Wholesale chain Costco is evolving to changing buying habits of consumers, and with most book lovers turning to purchase books online from stores such as Amazon, the chain has decided to halt sales from book sections in most of its 600 locations in the U.S. starting in January, after decades of discounted book sales.
Costco explained that the move was precipitated by a desire to focus on more efficient stocking practices.
Why Is Wholesale Chain Costco Discontinuing Book Sales?
One of the biggest reasons to discontinue its book section was that, unlike other items which could be handled by mechanized processes, books required human handling, which was very labor-intensive.
Costco’s actions did not come as a bolt out of the blue, since it had already informed publishers that books would be stocked only during the festive seasons from September to December starting in 2025.
Costco also enforced a slew of other measures to evolve according to the changing market scenarios.
This includes augmenting membership fees and introducing a policy requiring membership ID cards to be scanned for entry. Thus, in September, the popular Gold Star membership was increased from $60 to $65.
However, the company has not completely done away with its association with books and stated that books will still be dispensed from 100 Costco locations year-round.
However, it will be on a wait-and-see basis, and if the sales are satisfactory, the number of such stores could be increased. However, if the sales are not up to the mark, more stores could see the closure of their book sections.
The company stated:
“If book sales do well at stores where they remain, books could return to more locations. However, if sales continue to lag, additional book sections may be removed.”
The managers of the retail outlet are also keeping a close watch on the sales performance of their competitors.
They are also tracking high-profile releases like the Taylor Swift: The Eras Tour book. Target has the exclusive rights to sell the latter in its stores.
As Costco evolves to the changing dynamics of the market, it is interesting to see how successful it will be and how its actions will impact its future operations and customer loyalty.
