US-based Costco has inched ahead of Target and Kmart on customer satisfaction to lead research firm Roy Morgan’s latest discount department store satisfaction report.

The leader posted a score of 88.6 per cent in July, a 1.7 per cent increase over the same period last year, putting it slightly ahead of Target and Kmart at 88.5 per cent and 88.4 per cent respectively.

Costco won Roy Morgan’s annual discount department store customer satisfaction award last year, though the top spot has been passed between Costco, Target and Kmart several times over the course of 2018.

“Costco’s victory in July comes as the American retailer has unveiled plans for an ambitious expansion with a huge new distribution centre set to open in Sydney’s west next year signaling an expanded online retail presence,” Roy Morgan chief executive Michele Levine said.

“The focus on customers resulting in high customer satisfaction ratings of leading discount department stores show that Costco, Kmart, Target, Big W and others are taking the threat posed by online retailer Amazon seriously.”

Levine noted that maintaining customer satisfaction is key, as online retailers and department stores such as Myer and David Jones, which are eager to reinvent themselves and attract a wider customer base, increasingly target the discount department store space.

“The success of German discount supermarket chain Aldi provides a stunning example of how building a relationship for trust and dependability is solid bedrock upon which to build a successful business,” Levine said.

“Aldi has constantly been rated as one of Australia’s most trusted brands by the Roy Morgan Net Trust Survey… In fact, as our most recent NTS results show Aldi is now the most trusted brand in Australia – across all industries.”

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