Costco’s Holiday Sales Soar with Supersized TVs
Costco Wholesale Corp. has reported a successful holiday season, with large-screen televisions emerging as a standout performer among high-ticket items. The retail giant’s strategy of appealing to its more affluent members through premium products has paid off, particularly in the consumer electronics sector.
Costco CFO Gary Millerchip highlighted the popularity of large TVs during the holiday period, stating, “We saw strong sales in big-screen TVs, particularly in the 98- and 100-inch range.” The company’s success extended beyond televisions, with Stern pinball machines and gaming computers also proving to be hot sellers. This aligns with Costco’s ongoing strategy of offering new and exciting items at competitive prices.
The retailer’s product range includes 98- and 100-inch TVs from brands such as TCL and Samsung, with prices ranging from $5,000 to $8,000. For instance, a TCL 98-inch Class XL Collection 4K QLED TV is priced at $5,499.99, while a Samsung 98-inch Class QN90C Neo QLED 4K Smart TV carries a price tag of $7,999.99.
These supersized TVs have not only caught the attention of shoppers but have also gone viral on social media platforms. TikTok users have been sharing unboxing videos and reviews of the massive screens, with some videos garnering millions of views. The TikTok account “Costco Wonders” posted a video questioning the value of the deal, which quickly gained traction among viewers.
Costco’s chairman Hamilton “Tony” James shed light on the shopping habits of the company’s more affluent members, noting their tendency to purchase higher-end items. This trend is not limited to electronics; Costco has previously sold luxury items such as Rolex watches and high-end diamond rings. The company has even hosted unique sales events, including a Porsche sale in Seattle.
Despite the success in big-ticket items, Costco faced some challenges in its fiscal second quarter. While store visits increased, the company missed profit expectations, leading to a dip in stock performance. Increased supply chain costs due to additional inventory and tariffs have impacted the bottom line.
CEO Ron Vachris addressed these challenges, stating, “We’re working diligently to mitigate the impact of tariffs and minimize price increases for our members.” The company remains focused on balancing its value proposition with the need to navigate global economic pressures.
As Costco continues to cater to a diverse customer base, its success with high-end electronics and luxury goods demonstrates the retailer’s ability to adapt to changing consumer preferences while maintaining its core value-driven approach.
