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Let's Go Treasure Hunting
Iniobong Uyah & Alex Christidis
April 24, 2025
In partnership with
Many years ago, Steve Jobs made a statement that would crease brows. He said, “Customers don’t know what they want until you give it to them,” and his company has stuck by this philosophy ever since.
Today, you could say the situation has changed. So many customers know exactly what they want, and do share their opinions in the form of feedback. A good company should pay close attention to this feedback and adjust as needed, after all, the customer is always right, or are they?
One company, however, has remained adamant, refusing to change what most customers consider infuriating. Let me introduce you to Costco’s Treasure Hunt Model, why it works despite so many negative comments, and how it can be safely applied to other business types.
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Explaining the Treasure Hunt Retail Model |  |
Imagine walking into your favorite store and suddenly feeling you’re in the wrong place when actually, you’re not.
That was how Costco’s customers must have felt when the new Treasure Hunt strategy was implemented.
The strategy is simple, shuffle items around so that customers are introduced to new items they may like while looking around for what they came to buy from the store.
On Costco’s end, this is free advertising, but the customers who have to spend more time and sometimes more money than planned, are not always happy.
I say “always” because a few customers don’t mind the hunt, but not when you want to zap in and out of the store.
Simply put, Costco’s treasure hunt model:
“is not just about finding what you came for; it’s about discovering something you didn’t know you needed”
The Psychology Behind the Model |  |
Costco’s model is about discovery. The same psychological reward systems that drive people to scroll endlessly through social media or hunt for clearance racks in department stores.
Finding something unexpectedly good—like an organic snack pack you’ve never seen before or a major brand at a shocking discount—gives shoppers a hit of dopamine.
Over time, these positive reinforcements can make the inconvenience of navigating a chaotic layout feel worth it.
It’s a retail version of a treasure chest: you never know what you’ll find, and that unpredictability keeps you coming back.
We refer to the concept that customers come into Costco and they always expect to find something new and something exciting…The attitude is that if you see it, you have got to buy it because it may not be there next time….We purposely try to merchandise to that type of mind-set. There is always something new; there is always that treasure-hunt experience that is available in our buildings
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Pros✅ Encourages Exploration: ✅ Impulse Buying = Bigger Baskets: ✅ New Every Visit: ✅ Sense of Urgency: ✅ Builds Loyalty Among Deal-Seekers: | Cons❌ Inconvenient for Mission Shoppers: ❌ Harder to Build a Routine: ❌ Time-Consuming: ❌ May Alienate New Customers: ❌ Inventory Inconsistency: |
Despite the obvious Cons of the model, Costco’s share prices continue to rise, making it one of the most valued retailers in the market with more than 200 billion in sales.
The treasure hunt model may be a nuisance, but from a business perspective, it works. Here’s a full article including how you can implement the treasure hunt model in other business types.