As of late, Costco has significantly outperformed its rivals Wal-Mart and Target. While Wal-Mart and Target have had meek sales growth since 2010, Costco has been able increase its sales by 127 percent.
What's the secret? An uncompromised focus on driving sales. Where Target and Wal-Mart dump gobs of cash into marketing, Costco does not spend a dime but instead uses the savings to offer lower prices. Where Target and Wal-Mart offer an intimidating selection of each product, Costco offers a select few, allowing them to discount deeper. Where Target and Wal-Mart constantly scheme on creative ways to reduce payroll expenses, Costco pays employees competitively to enhance customer relations and motivate more sales. This dedication to sales volumes has paid off handsomely for Costco; in the words of Goldman Sachs, the company believes as long as their sales are strong, “everything else will take care of itself.”