There is method to the madness here. Warehouses (a.k.a. stores) that seem haphazard and chaotic are in fact run with military precision, and virtually every detail of merchandise selection, store layout, and pricing is designed to turn wary first-timers into loyalists. Charlie Munger, Warren Buffett’s late lieutenant and a longtime Costco board member, famously said that he wished everything in the U.S. ran as well as Costco. Indeed, the company has nailed the science, and art, of retail like virtually no competitor.
Costco’s eclectic sales assortment—Shrimp cocktail! Khakis! Coffins!—has helped embed it firmly in pop culture. Costco obsessives throng dedicated groups on Instagram, Facebook, Reddit, and X to trade information on a great find, or discuss which celebrity was spotted in which of its 600 U.S. stores, or just to bemoan leaving a store after spending $300 more than they’d intended
An interview with the former CEO, Jim Sinegal which explains more of the corporate philosophy
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