What does Costco do with its extra merchandise?

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Posted 1/5/2009 by qwerky in NSBR Board
 

qwerky
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Posted: 1/5/2009 12:14:53 PM
You never see anything on clearance at Costco.

GoinNuts
aka: Fed_Up

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Posted: 1/5/2009 12:20:09 PM
I don't know about Costco, but the manager at our Sam's told us they throw things in the garbage after a certain length of time. They do put things on clearance for a bit, but if it doesn't sell at their 'lowest acceptable price' after so long, in the dumpster it goes.

I think that's nuts, but there must be a tax break in there somewhere to make it better to do that than sell it for a few dollars less than they'd *prefer* to.

Lisa


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Amy G
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Posted: 1/5/2009 12:20:54 PM
actually they do have clearance at costco. If the price sign has an asterisk on it, then it is clearancing out and they won't be carrying it any longer. They usually don't mark them down too much, but I have found a couple really good deals. I think when people see it's on clearance they snatch it up.

qwerky
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Posted: 1/5/2009 12:23:02 PM
I was there on Christmas Eve and they still had so much Christmas stuff. I know they couldn't have sold it! I really hope that it didn't all get dumped.

austyn
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Posted: 1/5/2009 12:23:40 PM

I think that's nuts, but there must be a tax break in there somewhere to make it better to do that than sell it for a few dollars less than they'd *prefer* to.



yep - it's a write off. It would be nice if they donated it, but it's not as good of a write off so most places don't.

I know K-Mart and Thom McCann (sp - shoe store) both destroy the stuff before they toss it. Cut it up, put slice holes in the shoes so that the bums won't steal them from the dumpster (seriously...what do they care? if they put it in the dumpster then they threw it out - they did not "donate" it - at least not willingly). I learned that from a friend of DH's who worked at both as a teenager. He quit both jobs when he got put on the distruction duty because he wanted to take it to his church.




CADoodlebug
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Posted: 1/5/2009 12:31:53 PM
My son works in donations for a thrift store
run by an abused women's shelter and they pick
up stuff all the time from the local Costco.
Each year Costco will decide which nonprofits
they will donate goods to that year.


Joy

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Leanalynn
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Posted: 1/5/2009 1:05:22 PM
They sell pallet-fulls to liquidation centers as well. We used to have one near us, and they had costo/kirkland items all the time. lots of items with damaged packages ended up there, games, electronics, etc.

It went out of business unfortunately. Their prices were too high, and it was a weird location.


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ksantoni
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Posted: 1/5/2009 1:09:39 PM
Hey qwerky...
I have work at Costco for many years and we do mark product down in price. If a sign has an * it is pending delete from our system. If the price ends in .97 it is at a mark down price. We almost always sell thru an item, but if not them the disposition on merchandise is worked out between our buyers and the vendor/manufacture. I do not believe we get a "tax" break for throwing away merchandise. Most item are either return to the vender, sold to a salvage company or donate. Any item just throw in the dumpster go directly against our botton line profit.

eebud
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Posted: 1/5/2009 1:11:25 PM

actually they do have clearance at costco. If the price sign has an asterisk on it, then it is clearancing out and they won't be carrying it any longer. They usually don't mark them down too much, but I have found a couple really good deals. I think when people see it's on clearance they snatch it up.

Wanted to toss this out there for the Sams shoppers. All the Sams stores I have been in do have a Clearance section. But, along with this, if you see a price that ends in 1 (ex. $4.51), that means that the item is being clearanced and they will not be restocking it. Sometimes it is something being discontinued. Other times, there is a new and improved and they need to get rid of the old. You will find these prices all around the store, not necessarily in the Clearance section.





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dolansd&s
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Posted: 1/5/2009 1:26:54 PM
In No. VA there is a resale store that they send returns to and probably the last of anything that doesn't sell.

Obviously, the store buys it from them....so the price is a bit lower.


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fanniemae
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Posted: 1/5/2009 1:31:35 PM

I think that's nuts, but there must be a tax break in there somewhere to make it better to do that than sell it for a few dollars less than they'd *prefer* to.


yep - it's a write off. It would be nice if they donated it, but it's not as good of a write off so most places don't.


That's not true. Their "write off" is the cost they paid for the item. There is no additional deduction if they donate the item. They still only deduct the cost, same as if they threw it in the garbage can.







sunluver
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Posted: 1/5/2009 1:34:08 PM
We actually have a store here that sells Costco items at a discount. It is always jammed packed with merchandise. Sometimes you can find some really good deals, and other times, not so much. Some of the stuff looks like they are returns and not in very good shape. Need to be a careful shopper if you shop there. They even print coupons in the local newspaper.
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