Costco Pays Dearly for Shopping SNAFU

Website crashed on Thanksgiving, costing the company an estimated $11M in sales
By Newser Editors,  Newser Staff
Posted Nov 29, 2019 2:19 PM CST

(Newser) – Black Friday 2019 is winding down, and if there's a quote that sums up the gist of the day's coverage, it might be this one in the Wall Street Journal. "The mad rush isn’t here anymore," says Reila Prose of the San Antonio area while shopping at Rolling Oaks Mall. "The mall has dwindled. You can get everything online." Still, the day remains a significant one for retailers, even if the "frenzy" of years past isn't present in the brick-and-mortar side of things, per Reuters. Related coverage:

  • Ouch: Costco learned the hard way how important it is for things to go right this time of year. The chain's website crashed for more than 16 hours on Thanksgiving, and Business Insider figures it cost the retailer somewhere in the neighborhood of $11.5 million in sales.
  • Numbers: If foot traffic at stores is down, this will help: Online sales on Thanksgiving rose 15% over last year to $4.2 billion, according to Adobe Analytics. The online estimate for Black Friday is $7.4 billion, up a solid 19%. "This has been a really good start," Rod Sides, vice chairman and leader of retail and distribution practice at Deloitte LLP, tells the AP.

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