Costco, Target and Walmart are the major supermarket chains in the United States. They are the ones with the highest number of consumers and, therefore, the highest sales. Competition between the three has been ongoing since their inception, and not only between them, but also with the retail trade. However, Costco appears to be taking the lead in implementing a new business strategy that meets all customer needs. The renewal of its mobile application, customized offers, increase in catalog and alliance with Affirm, have positioned it a step ahead of its consumers.
Costco, Target and Walmart
They are the three most recognized names in the United States when it comes to department stores. Present throughout the country and beyond its borders. They are establishments that have a wide and similar catalogue, which is why they compete with each other. Offer food, drink, home products, tires, retail, shoe store, sports products, and a very long etcetera. Although all have mobile application, discounts, offers and own products, each uses different marketing strategies and loyalty that are what make the difference in terms of competence.
Costco is ahead of its competitors
Costco’s latest strategic move has left Walmart and Target behind. It has chosen to combine technology, personalize the user experience and offer financing facilities. This strengthens relationships with loyal customers and attracts those undecided by so much offer. In this new scenario, both Walmart and Target will have to respond with new marketing techniques if they want Costco to continue leading the market.
Costco´s new strategy
Gary Millerchip, the CFO of Costco, noted at the second quarter results conference that the company’s data had been positive and that his intention now was to improve the user experience. To do this, they want messages and actions to be more personalized. The measures they have implemented are:
- Improving the mobile application. It has been the cornerstone of your new strategy. With over 43 million users, will offer new benefits to customers. From now on you will be able to check the availability and price of products depending on the store you choose. In this way, they will not have to travel in vain and will be able to organize their purchases.
- If you are a member of the app, you will be able to see how the catalogue of offers fits your usual shopping list. In this way, they intend to give a plus to the value of membership, differentiating it from those who do not have it.
- Kirkland Signature products feature a wider variety of snacks, liquors and beverages.
Your service stations will be open for longer, and members will enjoy a 5% discount.
You can finance directly from the web up to 36 months for purchases over $500, thanks to its new alliance with Affirm.
Huge advantage
Although Target bet on a pleasant user experience and Walmart for low prices, the reality is that Costco has managed to unify all these needs. Good prices, quality products, pleasant spaces, personalized promotions, fully updated and functional mobile app, web financing. What else can you ask for? The combination of technology and exclusive benefits used by Costco has hit the mark. They have known how to keep the already loyal audience and attract new ones.
Without a doubt, this time Costco takes the gold with its new positioning strategy, and forces its competitors to get their act together and offer something totally different and innovative.The next step will be to become a member of Costco (if you are not already one), attend one of its establishments and benefit from all its advantages!
Have you already tried the new Costco products for the summer?
