Costco reportedly will not open the “Costco Fresh” gourmet warehouse store this fall that it had planned as an experiment., but instead will continue to tinker with the fresh food offering in its traditional club stores.
CEO Jim Sinegal told shareholders that at this juncture, it makes more sense for the company to focus on existing formats, not new concepts.
Sinegal said that in opening the 60 new stores, Costco had committed to spending $1 billion this year alone, with plans for both new markets and “fill in” stores in existing markets.
CEO Jim Sinegal told shareholders that at this juncture, it makes more sense for the company to focus on existing formats, not new concepts.
Sinegal said that in opening the 60 new stores, Costco had committed to spending $1 billion this year alone, with plans for both new markets and “fill in” stores in existing markets.
- KC's View:
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We have to admit to a certain disappointment with Costco’s decision on this one; we were looking forward to seeing what it came up with in developing a ‘Costco fresh” format.
Still, the company has opened a “Costco Home” unit that focuses purely on home furnishings. So perhaps the “Fresh” concept is not so much cancelled as delayed until a time when the economy seems to be more robust.
We can only hope, because it is innovation along these lines that keeps the industry vital and vibrant.
