With just 572 stores open Costco has found top line growth and bottom line profits in grocerant ready-to-eat and ready-to-heat fresh prepared food. Tim Rose, Costco’s Senior Vice President of Food and Sundries foresees fresh food sales more than doubling in the next ten years.
In a recent presentation Rose stated “Today fresh foods accounts for about $9.5 billion in sales and more than $1 billion in profit. In the next 10 years the company foresees $26 billion in sales, $2.0 billion net margin…”
Costco has utilized product sampling in each store for fresh prepared food products which has increased trial. Without doubt Costco will increase innovation in menu items, packaging size and continue to improve interactive customer focused in store presentation. Grocerant fresh prepared food drives both loyalty and an increase customer frequency. Success does leave clues and Costco has picked up many in the fresh food arena.
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