Costco recently reported its fiscal third quarter numbers and they were, no surprise, strong. For the latest period ending May 12, comparable club sales in the U.S. were up six percent. For the three quarters to date, comp sales are also up six percent.
Costco, which plans to open 55 new locations in the U.S. over the next five years, has seen members increase their shopping visits, according to CFO Richard Galanti, largely due to the lure of discounted gas and fresh foods.
"Ten to 11 percent of our sales are gas, and that clearly drives people into the parking lot," Mr. Galanti said in response to an analyst's question on the company's earning call. "And 30 or so of every 100 that pump gas go to shop. Clearly, even if one of those 30 is incremental, that's good, aside from having a profitable gas operation."
Costco continues to hold onto gains it made during the Great Recession.
"When the economy got hammered, people ate out less, not just the steak houses for business travel, but families with neighborhood restaurants," said Mr. Galanti. "While it's come back, it's not back to where it originally was, and clearly our strength in fresh foods, I think, has helped a lot."
- Costco Wholesale CEO Discusses F3Q 2013 Results (Earnings Call Transcript) - Seeking Alpha
- Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal Year 2013 - Costco Wholesale Corporation/Marketwired
- Low Prices Help Costco's Quarterly Profit Rise - Reuters/CNBC
- Costco Earnings Beat Zacks' Expectation - Analyst Blog - NASDAQ
- Costco Plans 150 New Stores in 5 Years - Supermarket News
- Costco Earnings Surge on Higher Sales, Fees - DailyFinance