Costco Selling $7 Billion of Apparel a Year !!


Several AAPN members have shared their Costco costing stories with me. One even allowed me to see the entire cost spreadsheet. It was BRUTAL. They focus on pennies per order for typically 600,000 garments and up! To Costco, 600,000 shirts in 4 colors and 5 sizes is not 20 SKU's, it is 1. Finding your size and color is a treasure hunt. I had no idea they did $7B a year until this article:

Costco quietly becomes a destination for clothes
The warehouse chain sells $7 billion of apparel each year, more than Old Navy or Neiman Marcus
Washington Post: July 1

Kelly Davis has started doing something she once considered unthinkable: buying clothes at Costco.

The 31-year-old had long resisted the warehouse chain’s clothing aisle. She felt weird buying dresses and shirts at the same place that she bought groceries. Plus, she said, “It’s where my mom shops."

But eventually, a pair of Jessica Simpson jeans — light blue, distressed, with holes, for $13 — did her in.

“Costco has really stepped up its game,” said Davis, who lives near Dallas. “The clothes are actually stylish. It’s not just old mom stuff anymore.”

Americans are increasingly picking up tops and trousers from a retailer better known for its no-frills warehouses and bulk everything. Apparel and footwear now generate more than $7 billion a year in sales for Costco; that’s more than Old Navy, Neiman Marcus or Ralph Lauren. Revenue in that category has climbed about 9 percent a year since 2015, outpacing sales growth for food and electronics, according to recent earnings calls. Read More