Costco Tops Consumer Reports Retailer Survey

A new survey by Consumer Reports rated both in-store and online shopping. The poll covered responses from over 26,000 people

Costco (NASDAQ: COST) ranked first, not surprising because of the reputation of the big box retailer with both consumers and investors.

Consumer Reports added more detail

Costco was the only chain to earn an outstanding grade for the overall quality of its merchandise, whether in stores or online. And it earned above-average scores for all 10 product categories rated, including electronic entertainment, jewelry, and sporting goods. Costco’s website did better than its walk-in stores on all counts except product quality (for which the two types tied) and earned top marks for layout, product value, and checkout.

However, in-store shoppers found a few chinks in Costco’s armor: The chain’s walk-in stores scored below average for selection, checkout (because of long lines), and service, and its shoppers were more likely than those elsewhere to complain about a lack of fitting rooms.

The complete ratings for all 10 chains, including in-store and online ratings for quality, value checkout, customer service and in-store and website layout are available at www.ConsumerReports.org or in the March issue of Consumer Reports starting February 7, 2012.

In addition to Costco, Kohl’s and JCPenney earned above average scores for the quality of their goods in all product categories for which we had sufficient responses. People were especially happy with the value and layout at Kohl’s stores.

Target boasts that its stores are easy to navigate, and Consumer Reports readers rated its layouts higher than for some other chains. Otherwise, the in-store shopping experience was just average, and Target’s website was not especially easy to use.

Macy’s stores rated better than average for product quality and layout. Macy’s was the only chain besides Costco to receive raves for its kitchenware and personal-care products. Readers also praised the chain’s clothing and home-decor selections.

Meijer scored better than some others for layout and the quality of kitchenware, personal-care items, and electronic entertainment, but scores for its clothing were lukewarm.

Sears’ overall scores for its walk-in stores and website were similar, but the chain’s online customer service rated lower than its walk-in service. Respondents said Sears, Costco, and Sam’s Club were better places to buy hardware.

Sam’s Club stores, both virtual and real, scored about the same as Sears overall. Readers who shopped at its walk-in stores complained of long checkout lines and limited selection but rated product quality and layout as better than average.

Walmart and Kmart walk-in stores scored much lower than those of other retailers. Walmart might be associated with low prices, but respondents said the product value was better at Costco and Kohl’s. Kmart was the only chain to score below average for value. Kmart also received low marks for selection, service, and checkout speed. Walmart was the only chain to earn below-average scores for the quality of its men’s, women’s, and children’s clothing. (Kmart received below-average scores for men’s and women’s clothing.) Walmart shoppers were especially likely to complain about long checkout lines and inadequate customer service.