Costco Members Streamline Their Shopping at Warehouse Club in Pursuit of Value
In April, Costco reported a 7% year-over-year sales increase, driven by strong demand for meats and baked goods, as members concentrate more of their shopping at the warehouse club.
Key Insights
- Costco Wholesale experienced a 7% year-over-year sales growth in April, with a 5% increase in foot traffic at its U.S. stores, the company announced on Wednesday.
- UBS analysts suggest this rise is not due to members stockpiling ahead of tariff hikes.
- Instead, members are increasingly choosing Costco for its combination of value and fresh product offerings.
In April, Costco’s sales surged by 7% compared to the previous year, reflecting a trend where members are consolidating more of their shopping trips at the warehouse club.
The company reported $21.18 billion in monthly sales, up from $19.8 billion in April last year. Comparable sales in the U.S. climbed 5.2%, with store traffic increasing by 5%, according to the update released on Wednesday.
UBS analysts noted that members are gravitating towards Costco as they seek greater value in their purchases.
Food and everyday essentials, including meat, baked goods, and deli items, saw sales growth in the high single digits, while non-food categories such as jewelry and home furnishings experienced mid-to-high single-digit percentage gains, Costco reported.
UBS analysts indicated that this sales boost is unlikely to be driven by a short-term rush to stockpile goods before tariff changes, given Costco’s inventory of many consumable products.
“Costco continues to offer compelling value, quality, and innovation,” UBS analysts stated. “Consequently, customers are increasingly consolidating their shopping at this retailer.”
Costco’s stock remained stable on Thursday morning and has appreciated over 30% in the past year.
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