Costco Sees Strong August Sales as Higher Membership Fees Take Effect
Costco Wholesale Corp. reported net sales of $19.83 billion for the retail month of August, the four weeks ended Sept. 1, a jump of 7.1% from $18.51 billion last year.
Comparable sales in the United States increased 4.7% and rose 5.0% for total company, while e-commerce during August skyrocketed 22.9%.
For comparable sales excluding the impacts from changes in gasoline prices and foreign exchange, Costco experienced an increase of 6.7% in the United States and 7.1% growth for the total company. E-commerce soared 23.3%.
The warehouse club's food departments contributed to the strong August sales, with meat and produce performing particularly well.
While cash-strapped consumers continue to flock to club stores like Costco for lower-priced bulk items, a new buying-in-bulk trend is emerging.
Research from consulting firm Advantage Solutions found that consumers are splitting their bulk bill with family and friends as a way to further manage their grocery costs.
“It’s definitely economically driven,” Jill Blanchard, president, enterprise client services at Advantage Solutions, told Progressive Grocer in a recent interview. “The effects of inflation have been cumulative and consumers are doing everything they can.”
The survey found that fresh meat and seafood are tops among such purchases, with 44% of consumers mentioning those products.
Meanwhile, Costco’s first membership price hike in seven years went into effect on Sept. 1. Annual membership fees will increase by $5 for U.S. and Canada Gold Star (individual), Business and Business add-on members, while annual fees for Executive Memberships will increase from $120 to $130. The fee change is expected to impact more than 52 million memberships.
Issaquah, Wash.-based Costco currently operates more than 882 warehouses, including 600-plus in the United States and Puerto Rico, 108 in Canada and 40 in Mexico. 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.
