- Costco shoppers have a reason to be excited as the company is reviving its free food samples.
- Costco relies on the in-store experience to drive foot traffic.
- Despite eliminating free samples in March due to health concerns, Costco still managed to beat analyst expectations.
For shoppers who crave Costco’s (NASDAQ:COST) hotdogs, cheap food court finds, and free samples, there’s a reason to be excited. The membership-only retailer is bringing back free samples and reopening almost all of its food courts by the middle of next month, according to CFO Richard Galanti.
Costco Relies on Free Samples to Lure Shoppers
Costco will revive its free food offerings after suspending the legendary customer experience in March over health and safety concerns. But gone are the pre-pandemic days when shoppers can sample on an open tray.
We’re going to start doing some things in mid June on a slow rollout basis in sampling. I can’t tell you any more but it’s – needless to say – not going to be where you go and just pick up an open sample with your fingers,
Galanti also said Costco plans to add previously-removed items back on the menu beginning in the third quarter.
The free food sample is so popular among Costco members that many consider the in-store experience a part of their shopping routine.
Others can’t help but express their excitement when offered to taste some samples.
Some go to extreme lengths just to get more free food.
Costco relies on foot traffic to drive sales as the retailer has been slow to expand on the e-commerce front.
Costco Sales Soar Despite Pandemic
While foot traffic dropped 2% in fiscal Q3, Costco reported revenue growth due to panic buying.
The company beat consensus estimates after reporting earnings per share of $1.89 with $37.3 billion in revenue. Analysts predicted that Costco would print earnings per share of $1.85 on sales of $36.55 billion.
On Thursday, Costco’s stock rose 1.2% to finish at $309.56. Shares of the giant retailer are up 5.5% year-to-date.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer does not own any Costco shares.
Last modified: September 23, 2020 1:58 PM