Analysis: Are Costco photo lab closures an indicator of a wider trend?

Mass retailer participation in a category is considered a key indicator of the overall vitality of the category. Mass retailers have access to the best analytics, and make data-driven decisions. When a high-profile retailer decides to change space allocation or even exit a category, it sends ripples across the industry. For example, Best Buy recently announced the cessation of in-store CD sales, prompting speculation about the future of physical audio media in the age of streaming.

Similarly, Costco Wholesale Clubs made the industry grapevine buzz recently with announcements of the closure several in-warehouse photo departments in Honolulu and in Massachusetts. Club members were informed by email of the photo department closures. In both situations, dates in April were announced for last days of in-store service.

According to HawaiiNewsNow, “The popular wholesale chain store said in a letter to members that the advent of camera phones and social media has created a steep decline in photo printing requests — despite an overall increase in picture taking.

” ‘After careful consideration, we have determined that the print volume at the Iwilei, HI, Costco no longer requires on-site photo printing,” said General Manager Jaime Havron in the letter.”