Top
Best
New

Posted by bookofjoe 1 day ago

Costco is the anti-Amazon(phenomenalworld.org)
528 points | 520 commentspage 3
earljwagner 1 day ago|
There's another reason for Costco's appeal and trust among members: Kirkland Signature. Costco mandates that any KS product must be at least 10% better in quality than the leading national brand it replaces and/or cost less.

That further helps simplify shopping and decision-making and resolves the paradox of choice. Instead of having to sort through a wide variety of unknown brands on Amazon, they just go with KS.

https://www.thestreet.com/retail/costco-reveals-why-kirkland...

amelius 7 hours ago||
Ok, let them both commoditize their complement.
cube00 18 hours ago||
It embodies the precise opposite of everything imagined by the e-commerce futurists

Costco do plenty of online only offers, partner with Doordash/Instacart, even sell holiday packages so I'm not sure how the author arrives at the conclusion they're at the "precise opposite of everything imagined by the e-commerce"

The only precise opposite is that they're still paying IBM goodness knows how much to stay on their AS/400 architecture.

yawnxyz 1 day ago||
I like the idea that Costco and Amazon are diametric opposites — for example I couldn't shop at Costco for a very very long time because I lived in the city and didn't have a car.

Amazon and other delivery companies (e.g. Weee) came to the rescue. For a while I lived close enough to a Costco for a 20 minute bike, so I'd load up my gym bag full of food - even then Costco is not ideal because there's only so much you can carry (one thing of meat, one thing of eggs, some veggies).

For those that think Costco are the uber-shopping experience are missing that they both provide very opposite consumer experiences. (Yes Costco has shipping, and same day shipping, but it hits different from Amazon).

This is also opposite to corner store grocery systems where you can pop in at any moment to get fresh fruit, a wider choice, smaller quantities at more flexible hours etc.

---

tldr - what I think I'm saying is that Costco is the perfect "suburban" purchasing experience - great if you tick the boxes that you have a big family (otherwise why do you need a 60 pack of toilet paper), a big house (where do you fit all that toilet paper), a car (to transport the toilet paper), etc.

anyone who don't tick those boxes can't really take advantage of any of that - so while Costco is amazing, it definitely shouldn't be the only way to shop.

rr808 1 day ago||
I dont like Costco, it epitomizes American over-consumption. Parking lot overflowing with oversized SUVs with people loading up oversized trolleys with food from food corporations to take back to their oversized fridges and storage basements.
rpdillon 1 day ago||
Over-consumption? That doesn't follow. I sustain my family on Costco, going once a month or so, but have to feed four people, including two teenagers that consume way more than 2000 calories a day. You keep using the word "oversized", but that assumes the SUV, the fridge, the trolley are not suited for purpose. But they are!

I think what you're really critiquing is people who don't shop frequently, and therefore buy in bulk.

oezi 23 hours ago||
I think the poster is indeed criticizing bulk shopping. I would then to agree that shopping in bulk makes it easier to overprovision or to have things go to waste or being bought superfluously. I am also not sure about it being cheaper in total because my experience with bulk sellers is that they achieve their profit margins by their product mix, so selling you some cheap items as loss leaders or discount items and recouping on others that you buy at the same time. Doing weekly shopping trips at different supermarkets can counteract that by letting you buy more various promotional items.

Of course it comes down to how much personal time you then have to spend on shopping to drive your bill down.

rpdillon 22 hours ago||
I've done the A/B test. Costco saves my family 25% across just food, ignoring other stuff I get there (batteries, shirts, jackets, shoes, underwear, deodorant, etc.)

You're pointing out that you need to plan properly to bulk shop, since you're necessarily modeling future consumption over days/weeks across multiple people, but that's different than over-consumption. It means you have to be analytical and plan, but that's exactly how we do it.

I despise the city living lifestyle, where folks jam themselves in tiny grocery stores to buy 2oz containers of jam and mustard because they don't have enough room to actually fit the food they want. My sister and dad live this way in NYC, and it's annoying as hell every single time I visit them. Wanna throw a meal together? First step: leave the apartment.

adi_kurian 21 hours ago||
There are four Costco's in NYC, all but one in working class neighborhoods, and full of large families getting deals.
rpdillon 20 hours ago||
Yeah, they're in Manhattan. Wasn't trying to paint NYC as homogeneous, just wanted to ground my opinions with experience folks can understand.
tacomonstrous 20 hours ago||
I know there's at least one Costco in Brooklyn
dghlsakjg 1 day ago|||
If you don't like American over-consumption you can go to Carrefour and try out French overconsumption where people load up oversized trollies with corporate food to take to their SUVs in the overflowing parking lot... in France.

