Costco Presentation
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Transcript of Costco Presentation
![Page 1: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/1.jpg)
![Page 2: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/2.jpg)
Industry Overview• Annual Revenue 462 Billion
• 2009-14 Growth: 3.5%
• 2014-19 Growth Projection: 2.1%• Costco/Wal-Mart: account
for over 82% of market share
![Page 3: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/3.jpg)
Industry Performance•Key External Drivers• Per Capita Disposable
Income• Corporate Profit• Time spent on Leisure &
Sports• Product Offerings
• Kirkland Brand
![Page 4: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/4.jpg)
Industry Performance, Cont’d
Key External Drivers (Cont’d)
• Competition• World Price of Crude Oil• Costco Gas
• Time spent on Leisure & Sports
![Page 5: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/5.jpg)
Costco-Company Overview• 451 Warehouses• 67 Million Members• Inventory: 3,600 items/store• 2014: 79 Billion in Revenue (6.9% Increase)
![Page 6: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/6.jpg)
Strengths• Pricing Authority• Consistently provide
competitive price• Gasoline • Lower cost, brings members
to warehouses• Brand Loyalty• High quality products• Market share growth• Increased customer base
![Page 7: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/7.jpg)
Weaknesses• Geographic Dependence• U.S. & Canada: 87% of total
Sales in 2014• California: 32% of U.S. sales
• Older Customer Base• Baby Boomers• Growing older, spending less
![Page 8: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/8.jpg)
Opportunities• Attract Younger Customers• 19-34 Demographic• E-Commerce• Google Express & InstaCart• Higher quality apparel• Organic foods
![Page 9: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/9.jpg)
Threats• Competition• Highly Competitive• Sam’s• BJ’s
• Non-Member Retailers•Wal-Mart• Target
• Internet Retail• Amazon
![Page 10: Costco Presentation](https://reader036.fdocuments.es/reader036/viewer/2022081505/589f666a1a28aba6768b6b45/html5/thumbnails/10.jpg)
Company Analysis• Business Strategy• Lower In-Store Inventory• Focus on Higher End Goods• Slow Expansion
• Historical Value• Stock Price (as of 4/24/15:
$148.12• 1 year growth: 32.52%• 5 year growth: 146.04%