News and Trends

 Namnews,  6th April 2023 Costco’s sales growth weakened again in March as consumers made cutbacks amid persistently high inflation. Having recorded double-digit increases during most of the pandemic, the warehouse club operator’s total monthly comparable sales rose only 2.6% after excluding the impacts of changes in petrol prices and foreign exchange. Comparable sales in its 585 US outlets edged up 0.9% – the smallest advance since April 2020 – shortly after the lockdowns at the start of the Covid crisis. There was better performance in Costco’s international markets, with its 107 stores in Canada seeing a 7.4% rise. Meanwhile, its 157 warehouses across Europe and Asia (including 29 in the UK) saw sales increase by 7.6%. However, the group’s e-commerce unit recorded an 11.6% decline as consumers reined in their spending and returned to shopping in physical stores. Analysts noted that the tepid performance underscored the risk that Costco’s long sales boom is finally petering ...

  Namnews, 9th December 2022 Having prospered during the last couple of years, latest figures from Costco suggest the warehouse club retailer is starting to feel the effects of surging inflation and weakening consumer confidence. During its first quarter to 20 November 2022, Costco’s net sales still increased a healthy 8.1% to $53.44bn. However, this missed analysts’ estimates of $54.64bn and growth of 15.2% in the previous quarter. Excluding the impacts of changes in petrol prices and foreign exchange, comparable sales in its 583 outlets in the US rose 6.5%. The 107 stores in Canada saw a 8.3% rise, whilst its 157 overseas warehouses (including 29 in the UK) saw sales increase by 9.1%. Meanwhile, Costco’s merchandise costs rose 8.7% to $47.77bn as it grappled with higher freight and labour costs. However, pre-tax profits still grew, up 4.4% to $1.77bn. Other leading US retailers such as Target and Dollar recently said that stubbornly high inflation was impacting consumer spending ...

  Namnews, 23rd September 2022 Costco’s fourth-quarter results topped Wall Street expectations, helped by strong demand for its fresh food and fuel offerings despite rising inflation in the various countries in which it operates its warehouse outlets. The retailer’s net sales (excl. membership fees) rose 15.2% to $70.76bn over the 16 weeks ended 28 August after benefitting from strong spending by its more affluent consumers that pay to be members. Excluding the impacts from changes in petrol prices and foreign exchange, comparable sales in its 578 outlets in the US rose 9.6%. The 107 stores in Canada saw a 13.7% rise, whilst its 153 overseas warehouses (including 29 in the UK) saw sales increase by 11.3%. Telsey Advisory Group analyst Joseph Feldman said that in the current environment, consumers are looking to save money – including the better-off ones, which Costco caters to. “That bodes well, since they sell a lot of food and consumables, and they help people save money,” he sai...

Namnews, 30th June 2022 Recently filed accounts for Costco’s warehouses and e-commerce operation in the UK confirm the business benefited from the surge in demand for groceries during the pandemic. Figures covering the 52 weeks to 29 August 2021 show the US giant’s British subsidiary saw turnover climb 14.4% to £3.58bn, having risen 15.7% the year before. Operating profit jumped 149.7% to £84.4m after gross margin rose from 3.5% to 4.5%. Costco said that it had benefited from economies of scale as volumes rose, especially in e-commerce. The company stated that growth in its warehouses was strong across nearly all major categories, with footfall created by raised demand for groceries, fresh food and drink, driving sales performance in other departments. Costco noted that an increase in basket size more than offset a slight reduction in shopper frequency during the pandemic. It also said membership sign-ups had remained strong. However, it highlighted that the business had faced “signifi...

Namnews, 4th March 2022 Costco has reported quarterly revenue and profit ahead of analysts’ estimates as consumers returning to its warehouses bought more groceries and high margin items such as jewellery and home furnishings. The US firm’s total net sales for its quarter to 13 February increased 16.1% to $50.94bn, continuing a strong run that lasted throughout the pandemic. Comparable sales, excluding the impact of fuel and currency fluctuations, climbed 11.1%, driven by growth of 11.3% in the US and 12.4% in Canada. Sales in its international division, which operates 151 warehouses around the world, were up 9.0%. Meanwhile, global e-commerce sales climbed 12.6%. Group net income rose from $0.95bn to $1.30bn as costs related to Covid-19 eased. Costco has also benefitted from strong demand for high-margin items in recent months as consumers socialised and travelled more as restrictions in most key markets came to an end. However, the company said it was still pressured by logistics del...

