Costco Extends Double-Digit Sales Growth in October
Costco Wholesale relied on sequential and year-over-year sales growth with more double-digit gains in October.
For the four weeks ended Oct. 31, net sales rose 19.2% to $ 16.47 billion from $ 13.82 billion a year earlier, Costco reported yesterday after the market closed. This compares to increases of 15.8% for September and 15.9% in October 2020.
Comparable club sales for the October sales period increased 17.58% overall and 15.3% excluding the impact of changes in fuel prices and exchange rates (FX). By business unit, comp sales increased 17% in the United States (11.7% excluding fuel and currencies), 20.6% in Canada (10% excluding fuel and currencies) and 17% at international (14.7% excluding fuel and currencies).
E-commerce sales rose again in double digits in October, up 16.5% year-on-year (15.3% excluding FX). This compared to September’s 10.6% gain (9.6% ex-FX) and October 2020 growth of 91.1% (91% ex-FX), when consumer demand was high due to the impact of COVID-19.
In the nine-week period since the start of the year, the warehouse club retailer reported net sales of $ 35.97 billion, up 17.3% from $ 30.66 billion. dollars a year ago. Comp sales increased 15.6% (10.4% excluding fuel and currency) overall, including 15.6% in the United States (10.7% excluding fuel and currency). E-commerce sales increased 13.2% over the nine weeks and 12.1% excluding currency.
“Our traffic, or frequency, for the month of October increased 8.4% globally and 7.9% in the United States,” said David Sherwood, assistant vice president of finance and relations with investors at Costco, in a telephone report Wednesday night. “Globally, the average October transaction increased 8.4%, which includes the positive impacts of gasoline and currency insulation.”
Sherwood noted the rise in fuel prices, up more than a dollar a gallon from October 2020. “Inflation in gasoline prices has had a positive impact on total reported commodity sales. about 4.6%, ”he said. “The average selling price was 50% higher year over year at $ 3.52 per gallon this year, compared to $ 2.35 last year.”
The U.S. regions and markets with the best selling results for Costco in October were the Southeast, Texas and Los Angeles, Sherwood reported. Internationally, the United Kingdom, Australia, Mexico and Taiwan achieved the best performances.
“Moving on to merchandise strengths,” he said, “food and sundries were single digit positive. Sweets, frozen foods, and cold cuts were the strongest departments. Fresh food was up in single digits. The best performing departments included delicatessen and bakery. Non-food was positive in the middle of adolescence. The top performing departments included home furnishings, jewelry, household items, and the garden. Sales of ancillary businesses increased by 40%. Gas and food court were the best performers.
Costco ended the October sales period with 820 warehouse clubs in total, up from 800 a year earlier. By market, the retailer operates 568 clubs in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, three in Spain and one each in Iceland, France and China. Costco also has e-commerce sites in the United States, Canada, United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.