Costco Is Making A Huge Mistake If It Replaces Its Samplers With Kiosks
In March 2023, a popular Costco fan account posted two images on Instagram featuring a "free sample" kiosk at a Costco location in Washington state. The kiosk pictured instructed shoppers to only take a single sample portion each, which in this case appeared to be pre-packaged fruit snacks accompanied by a price tag for the actual product, in case Costco shoppers wanted to buy it to bring home. The post both explained that a lack of labor was reportedly behind the decision to try out the kiosk and speculated this type of sampler could become standard for all Costco stores in the near future, sparking a bit of viral controversy.
Reactions in the comments for the Instagram post were mixed, as were those posted on other social media platforms like Reddit. Some applauded the concept as inventive, cost-effective, and perhaps even time-saving. More than one person admitted they were looking forward to taking more samples than they could if a real-life vendor was conservatively handing them out.
On the whole, though, folks online responded with criticism. If the chain eventually automates the distribution of its samples, it could cause all sorts of logistical problems, decrease the quality of Costco's samples, and ultimately make the issue of labor shortages worse in the long run. To be fair, Costco hasn't announced any plans to widely implement this system yet — and hopefully, it'll remain that way. Even so, it's important that consumers voice their concerns so the business is aware of the potential consequences, should they take this approach going forward.
Sample kiosks would harm the customer experience
Costco's main appeal for shoppers is obviously its product deals, a frugality the company famously provides by way of being a wholesaler, and through its private label Kirkland, which prioritizes affordability over recognizable brands. At first glance, it's tempting to think Costco saving money on labor could also be a good thing for shoppers, but Costco's primary attraction for consumers isn't only how budget-friendly it is. It's also the experience it provides, similar to what Ikea is for furniture. It's a joy to wander the aisles of a labyrinthian warehouse, crossing items off your checklist, inspecting the variety of products, and dining at the food court. The cherry on top? Receiving freshly prepared samples from friendly vendors.
Pre-packaged stuff simply can't compare to the quality of recently made food. Besides, who wouldn't want their snacks served by a smiling, personable sampler? Not only would we lose those benefits with kiosks, but we'd also encounter new problems.
In the short term, there'd inevitably be confusion about this change, with no guarantee that an employee would be nearby to explain it. People might wonder where vendors went, why there's a price tag if the samples are free, and how the honor system actually works. All of this could cause cart traffic jams as people stop to stare — already a notorious issue at Costco — with no worker present to keep them moving. (Speaking of honor systems, what's to stop troublemakers from taking more than one sample and leaving latecomers empty-handed?) In short, shoppers will suffer, and so will Costco.
Automation won't solve Costco's staffing problems
It's a bit strange that Costco would even (hypothetically) consider this move. The leading theory, as mentioned, is that Costco doesn't have enough available workers to oversee sample stations. After all, the U.S. has experienced a labor shortage for at least a couple of years, and food retail, in particular, has been hit hard by this said shortage.
Still, it's important to note the sample vendors at Costco have traditionally been contractors provided by third parties. Keeping this in mind, it's possible the Costco kiosk in Washington state was just one instance of a broken vendor contract, forcing Costco to find a temporary solution. If so, fine — but the fact the kiosk existed at all suggests Costco has been preparing for this anyway.
If Costco thinks automation will solve its worker shortage, it's mistaken. It's obvious this change would undermine the value of a Costco membership. The fallout is inevitable, as it could lead to members leaving, which could in turn lead to fewer profits and fewer funds to pay remaining employees, and so on. It's a slippery slope. Showing your workers they're replaceable doesn't help employee retention — it hurts it. In this case, staff could (or will) leave over job security. Plus, even if Costco does depend on third parties for staffing, it's not like Costco couldn't switch to hiring vendors itself. It's a very profitable company, and it's surely got the funds needed to employ them.
Costco, please do yourself, your members, and your employees a favor. Keep the human samplers around.