Food - News

The Costco Inventory Strategy You Probably Didn't Know About
By MATT BYRNE
What a store stocks on its shelves is not something most of us think about regularly, but a stocking strategy can make or break a business. If a store does not have the items you are looking for, you are bound to shop elsewhere — and Costco's stocking strategy actually helps the company retain its customer base.
Costco is exceptionally particular when it comes to its inventory, as it typically opts to carry one type of a particular item over having several options on hand. Costco only carries approximately 4,000 different items, whereas Target or Walmart offers shoppers a selection ranging between 80,000 and 150,000 different items.
Although this can initially seem quite limiting, it is actually part of the secret to the company's success. By stocking only that which will go flying off the shelves, Costco is able to execute part of an overall game plan aimed at tricking people into spending more money while ensuring not an inch of warehouse space is wasted.