/costco
gorfian_robot 14 hours ago||
yep. super good. I've recommended it a ton.

the one on Trader Joe's is also excellent.

sholladay 17 hours ago||
I understand the appeal, but let’s be honest. Costco is designed for rich people who think they are frugal. You drive your big SUV there to load up on months worth of food and goods, which you can only do because you have a big house with enough storage for all of it. And who cares if some of it goes bad because you can always go back for more and hey it was so cheap anyway. You even pay a membership for the privilege.
cavoirom 17 hours ago||
I think average familiy could do better at financing so that they can affort to plan for 1 month or more on groceries. For me, it's not about rich, it's about planning, I must know exactly what I need before I go there. It save time and but stability, I have at least 1 month buffer on common goods shortage.
probablycorey 17 hours ago|||
46% of Costco shoppers are middle class (earning $40k-$125k) and 33% are upper class and according to market research companies.

Membership is $65.

You don't need an SUV to shop at Costco, it is easy to load the groceries into a sedan.

whall6 17 hours ago|||
I’m not sure you have to be that rich to pay the $300 per year membership to buy food at loss leading prices. The bulk sizing of everything at Costco is overblown anyways. I wish it was bigger
AstroJetson 17 hours ago||
Membership is only $65 a year and I save more than that on diapers. So it pretty easy to cover the fee.
culi 15 hours ago|||
I know it's not your point, but the idea that SUVs have more cargo space is a myth. They are large cars with really thick hulls but they do not compete with station wagons, minivans, etc when it comes to cargo space

https://www.consumerreports.org/cars/buying-a-car/measured-c...

kulahan 17 hours ago|||
If you think "has an SUV and can buy food in advance" == "rich", then the billionaires truly have scrambled your brain.
inigyou 10 hours ago||
We don't know from which perspective they're speaking. They might live in a dense European city in an apartment without a car and without parking, and with a supermarket 10 minute's walk away.
insane_dreamer 16 hours ago||
I go for the $1.50 hotdogs

(just kidding, but they are the best priced hotdogs anywhere! smart move by Costco even if it loses money on them)

christina97 21 hours ago||
This post seems quite far fetched. Amazon is well aware of the paradox of choice, and the vast majority of UI changes I have seen recently are exactly those that guide and reinforce you to buy one option, without the decision paralysis. Items are not homogeneous, and it is obvious that they try to concentrate purchases to a smaller set of SKUs to reap the same benefits as Costco. It’s simply that Amazon can additionally support the long tail of SKUs with a heterogeneous warehouse system (and heterogeneous profit margins).

On the delivery side: US suburbia is just in general not a sustainable solution. Delivery is just one way in which it bites. Somewhere like NYC, the amortized delivery cost (internalized or externalized) is very low (and opposite to Costcos which require a drive to an inconvenient location).

The bit about agents doing your shopping is falling for the same trap as crypto people thinking NFTs will kill Ticketmaster. These have never been technical problems: the APIs don’t exist for nontechnical reasons.

thijson 4 hours ago||
I know that I trust products from Costco being good quality, I'm less likely to regret my purchase decision. I've been burned with stuff I got on Amazon being crappy.
titanomachy 21 hours ago||
Somehow Costco managed to get their store right in the middle of downtown Vancouver. They put it under some condo towers.
Grombobulous 21 hours ago||
That sounds like they might have leveraged housing development incentives. In a lot of cities with high housing costs you get tax breaks for investing in residential properties.

I don’t know if Vancouver has any of these off the top of my head.

And what you’re saying is true as a generality, that big box stores often fit in at least some parking in dense areas. I have found that grocery stores and big box stores do the most parking subsidies especially when they expect their customers to be buying a lot of bulky items. They seem to frequently have free or deeply discounted validated parking in underground garages.

Maybe not in Manhattan or anything but in many other large cities with high land value in downtown areas.

narag 18 hours ago||
I just realized that I use more different kind of stores and transportation to shop than ever. I walk for groceries, ride the motorbike to malls for monthly or yearly buys like clothing or light electronics, take the metro to specialized stores for heavier items and buy online hard-to-find or high-margin-elsewhere stuff. Also online buys are seldom delivered home, but to a nearby convenience store because work hours match delivery hours.

Thinking of changing this distribution is highly disturbing because of time wasted, much more limited options and huge price differences. Of course YMMV depending on location, Madrid here... the world the article describes is totally alien to me.

culi 15 hours ago|
I've rarely lived somewhere where I can't bike to a grocery store within 10 minutes. It's definitely something I look out for when picking a place to live. I can't imagine having to drive every single time and I dread the few times I do have to get in a car to get something
seanmcdirmid 22 hours ago||
Amazon is the anti-Costco also. We thought about it, and it doesn't really make sense to get a Costco membership when we can lean into Prime more. It doesn't help that we live in a fairly urban area (Ballard in Seattle) and Costco's is pretty suburban.

I'd much rather order some heavy stuff from Amazon to have delivered and walk to the local grocery store for everything else.

gleenn 22 hours ago||
A major upside to Costco is you can actually see stuff and you also can walk out of the store same-day. Also I never ever worry about the counterfeit and/or low-quality crap you inevitably get from Amazon. And if Costco sells me something crappy, I drag it back in and don't even have to start up the printer (it's a zombie at this point). Costco has a running rule that they never charge above 10% in profits so I know I'm getting a good deal too.
skeeter2020 22 hours ago|||
What about the price-quality aspect? Costco blows Amazon away here IME. Plus there's the fact that someone can become an employee of Costco out of high school and spend their entire career there, with decent wages and benefits. That's not happening at an Amazon Prime fulfillment warehouse.
random3 22 hours ago|||
You can order from Costco on Instacart here in the Bay Area. This said, there's a lot of quality stuff at Costco (besides their huge wines collection) that you can't find anywhere else.
icantevenhold 22 hours ago||
As someone who finds ordering groceries obscene what kind of heavy stuff do you get that you need to order in?
seanmcdirmid 22 hours ago||
Generally the bulk things I would have gotten at Costco, which isn't much for our family, so mostly protein drinks, olive oil, and so on. They come in pretty big cases, and it definitely seems like the heaviest thing the Amazon driver is delivering that day.

We still drive to the Chinese grocery for a big bag of rice every once in awhile.

icantevenhold 10 hours ago||
Ok that makes sense to me, so you do this once or twice per year?

I used to buy a lot of olive oil in canisters in Italy when on vacation. Just can’t match the quality with what you get on the open market here.

bobbytheblkbear 1 hour ago||
Costco prices suck and I don't know why people clap for them.
cisrockandroll 22 hours ago||
I would love to hear more about Costco's engineering culture. The fact they are still running/modernizing/supporting AS400 infrastructure and RPGLE applications is remarkable. I have to imagine that they have a unique devops model internally to keep that alive; especially facing a dwindling talent market.
dhosek 16 hours ago|
Costco is also an anti-Amazon in that they treat their workers and their suppliers well.
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