Are you under the impression that it is a uniquely American trait to have a bigger house than you need, more car than you need, and a penchant for corporate food? Over-consumption is human nature, not an American invention. America just happens to be able to afford it on a scale that most countries can't. Go to the poorer countries on earth, and you will still see people over-consuming if they have the means.

Maybe it isn't even overconsumption. Maybe it's just a different way of getting things done. Do you think that the people that buy Costco sized packs of toilet paper wipe their ass unnecessarily? Or maybe they just make fewer trips to the store to buy toilet paper.

oezi 23 hours ago||
Since toilet paper is mostly non-perishable it shouldn't really matter, right? But for anything that goes bad there is also a tipping point where you bought too much and have things go to waste.
dghlsakjg 22 hours ago|||
In which case you buy a smaller quantity elsewhere. I don’t know anyone who shops exclusively at Costco. Most people buy large quantities of the things they use a lot of at Costco, and also visit grocery stores for other things. Besides, most of what they sell has a long shelf life. With the exception of their very limited produce and Dairy, just about every other perishable food they sell is freezable.

The people I know who shop at Costco aren’t throwing away half of what they buy. They are very often families that are actually pretty efficient about using what they buy. Big families, restaurants, remote work camps (I live in Canada) are the people I see completely filling carts and SUVs at Costco. For them, shopping at Costco is a way to avoid waste in terms of small packages and multiple small trips.

While there are certainly people that shop there and waste what they buy, it’s a pretty overused exaggeration to say that it is any more than a small fraction of their buyers. If you want examples of frivolous consumption, a barebones warehouse store selling staples in bulk is kinda the opposite of that in many ways.

stevenhuang 21 hours ago|||
Do you really think families waste half of what they buy at Costco?

Come on now.

oezi 19 hours ago||
I said nothing about that. But there are tipping points where buying too much is actually wasteful.
khriss 1 day ago|||
If that's the only thing you can find to dislike about Costco, then they are indeed the saints of the retail world.
anon7000 1 day ago|||
Costco is one of the few stores in America that attempts to give great value to consumers. Most supermarkets just don’t
SoftTalker 1 day ago|||
Aldi seems to. I thought of them as I read about Costco, not because of the size of their stores (which are generally quite small as supermarkets go) but because of the limited choices. Aldi normally has everything I need but doesn't have a lot of choice in any individual thing. It makes shopping there feel very efficient.
TulliusCicero 15 hours ago|||
God I wish we had Aldi in the PacNW. I know, TJ's is technically owned by Aldi Nord, but it's really not the same.
skeeter2020 1 day ago|||
Walmart does this too, and it's one of the worst experiences/value-propositions I've ever experienced. It might be better in the US but in Canada it's expensive, poor quality and painful: pick three.
SoftTalker 21 hours ago||
Walmart stores are huge though, particulary the SuperWalmarts with supermarket and department store combined. Aldi is compact, maybe 4 or 5 aisles, a refrigerated section, and a frozen food section.
esskay 1 day ago|||
Not sure that counters their point...or even relates to it.
pizzafeelsright 1 day ago|||
Enforcing appropriate sized consumption is a terrifying thought.
gustavus 1 day ago|||
Because of the large quantities my family with 4 children is able to go to Costco once a month and purchase almost everything our family will need for the entire month this means we only need to go to the store one or two additional times during the month for things like milk and bread.

Saying that everyone eating there is indulging in overconsumption is a ridiculous overgeneralization. Not to mention people that are planning parties, bbqs, get togethers etc. Just because you can't think of any reason for people to need large portion sizes besides overconsumption does not mean others are so limited in their imagination.

skeeter2020 1 day ago||
We have a larger family and Costco combined with access to a decent grocery store that's within walking distance is great: get deals on larger quantity staples and milk, eggs and bread several times a week.
Amezarak 23 hours ago|||
> to take back to their oversized fridges and storage basements.

It's really awesome to have plenty of food storage, with extra and oversized refrigerators, and a deep freeze too.

I keep mine full of vegetables and beef - I have a whole beef slaughtered annually.

Can you explain why this is a bad thing or why it means overconsumption? Why is the stereotypical "European" method of going to the store every day superior to me spending ~10 minutes once every two to three weeks to go to Wal-Mart? What do you do when there are shocks, like weather events, power outages (my generator will tide my fridges over, but will take down a store POS terminal), civic unrest, or pandemics? Or if you're just plain busy? I really appreciate being able to be fully stocked (with rotating backups so I am never actually out) of basically all foods and home staples (like TP). What's the downside?

titanomachy 22 hours ago|||
There’s nothing wrong with your way, it’s just a different lifestyle based on how dense of a community you live in. People living in apartments in dense cities don’t have room for a whole cow in their apartment, but there’s probably a few grocery stores in walking distance, so they pick up food more often. Living in a suburb means that you probably don’t walk by a grocery store on your way home from work, and you probably have some space, so it makes sense to shop less frequently and in bulk. These are both valid ways to live that satisfy different sets of preferences.
Amezarak 20 hours ago||
Well, that’s what I’m getting at. There’s no reason I can’t go to the store every day - I pass right by a lot of grocery stores. I don’t want to go in them or even think about buying stuff any more than I have to - it’s tedious. I want to always have almost everything I’d want on-hand.

