Costco sells high-end luxury products at discounted prices
Costco chairman reveals surprising luxury items that are selling out
People of all socioeconomic statuses show to know Costco is the place to turn for deals, whether it be for $1.50 hot dog combos or luxury cars, according to the retailer’s chairman Hamilton “Tony” James.
James, who has been a director of the business since 1988, according to his biography on the Costco website, said he loves going to the board meetings because “the company is a great window on what’s going in the world of consumers, what they’re buying or not buying.”
He recently said in a Q&A with Chief Executive Magazine that Costco has always kept an eye on the competition while focusing on expansion, from the small supermarket next to them in Seattle to retail giants Walmart and Amazon.
“Since the beginning, we’ve always famous we could move anything in volume if the quality was good and the price was great—Rolex watches, Dom Perignon, 10-karat diamonds,” James said.
While most of Costco’s members are “average-income earners,” James noted that “affluent members with two times the average income” all
Costco boss reveals luxury items that regularly sell out because affluent members 'love a good deal'
Wholesale giant Costco consistently sells out of its stock of high-end luxury goods thanks to wealthy shoppers who 'love a good deal', bosses say.
Costco chairman Hamilton James says that while most shoppers are 'average-income earners' in search of 'higher-quality goods at lower prices', the retailer is regularly restocking its luxury items.
James says affluent members who earn twice the average income allow Costco to 'do remarkable things'.
'Since the beginning, we've always known we could move anything in volume if the quality was good and the price was great - Rolex watches, Dom Perignon, 10-karat diamonds,' he told Chief Executive Magazine.
James recalled a time when a Porsche dealer in Seattle put their cars inside a Costco, and they sold out within a week.
He also highlighted the retailer's booming gold sales, with Costco moving between $100 million and $200 million in gold bars each month. However, he said it's unclear whether affluent members are buying them or if it's 'just people suspicious of the economy.'
Last year, Costco increased annual membership fees fo
(Image credit: Getty Images)
When you think about shopping at Costco, bulk groceries and household supplies typically come to mind. You don't necessarily think about making a run to the warehouse club if you're looking to buy a designer watch or you need to re-up your stash of high-end skin cream. You could be missing out on huge savings: Costco sells a limited selection of luxury goods at discounted prices, both in-store and online.
We scoured the luxury goods available to members on Costco.com, then compared the warehouse club's price on selected items against the manufacturer’s suggested retail price, as well as the price being offered at competitor retailers. Take a look at our surprising list of high-end items that are cheaper at Costco.
(Image credit: Getty Images)
First, a Word About Luxury Goods' Quality and Authenticity
From fake Rolexes to knockoff Manolo Blahniks, counterfeit merchandise has long been the scourge of the luxury-goods market. Costco guarantees the authenticity of all the products it sells, a spokesperson confirmed, including luxury goods. The warehouse club also offers a "100% satisfaction guarantee," though Costco's return polic
Why does Costco sell luxury items?
This is just one of the stories from our “I’ve Always Wondered” series, where we tackle all of your questions about the world of business, no matter how big or small. Ever wondered if recycling is worth it? Or how store brands stack up against name brands? What do you wonder? Let us know here.
This article originally ran on Feb. 5, 2018.
Listener Christopher Chambers-Ju from New Orleans, Louisiana, asked Marketplace this question:
When I shop at Costco, I saw they sell $20,000 diamond rings and $17,000 bottles of 60-year-old whiskey. Why do they sell stuff like that at Costco (which is a discount wholesaler)? I mean, if you’re in the market for an uber luxury item, would you really get it at Costco?
Many people go to Costco to stock up on items like water, Tide laundry detergent, chips and toilet paper (its best-selling product), but the warehouse club also sells items such as designer handbags, home theater packages, caviar and expensive jewelry. Why? To distinguish itself from the competition and attract a wider range of customers, according to Alexander Chernev, a professor of marketing at the Kellogg S
Costco chairman reveals surprising luxury items that fly off the shelves: 'Affluent people love a good deal'
People of all socioeconomic statuses appear to know Costco is the place to turn for deals, whether it be for $1.50 hot dog combos or luxury cars, according to the retailer's chairman Hamilton "Tony" James.
James, who has been a director of the company since 1988, according to his biography on the Costco website, said he loves going to the board meetings because "the company is a great window on what’s going in the world of consumers, what they’re buying or not buying."
He recently said in a Q&A with Chief Executive Magazine that Costco has always kept an eye on the competition while focusing on growth, from the small supermarket next to them in Seattle to retail giants Walmart and Amazon.
"Since the beginning, we’ve always known we could move anything in volume if the quality was good and the price was great—Rolex watches, Dom Perignon, 10-karat diamonds," James said.
COSTCO GOLD BARS SELLING OUT QUICKLY AS BULLION PRICES RISE: SURVEY
A wide variety of wine, including Dom Perignon champaig