Costco sees major shift in member behavior

Core Insights - Costco is focusing on enhancing the in-store shopping experience while also improving its digital sales platform to cater to changing consumer preferences [3][4][8] Digital Sales Performance - During the last fiscal quarter, digitally enabled comparable sales increased by 20.5% year-over-year, significantly surpassing the overall comparable sales growth of 6.4% [5] - Digital site traffic rose by 24% and app traffic surged by 48% during the same quarter [5] Management's Perspective - CEO Ron Vachris emphasized the goal of delivering a seamless experience that fosters trust and loyalty among members both in-store and online [6] - CFO Gary Millerchip expressed satisfaction with the increase in digital engagement and anticipates continued growth in digital sales over the long term [6] Strategic Challenges - While improving digital sales is a priority, it may conflict with Costco's core strategy of encouraging in-person shopping, which drives unplanned purchases through the in-store experience [8][9] - The company has implemented early shopping hours for Executive members and extended hours on Saturdays, which resulted in increased sales [10][11] Future Directions - Costco aims to build on the momentum of extended operating hours and explore additional strategies to attract shoppers to physical stores, especially as digital purchasing becomes more prevalent [11]