Notes from https://www.economist.com/business/2024/02/15/why-costco-is-so-loved

• Costco
  • “arrogantly simple” business model - hook shoppers by offering high-quality products at the lowest prices
  • gross margin iss ~12% vs. Walmart’s 24%
  • 129 million members in 2023 → \$4.6 bn, more than half of operating profits
  • 3,800 distinct items vs. 7,000 items at Sam's Club vs. 120,000 at Walmart superstore
  • Kirkland Signature accounts for over a quarter of sales
  • Staff turnover is 8%
  • offers generous medical and retirement benefits to employees
• Telsey Advisory Group

Notes from https://hbr.org/2024/03/lessons-from-costco-on-sustainable-growth

• Costco
  • intelligent loss of sales
  • To protect low prices, Costco has in place what organizational psychologists call “commitment devices” that deliberately limit what it can do in the future.
  • There is a rule for not marking up any branded item by more than 14% and any Kirkland item by more than 15%.
  • 871 stores

• Four Seasons Hotels and Resorts
  • doesn’t do loyalty programs.
  • Its way of boosting sales and attracting new customers is to offer consistent service and rely on word of mouth.
  • Isadore Sharp is the founder
  • high-touch-service, medium-size hotels

• Unit managers — those who run a single factory, store, hospital, call center, or hotel