Namnews, 3rd February 2022 Costco continued its strong run in January with double-digit sales growth as its warehouses and online store remained popular during the pandemic. Over the four weeks to 30 January 2022, the group’s total net sales rose 15.5% to $15.76bn with comparable sales, excluding the impact of fuel and currency fluctuations, climbing 10.8%. In its 572 US warehouses, comparable sales rose 9.5%, whilst the 105-strong chain in Canada recorded a 13.9% rise. Sales in its international division, which operates 151 warehouses around the world, surged up 14.6%. Meanwhile, global e-commerce sales slowed to 9%, from 17.8% the previous month. At the end of last year, Costco warned of availability and inflation issues caused by the supply chain crunch that is affecting retailers around the world. However, footfall to its sites remains strong with continued robust sales of food complemented by a return in demand for general merchandise and luxury items.

Namnews, 7th January 2022 Costco ended 2021 on a high with double-digit sales growth in December as its warehouses and online store continued to prove popular during the pandemic. Over the five weeks to 2 January 2022, the group’s total net sales rose 16.2% to $22.24bn with comparable sales, excluding the impact of fuel and currency fluctuations, jumping 11.5%. In its 572 US warehouses, comparable sales also rose 11.5%, whilst the 105-strong chain in Canada recorded a 13.6% rise. Sales in its international division, which operates 151 warehouses around the world, were up 9.6%. Meanwhile, global e-commerce sales growth accelerated to 17.8%, from 11.7% the previous month. “Our comp traffic, or frequency, for December was up 9.8% worldwide and 8.5% in the US,” said David Sherwood, assistant VP of finance and investor relations at Costco. “Worldwide, the average transaction for December was up 4.3%, which included the positive impacts from gasoline inflation and FX.” In the US, regions and...

Namnews, 9th July 2021 Global warehouse club giant Costco has posted another set of robust sales figures despite lapping big increases at the start of the pandemic a year ago. With shopper numbers increasing as restrictions eased in key markets, the retailer’s total sales jumped 16.9% to $18.92bn over the five weeks ended 4 July. However, comparable sales growth (excl. the impact of fuel and currency fluctuations) slowed to 7.9% compared to the 14.7% rise the month before. Costco did highlight that June month had one fewer shopping day versus last year, due to the calendar shift of Memorial Day. This negatively impacted sales by approximately one and one-half to two percent. Comparable sales increased by 7.8% in its US business and were up 8.9% in Canada. Sales in its international division climbed 6.8%, whilst growth in the group’s e-commerce unit slowed again to 18% having almost doubling during the peak of the pandemic. Costco currently operates 810 warehouses, including 559 in the ...

Namnews, 6th May 2021 Global warehouse club giant Costco continued its strong run last month despite lapping the period of exceptional demand at the start of the pandemic. Over the 4 weeks to 2 May, the retailer’s total sales jumped 33.5% to $15.21bn with comparable sales (excl. the impact of fuel and currency fluctuations) up 24.2%. This compares to respective growth figures of 17.6% and 11.1% the previous month. Costco did highlight that the April retail month had one additional shopping day versus last year, due to the calendar shift of Easter. This is said to have positively impacted total and comparable sales by approximately two and one-half per cent. Comparable sales increased by 24.9% in its US business and were up 23.8% in Canada. Sales in its international division climbed 20.3%, although growth in the group’s e-commerce unit slowed to 17.3% after almost doubling during the peak of the pandemic. The retailer has proved popular during the crisis as consumers bulk bought grocer...

Namnews, 12th April 2021 A year on from the start of the pandemic, Costco has continued its strong run despite demand easing in some of its food categories. Over the 5 weeks to 4 April, the warehouse club retailer saw its total sales climb 17.6% to $18.21bn with comparable sales (excl. the impact of fuel and currency fluctuations) up 11.1%. Comparable sales increased by 11.3% in its US business and were up 13% in Canada. However, sales in its international division slowed to 7.7%. E-commerce sales rose 54.5% as Costco continued to benefit from the shift towards online shopping during the crisis. The retailer has proved popular during the pandemic as consumers bulk bought groceries and favoured shopping in spacious warehouses over more crowded supermarket stores. Despite the Covid crisis and restrictions starting to ease in some countries, Costco revealed that shopper traffic had increased last month. However, as the market annualises against a record-breaking period in early 2020 when ...

 Namnews,  25th March 2021 Costco looks set to continue its gradual expansion around the world by entering Sweden next year. Local press reports revealed that the US warehouse club operator had exchanged contracts with property firm Trophi for a 13,000 sq. m. unit at Arninge station in Täby, north of Stockholm. The opening is expected in autumn 2022. The move was later confirmed by Trophi and a spokesperson for Costco, who said: “Costco is very happy to be able to offer our concept with membership to Täby and the wider market in the entire Stockholm region in the near future. We will offer consumers a wide range of quality products and services at low prices.” Costco has entered several new markets in recent years, including France and Iceland in 2017, and China in 2019. However, despite a positive response to the initial openings, the group takes a cautious approach to its expansion programme with all three markets still only having one warehouse. Costco currently operates 80...