What: Costco adds platinum bars to its product lineup, continuing its foray into the precious metals market after gold's popularity.

Why it is important: The addition of platinum bars to Costco's inventory reflects a broader trend of retailers innovating beyond their traditional offerings to attract customers and increase sales in a competitive market. Plus, one should remember that Harrods used to sell gold over the counter in the past.

Costco has expanded its precious metals offerings by introducing 1-ounce Swiss-made platinum bars, priced at USD 1,089.99. This addition follows the success of their gold bar sales, which launched in August 2023 and have been selling out within hours of restocking. The platinum bars are available exclusively online to Costco members, with some geographical restrictions.

The move into precious metals has proven lucrative for Costco, with analysts reporting sales of up to USD 200 million worth of gold bars per month. While gold prices have risen over 40% in the past year, platinum's value has been more volatile, increasing by 15% over the past 12 months but experiencing an 8% drop since early 2024.

Costco's expansion into precious metals aligns with broader retail trends of diversification and innovation. Major retailers are exploring various strategies to boost sales and customer loyalty, including expanding private label offerings and venturing into new product categories. By offering alternative investment options like precious metals, Costco is attracting a new segment of shoppers and potentially increasing customer engagement in a competitive retail landscape.

IADS Notes: Costco's expansion into selling platinum bars aligns with broader trends in retail innovation and diversification. As highlighted in the article "Walmart, Target And Nordstrom Boost Sales By Expanding Private Labels," major retailers are leveraging various strategies to boost sales and customer loyalty. While this article focuses on private label brands, it underscores the importance of retailers finding unique ways to differentiate themselves and offer value to customers. Costco's move into precious metals represents another approach to this trend, offering customers alternative investment options and potentially attracting a new segment of shoppers. This strategy, like the expansion of private labels, aims to increase customer engagement and drive sales by providing products that meet evolving consumer demands and preferences.

Costco goes for gold