New Costco exec warns that changes are coming in-store - but the $1.50 hot dog is safe
The new chief financial officer for Costco said he hopes to expand online shopping and delivery options
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Your support makes all the difference.Costco’s $1.50 hot dog and soda combo is safe following an earnings call its new chief financial officer held last month where he revealed some changes coming to the iconic stores.
Gary Millerchip stepped into the role after Richard Galanti stepped down in April following a 40-year run and discussed some plans for the bulk-seller chain.
Monthly sales reports will continue and membership prices will remain where they are now, according to the Wall Street Journal. Costco’s digital business, however, is likely to boost considering Millerchip’s experience at Kroger, where he spent 15 years, and has become a leader in online shopping and pick-up.
“We believe there’s a lot more opportunity to grow digital,” Millerchip said about Costco during the call. “I have experience in those areas and would hope that I can bring some of that to help us continue to evolve, but very much in the Costco way.”
The company is piloting a program that would enable customers to buy items online and pick them up at warehouses.
It’s also been working to expand its ability to deliver and install large household items such as televisions, appliances, furniture, mattresses and washing machines.
A partnership with Uber, which the retail giant is trying to expand, would allow customers to get goods delivered through the platform. The program is currently operational in 17 states and Canada. The company is hoping to expand it into other international markets.
Digital revenue currently makes up 10 percent of Costco’s sales. The company hit $57bn sales in the last quarter. Millership hopes to expand offerings by making more items available for purchase online and allowing shoppers to buy products from different brands on its website at lower prices.
Net income for the latest quarter increased to $1.68bn from $1.3bn.
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