Core Concept - Costco's business model combines low prices with a treasure-hunt shopping experience, encouraging customers to explore and discover unexpected items while shopping [1][2]. Group 1: Treasure-Hunt Shopping Experience - The treasure-hunt concept leverages the behavioral principle of variability, where unpredictability generates excitement rather than frustration for customers [2]. - Shopping at Costco is framed as an entertainment experience, where the joy of considering whimsical items enhances the overall shopping experience [3]. - Anticipation of limited product availability creates a sense of scarcity and urgency, influencing shopping behavior positively [4]. Group 2: Product Offerings and Strategy - In the first quarter, Costco introduced new national brand partnerships, including Gap and Ulta gift cards, and various apparel items, reflecting a strategic approach to merchandise rotation [5]. - The introduction of trendy items, such as Dubai Chocolate, has contributed to growth in sales, with Kirkland Signature products outperforming overall sales by offering better value [6]. - Approximately 45 new Kirkland Signature items were launched in Q1, including innovative food offerings and apparel, indicating a focus on expanding product variety during economic uncertainty [7].