Another lens to apply to the on-demand market: Future of Retail.
Costco’s store-first strategy has led many analysts to refer to it as “Amazon-proof.” But there are dark clouds on the horizon. Many of its club members are also Amazon Prime members. Up until now, this hasn’t hurt the company, but that’s because Costco’s grocery offerings — the main driver of store trips — have been superior in price and, with an ever-growing assortment of organic and fair trade produce, at least equal in quality, too. But lower prices and special Prime deals — both online and at Whole Foods stores — could draw customers away from Costco. Improving online ordering and delivery of Whole Foods products, which many predict will happen, could also cut deeper into Costco’s sales.