American supermarket chain Costco publishes a member magazine – and with great success. Every month, over 15.4 million copies of Costco Connection are mailed out. The magazine is a key pillar in the company’s success story.
At the Costco headquarters in Issaquah, Washington, a well-oiled team believes in the impact of print in customer communication. Besides over 15 million magazines sent to members, another 300,000 copies are also distributed in the supermarkets.
Number 3 in the US
This makes
Costco Connection the third largest magazine in the country. As the
New York Times reports, it reaches more readers in the US than the magazines
Better Homes & Gardens,
The New Yorker and
The Atlantic combined. An annual membership costs 65 dollars, including
Costco Connection and discounts that can be redeemed when visiting a store.
With its enormous reach, the magazine is a relevant, interesting medium that addresses a price-sensitive target audience. After all, nearly one-third of all consumers in the US shop at Costco. This has been recognized not only by the advertising industry, but also by numerous celebrities. Oprah Winfrey, Tom Hanks and Bruce Springsteen have all been featured on the cover, sharing their personal stories in the highlights – of course not without referring to their connection with and shopping experiences at Costco.
Robust print runs and readership
“The fact that over 90 percent of members re-up from one year to the next shows how well the magazine is accepted by the market,” states Peter Gruening, Costco’s senior vice president for membership, marketing and member service centers, to the
New York Times. Readers rate the magazine as informational and entertaining. Their trust in the editorial content is estimated to be well over 90 percent.
A customer magazine with such a large print run serves as an anachronism in our digital world. But it seems that it is possible to play on the right topics without sophisticated algorithms to reach readers, evidenced by the magazine’s robust print runs and readership.
Boosting customer loyalty
The Costco Connection debuted in magazine form in 1997. It dropped the “The” during a 2018 redesign, but has always stuck to its original goals – to strengthen customer loyalty and keep shoppers returning to the supermarkets. The magazine plays an important role in reaching these goals.
The fact that over 90 percent of members re-up from one year to the next has perhaps more to do with the discount prices than with the magazine itself. But Peter Gruening believes that the magazine also contributes to boosting customer loyalty. Customers can also contact the company directly through the magazine. Feedback is incorporated to optimize the offering and the magazine – market research at its finest!
Despite the trend towards digitalization in retail advertising, at Costco they have no plans to discontinue the magazine, Gruening assures. “But we would like to expand digital and grow that circulation to reach more members online as well.” He does assure that the focus is currently on the printed form. And nothing will change about that any time soon.
Facts about Costco
- Established: 1983
- Headquarters: Issaquah, USA
- Employees worldwide, 2024: 333,000
- Sales worldwide, 2023/24: 222.7 billion dollars