𝗖𝗼𝘀𝘁𝗰𝗼’𝘀 𝗴𝗿𝗼𝘄𝘁𝗵 should be a wake-up call
- machristineoffice
- Mar 24
- 1 min read
At least according to their latest Earnings Report.
For reference, I still keep hearing it.
“Digital is only X% of retail.”
Yeah bro, we get it.
Yes, e-com is still smaller than retail.
Brick and mortar will be 79% of retail in 2026.
According to CapitalOne.
It’s not the percentage of total retail that’s staggering.
It’s that this percentage grows 1 - 2% every year.
But more than that, the locus of control it offers.
B&M will always be the epicenter of commerce.
More and more ecom orders are being fulfilled from B&M.
And guess what?
Costco‘s CFO agrees with me.
According to their Q2 earnings call.
Costco‘s growth is coming through digital:
• 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝘀𝗮𝗹𝗲𝘀: +22.6% YoY
• 𝗪𝗲𝗯𝘀𝗶𝘁𝗲 𝘁𝗿𝗮𝗳𝗳𝗶𝗰: +32%
• 𝗔𝗽𝗽 𝘁𝗿𝗮𝗳𝗳𝗶𝗰: +45%
Wanna hear something even crazier?
𝘊𝘰𝘴𝘵𝘤𝘰.𝘤𝘰𝘮’𝘴 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭𝘪𝘻𝘦𝘥 𝘳𝘦𝘤𝘰𝘮𝘮𝘦𝘯𝘥𝘢𝘵𝘪𝘰𝘯𝘴 𝘴𝘦𝘤𝘵𝘪𝘰𝘯 𝘥𝘪𝘥 $470𝘔.
You know, the “you might also like” section?
It did more than Kristy Kreme did store wide.
On one particular carousel.
Costco is leaning hard into digital.
- Ship to Home.
- Curbside Pickup.
- Third-Party Delivery.
Again, their words, not mine.
The questions we may want to be asking:
- Where is the growth in retail coming from?
- What are the behaviors consumers are drifting toward?
- Which opportunities represent an arbitrage?
What do you think?
Can Costco continue its crazy growth rate?
Is there any ceiling in site?
———
We are working 5 Costco rotations right now.
We have done more than any agency or operator you’ll find.
Comments