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Costco does however include ancillary businesses to increase member alternatives. The loss of sales from customers who refuse to purchase large amounts is considered “Intelligent loss of sales.” Treasure-Hunt Merchandising consists of a constantly changing selection of 1,000 luxury items on the floor enticing shoppers to spend more than they might otherwise by offering irresistible deals. To make Treasure-Hunt shopping profitable, Costco’s buyers purchase these items from the grey market such as wholesalers, or distressed retailers rather than manufacturers.
How good is the strategy?
Costco’s strategy is very good...
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