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HomeB2C ecommerceCostco reports soaring e-commerce orders, but mentions stay-at-home orders hurt sales

Costco reports soaring e-commerce orders, but mentions stay-at-home orders hurt sales

Costco

We have already seen how the world has reacted to the Coronavirus pandemic and we also saw that there was a mad rush and panic buying in stores all over the world because there were stay-at-home orders given to people. This is also the reason why we had videos going viral of empty shelves and people fighting with each other to get that last roll of toilet paper that they can get. However, things are different when we take into account the fact that companies are reporting a slump in the sale despite those empty shelves.

If you were also fooled by those videos, here is what Costco has just reported. Well, we do know that the shelves got empty because people started buying everything they could get. However, it is also a fact that the condition remained such for only a few days and then things got back to worse than normal. The stores that would see 100s of customers coming in every day were remaining empty. Costco also says that they were hit hard due to the stay-at-home orders that were imposed by governors in the US.

Costco’s VP said that “Stay-at-home orders, social-distancing restrictions and some mandatory closures led to decreased traffic and sales in our warehouses,” He mentioned that “Limited service in travel and our food courts, closures of most of our optical, hearing-aid and photo departments, and lower volume and price deflation in our gasoline business negatively impacted our April sales by an estimated 12 percentage points, of which approximately 70% is related to gasoline.”

At the same time, Costco did mention that its e-commerce orders were seeing a huge hit since most people were refraining from coming out and ordering online instead to get the items delivered at their doorsteps. The company revealed it saw an “86%” growth in online sales which is “meaningful”.

Sonali Minocha
Author: Sonali Minocha

Passionate about Innovation and Technology. I love to contribute to high impact projects/ products. I have co-created/contributed to technology solutions touching 100 million ++ humans. I am also fond of e-commerce & PIM solutions. As editor of eCommerceNext, I am bringing news, events, opinions, experts, reviews from the world of e-commerce and PIM Besides technology and innovation, I am usually involved in setting up and running complex operations and human capital systems. I have been grateful to be acknowledged by getting “Great Places to Work – Top 100”, “Great Places to Work – Top 50”, “Great Place to Work – Top 5” awards for my company. I am a people and relationship person and bring in a balance of empathy and realistic solutions. I thrive on building processes and building control systems. I led the team that achieved CMMI Level 3. I have managed large teams and in-turn managed projects worth 15-20 Million (Annually) Want me to cover an interesting story around eCommerce or PIM? Reach me on [email protected]

Author

Passionate about Innovation and Technology. I love to contribute to high impact projects/ products. I have co-created/contributed to technology solutions touching 100 million ++ humans. I am also fond of e-commerce & PIM solutions. As editor of eCommerceNext, I am bringing news, events, opinions, experts, reviews from the world of e-commerce and PIMBesides technology and innovation, I am usually involved in setting up and running complex operations and human capital systems. I have been grateful to be acknowledged by getting “Great Places to Work – Top 100”, “Great Places to Work – Top 50”, “Great Place to Work – Top 5” awards for my company.I am a people and relationship person and bring in a balance of empathy and realistic solutions. I thrive on building processes and building control systems. I led the team that achieved CMMI Level 3. I have managed large teams and in-turn managed projects worth 15-20 Million (Annually)Want me to cover an interesting story around eCommerce or PIM? Reach me on [email protected]