Costco has become an unlikely $7 billion fast-fashion destination — and other retailers should take note

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Among mass toilet papers and cereal tops, Costco members are increasingly flocking to fashion retailers for amazing reasons.

According to the Washington Post, Costco is not an obvious destination for wearing stylish clothes, but has earned more than $ 7 billion in warehouse and shoe sales. Over the past four years, sales in this category have increased by 9{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} annually. . Most of Costco's 800 stores are large warehouses across the United States that lack products such as fitting rooms, but shoppers are making room in their carts for increasingly discounted North Face jackets, Jessica Simpson jeans, and Calvin Klein blouses.

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A Costco representative declined to comment on Business Insider's $ 7 billion in sales.

"Costco has quietly become a clothing destination," said Simeon Siegel, Instinet's retail analyst. "This is echoing shoppers and winning the brand at the expense of department stores."

Most impressively, Costco's apparel sales, including products from the Kirkland collection, surpass some traditional retail outlets such as Old Navy, Neiman Marcus, and Ralph Lauren. Costco's success in the fashion sector is due in part to its 88 million members who pay a commission of over $ 60 per year for access to discounted bulk products.

Adding the fact that fashion companies are looking for a practical way to unload excess inventory, and thanks to their costly customer base, they are willing to do so in seemingly glamorous places like Costco and get recipes for success.

However, Costco may have established itself as a less likely fashion source, but unless retailers go to court for millennials, success can be a dramatic growth. together Elizabeth Segran, a retail analyst and staff writer for Fast Company,ostco's customer base has appeared to be older and Gen X and Baby Boomer members are experiencing a rapid fad, but many millennials are looking for a more sustainable alternative.

"Startups like Everlane and Allbirds, popular with millennials, are rejecting fast fashion by creating classic, timeless styles with a longer shelf life." "They're showing how the future of fashion looks, and if Costco doesn't keep up, the boomer generation, now between 55 and 75, is too old to shop anymore, and the fashion boom can end."

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