Costco: The 'anti-Wal-Mart'

Costco seems to be a steady competitor to the big retailing giant Wal-Mart. The interesting thing about Costco, when compared to other retailers is that they charge a fee of $50 to become a member which is very different from the industry norms, but people would not mind that, because of the savings they end up making throughout the year. Consequently, its margins are among the slimmest in retailing. The privileges also extend to employees, who are paid well and enjoy generous healthcare benefits. The unique selling proposition for this retailer is that, they provide the products in bulk and a rock bottom price with pretty decent quality unlike walmart. Their return policy is one among the best where it permits you to return ANYTHING (except computers) with or without the receipt whenever you want as long as you still have the same membership. This takes the fear out of shopping for many wary shoppers to swipe the credit card, with the feeling that they return it, if they don't like it at any point. Walmart and Target have a 3 month time limit, and most of the other retailers have a 14-day return policy.



read more | digg story