Prepare for your Costco retail interview

Membership economics, warehouse operations, and merchandising cases calibrated to Costco's focus on value, member loyalty, and operational simplicity.

Socratify AI

The Interview

What Costco is looking for

Membership Interview

Membership Economics & Retention

01Renewal Rate Analysis

02Member Segmentation

03Upgrade Strategy

04Lifetime Value

Merchandising Interview

Buying & Merchandising

01SKU Rationalization

02Kirkland Strategy

03Treasure Hunt Merchandising

04Vendor Negotiation

Costco interviews focus on membership model economics and renewal drivers//SKU curation and the treasure hunt model are unique interview themes//Operational simplicity and employee value proposition are core values tested

Practice Library

Costco exercises

Ready to ace your Costco retail interview?

Prepare for your Costco retail interview

Membership economics, warehouse operations, and merchandising cases calibrated to Costco's focus on value, member loyalty, and operational simplicity.

Socratify AI

The Interview

What Costco is looking for

Membership Interview

Membership Economics & Retention

01Renewal Rate Analysis

02Member Segmentation

03Upgrade Strategy

04Lifetime Value

Merchandising Interview

Buying & Merchandising

01SKU Rationalization

02Kirkland Strategy

03Treasure Hunt Merchandising

04Vendor Negotiation

How It Works

Master Costco Retail Interviews

Membership and merchandising cases scored on economic reasoning, operational thinking, and value orientation. · Click to expand

1Your Retail Goals

Merchandising Strategy

Practitioner

Store Performance

Practitioner

2Retail Case Prep

Costco's membership renewal rate is 93% in the US but only 88% internationally....

CASE INTERVIEWHard

Costco

3Frameworks

Framework

Are unit economics fixable within current fulfillment model?

Last-mile delivery cost the primary driver?

Last-mile delivery: $8.70/order vs. BOPIS labor: $2.40/order

Avg delivery distance: 7.2 miles, 23% of orders under 3 miles

In-store picking efficiency improvable?

Pick rate: 42 items/hour vs. dark store benchmark: 120 items/hour

Substitution rate: 18%, each sub adds $1.20 in labor + customer friction

Can channel mix be shifted toward profitable fulfillment modes?

BOPIS/curbside adoption expandable?

BOPIS share: 28% of digital orders, margin-positive at +1.4%

BOPIS attach rate (add-on purchase): 34%, avg $18.50 incremental basket

Minimum order thresholds viable for delivery?

Avg digital basket: $47, breakeven at $65 for same-day delivery

Competitor free delivery threshold: $35 (Amazon), $50 (Walmart+)

Can customer behavior be shaped to improve profitability?

Loyalty program driving profitable behavior?

Loyalty members: 62% of digital orders, 14% higher basket size

Loyalty BOPIS adoption: 38% vs. non-loyalty: 19%

Return rates eroding digital margin?

Digital return rate: 22% vs. in-store: 8%, cost per return: $6.40

In-store returns of digital orders drive 41% attach rate

4Feedback

Merchandising Strategy

Distinctive

Store Performance

Strong

Supply Chain Optimization

Meeting Bar

Customer Insights

Strong

Repeat

Practice Library

Costco exercises

Costco membership renewal rates have dipped from 92.7% to 90.4% among under-35 members....

LEARNMedium

Retail · Membership RetentionCostco

Costco is considering adding a third membership tier between Gold Star ($65) and...

CASE INTERVIEWHard

Retail · Pricing & Tier StrategyCostco

Costco carries ~3,800 SKUs vs. Walmart's ~120,000. A category buyer wants to add 200...

LEARNMedium

Retail · SKU CurationCostco

Tell me about a time you had to say no to a request that seemed reasonable on the...

BEHAVIORALMedium

Behavioral · Values AlignmentCostco

Describe a time you simplified a complex process. What did you eliminate and what was...

BEHAVIORALMedium

Behavioral · Operational SimplicityCostco