Costco Made a Huge Mistake Just Like Walmart

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Costco has fewer items than Walmart and Target, yet it still has inventory and supply chain issues. The CFO mentioned late seasonal inventories on the fourth-quarter results call.

"First, there's some deep freeze from last year. My example is $150-$400 Christmas trees. They arrived after Christmas "saying "And they don't change style. You can see it at Costco."

While storing these objects for nine months had a cost, the CFO saw a big benefit.

"Even with holding costs and interest, they're cheaper than the ones we added this year. Perversely, that one didn't affect us much other than we don't like more inventory "saying

Costco's inventory rose 26%. That's a combination of supply chain troubles and the corporation altering its orders.

He added, "Some seasonal items arrived late." "We're increasing up inventory, especially large and heavy and e-com fulfilment. Last is early vacation. We brought something in."

The warehouse club's Christmas tree issue wasn't unusual, and it had other seasonal products to sell.

"We had a fantastic season, but there were delays in receiving air conditioning and fans," he remarked.

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