I think the the GP would love this too if it was practical- but it’s not for him. I’d be more interested in hearing the exact reasons why. I don’t think density is itself that related; you can pack in quite a lot with good organization. I do wonder if it’s a rental vs buying thing; in the US the average trailer is about the same size as the average apartment, but you’re way more likely to see extra refrigerators and deep freezes and stuff of that nature in trailers, because they’re often owned and the resident is responsible for all the appliances, whereas the cultural expectation for an apartment is even though you could get more, it’s the landlords’ area to handle. So I wonder how much is just really small cultural things vs practicality. Thus getting more to his dislike of it - but I’d be interested to here more specifically his thoughts.

pandaman 2 hours ago|||
I remember seeing pictures from a real estate listing of some euro prince house: he did not have a dryer, just a tiny washer under the counter in the single bathroom, the kitchen had just three-four cabinet sections and an apartment size fridge, no pantry and no closets of any kind, he just had IKEA-level dressers in the bedrooms and mini-split A/C on the wall. You can't really store much food or anything in there w/o turning it into a hoarder house. And this is a royalty house, I imagine common people's apartments are not going to be roomier.
garbagewoman 23 hours ago|||
Minor point: you have a whole cow slaughtered annually.
tomcam 23 hours ago||
What sizes of SUV, trolleys, fridges, and storage basements would meet with your approval?
Grombobulous 22 hours ago||
I think the article misses discussing Costco’s growing online business. There are a ton of Costco items that you can only buy online or that are sold in a different way online, and they’re often doing so with included shipping very similar to Amazon’s business model.

The shipping is slower, but it’s an interesting part of their business, and I encourage Costco members to try it out. You’d be surprised at the quantity of things you really don’t need to go to the warehouse for.

aabajian 18 hours ago||
I don't think anyone has mentioned the obvious middle ground: PO Boxes at USPS post offices. Nearly every town and city in the USA has a post office. Instead of driving packages to individual's homes or having businesses deliver to their specific warehouses, the middle ground is to deliver everything to the USPS offices.
toast0 15 hours ago|
UPS, Fedex, and Amazon all use USPS for some last mile deliveries. It's usually a little less when using UPS and Fedex; not sure if Amazon bills less for it because I use prime shipping so the cost is hidden.
adi_kurian 1 day ago||
If the stats in this are true, Amazon’s warehouse workforce turns over at 25 times the rate of Costco’s workforce, for almost the same wage. That is remarkable.
ggm 20 hours ago|
Time and motion/Taylorism is an anti pattern for staff retention. There is more to work than pay. Being humiliated and hassled over pee breaks for instance.
moviet 19 hours ago||
Has Amazon ever tried a curated, low-SKU section of the website? I guess that’s just the “Overall Pick.”

For that is a large appeal of Costco. If I need a blanket, I can visit a Costco and buy their softest blanket with no hesitation. It will be around $20. If it’s bad, they have the most generous return policy.

pandaman 2 hours ago||
Costco is not only curating the selection: most products you buy there are created specifically for Costco, even if it's not the "Kirkland" brand, it's an SKU you cannot find elsewhere. Amazon would need to figure out the process of creating such products first and I see it's been trying: there are "amazon basics" brand products and even house brands ("Denali", I think, is Amazon's tool brand). The problem is that unlike Costco, Amazon cannot offer much to the suppliers of such products. Costco gives a limited shelf space in their high traffic stores in exchange for a discount and warranty. What can Amazon? Only thing I see is "amazon basics" being a bit more valuable than the brands like GOOLOO or MEPTY.
hahahaa 17 hours ago||
Biz idea for you. Make that as an external site using Amazon associate.
QuiEgo 4 hours ago|
I like Amazon's service. Parking at Costco on a Saturday is absurd to the point there's memes about it. I really hate standing in lines. Delivery to my door is awesome and I'm willing to pay extra for it. I also see the Amazon truck going house-to-house and don't feel guilty: I'm just one more stop along the way, my marginal impact is nothing at this point.
Loughla 4 hours ago|
Your last sentence is literally the tragedy of the commons.
More comments...