Costco Reports Brisk Grocery Sales for July
July is traditionally a quiet month in retail, but it was a solid one for Costco Wholesale Corp. The company reported net sales of $19.26 billion, an overall lift of 7.1% compared to July 2023. In the United States, net sales rose 5.3% versus 4.5% the prior year.
Other metrics were up, too. Comparable sales in the United States climbed 6.3% for the four-week period that started July 8 and ended Aug. 4. Last year, that pace came in at 4.9%.
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According to Josh Dahmen, AVP of finance and investor relations, grocery categories fared well. “Food and sundries were positive mid-single digits, and cooler, frozen and sundries were the were strongest departments. Fresh food were up high single digits and better-performing departments included produce and meat,” he said during the monthly financial webcast.
Dahmen also reported that the strongest comp results came from the northeast, Midwest and Texas regions in the monthly time period.
In addition to shopping club stores in person, Costco members have been busy online. E-commerce sales spiked 20.2% on a year-over-year basis, up from the 15.6% rate in July 2023.
In other news, Costco announced some club entry changes as it seeks to minimize loss and theft related to membership card sharing. "Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse. Once deployed, prior to entering, all members must scan their physical or digital membership card by placing the barcode or QR Code against the scanner. Guests must also be accompanied by a valid member for entry,” Costco explained in a statement on its website, adding that associates typically stationed at the doors can assist members with any questions or issues.
The move comes after the operator confirmed speculation that it is finally raising its membership fees, starting in September.
Issaquah, Wash.-based Costco currently operates more than 880 warehouses, including 600-plus in the United States and Puerto Rico, and 108 in Canada. The company is No. 3 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. PG also named Costco among its Retailers of the Century.
