Research Topic

Costco Wholesale Corp.’s second quarter profit took a hit amid higher costs. And for the first time since 2011, the retailer is raising the cost of entry into its stores.   As of June 1, Costco’s annual fee for individual and business members will increase by $5.00, to $60. The executive membership fee will go up $10, to $120.    Costco’s net income for the quarter, ended Feb. 12, fell 5.7% to $515 million, or $1.17 per share, below Wall Street expectations.  

The Conference Board announced a new high for consumer confidence in February, which reached its highest level since July 2001.   The index now stands at 114.8, up from 111.6 in January.  

Move over millennials, Gen Z is snapping at your heels. And retailers should take note.    Retailers looking to capture share of wallet and brand loyalty from Gen Z – the most  digitally- and socially-engaged generation to date — need to step up their focus on new ways of engagement. But they also should pay attention to their physical stores.   

A record 68% of the U.S. population will make at least one purchase via a digital channel in 2017.    That’s according to eMarketer’s 2017 Retail Outlook, which projects another strong year for digital growth. The report forecasts that e-commerce sales will increase 16.0% in 2017 to $462.17 billion, while total retail sales will grow 3.5% to $5.01 trillion.  

In the wake of a disappointing quarter, Target Corp. is making long-term investments in its future.   The discounter plans to spend $7 billion in cash during the next three years as it lowers its prices and invests in its stores, with renovations planned for some 600 locations, reported CNBC.   "We can't capture that market share if we're presenting an old, tired store," Target CEO Brian Cornell said.  

A regional department store, a warehouse giant, a discount supermarket and an online powerhouse rank among the nation’s favorite retailers.    That's according to the American Consumer Satisfaction Index, which rates consumers’ satisfaction across six retail industries. The report found that satisfaction with the overall retail trade rise 4.7% in 2016 to a score of 78.3 (on a 100-point scale) an all-time high for the sector.  

Walmart turning up the heat on prices?   The nation’s largest retailer is not going to let grocery competitors, both newer and more established ones, take away its low-price dominance.   The chain is running a price-comparison test in about 1,200 U.S. stores as it looks to close a pricing gap with such rivals as Aldi and Kroger Co., according to a report by pymnts.com.