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> The entire concept is optimized for upper middle class suburban families with cars. Once millennials age into middle age over the coming decades, will they ha

> The entire concept is optimized for upper middle class suburban families with cars. Once millennials age into middle age over the coming decades, will they have kids in the same numbers as their parents (data says no) and thus need or want to buy in bulk? Will they live primarily in the suburbs where warehouses are primarily located? Will they have cars to even get there? Will they want to pay for a membership when they already have Amazon or wide availability of other stores that deliver for free? My girlfriend and I are millenials with no children. We still have a Costco membership. Hell, I had a Costco membership before I met her, when I lived alone. I buy all my gas at Costco, and the savings alone from that usually equal or exceed the $60 membership dues by the end of the year, so everything else is pretty much gravy.

tempsy 7y ago
yes, same. That doesn’t refute anything though when it comes to looking at how a massive generational shift will impact their business. It’s not incorrect to say this is a business that whose main target is upper middle class suburban families with cars and that in 10-20 years middle aged millennials will in aggregate likely have fewer reasons to go to Costco in the same rate as our parents for all the reasons mentioned above. going to Costco as a single millennial is basically a hack, not the target customer at all
- AdmiralAsshat 7y ago
  I guess I disagree with your premise that childless millenials are going to be so radically different from their parents. Like, why would I not have a car at middle age? I'm still working for another 30 years, at least. If I didn't waste my twenties moving to a big city, living in a studio apartment, and ditching my car to ride the metro, why would I start now? > going to Costco as a single millennial is basically a hack, not the target customer at all So, admittedly my understanding of Costco might be out-of-date, but once upon a time the Wholesale Retailer's job was to sell you stuff at basically the same price they get it from the vendor, such that their margins are low or nonexistent--their revenue comes from the membership dues. They might have their own in-house brand so that they can get even better margins, but we'll ignore that for a sec. So let's say I'm not the target audience, as a single millenial who only goes to Costco on average to buy about five things. If Costco gets the same membership dues from me despite my using less of the store than full families, isn't that good for Costco?
- deleted 7y ago
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inferiorhuman 7y ago
I buy all my gas at Costco, and the savings alone from that usually equal or exceed the $60 membership dues by the end of the year, so everything else is pretty much gravy. That seems like an optimization for folks with cars…
- briandear 7y ago
  The United States is massive. Expecting that public transportation will replace cars to any significant scale is to reveal a lack of exposure to the vast majority of the country. Las Cruces, NM for instance — they aren’t going to build a subway and suddenly replace cars. Midland, Texas, Imperial, California — most people don’t live in a tight urban core. In France, outside of Paris — most people have, and need cars. The idea that millennials are all just dying to live in Manhattan is an out of touch myth. Cars as we know them will certainly change, but personal transportation will always be important — as will suburbs where your kid can grow up with an actual yard. Not everyone wants to live in a Hong Kong-style beehive.

tempsy 7y ago

yes, same. That doesn’t refute anything though when it comes to looking at how a massive generational shift will impact their business. It’s not incorrect to say this is a business that whose main target is upper middle class suburban families with cars and that in 10-20 years middle aged millennials will in aggregate likely have fewer reasons to go to Costco in the same rate as our parents for all the reasons mentioned above. going to Costco as a single millennial is basically a hack, not the target customer at all

AdmiralAsshat 7y ago
I guess I disagree with your premise that childless millenials are going to be so radically different from their parents. Like, why would I not have a car at middle age? I'm still working for another 30 years, at least. If I didn't waste my twenties moving to a big city, living in a studio apartment, and ditching my car to ride the metro, why would I start now? > going to Costco as a single millennial is basically a hack, not the target customer at all So, admittedly my understanding of Costco might be out-of-date, but once upon a time the Wholesale Retailer's job was to sell you stuff at basically the same price they get it from the vendor, such that their margins are low or nonexistent--their revenue comes from the membership dues. They might have their own in-house brand so that they can get even better margins, but we'll ignore that for a sec. So let's say I'm not the target audience, as a single millenial who only goes to Costco on average to buy about five things. If Costco gets the same membership dues from me despite my using less of the store than full families, isn't that good for Costco?
deleted 7y ago
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inferiorhuman 7y ago

I buy all my gas at Costco, and the savings alone from that usually equal or exceed the $60 membership dues by the end of the year, so everything else is pretty much gravy. That seems like an optimization for folks with cars…

briandear 7y ago
The United States is massive. Expecting that public transportation will replace cars to any significant scale is to reveal a lack of exposure to the vast majority of the country. Las Cruces, NM for instance — they aren’t going to build a subway and suddenly replace cars. Midland, Texas, Imperial, California — most people don’t live in a tight urban core. In France, outside of Paris — most people have, and need cars. The idea that millennials are all just dying to live in Manhattan is an out of touch myth. Cars as we know them will certainly change, but personal transportation will always be important — as will suburbs where your kid can grow up with an actual yard. Not everyone wants to live in a Hong Kong-style beehive.