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Costco extends double-digit sales growth in October

Deli, bakery departments drive increased food sales

Russell Redman

November 4, 2021

3 Min Read
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Costco said U.S. comparable-club sales climbed by 17% year over year in October.Costco

Costco Wholesale built on sequential and year-over-year sales growth with more double-digit gains in October.

For the four weeks ended Oct. 31, net sales advanced 19.2% to $16.47 billion from $13.82 billion a year earlier, Costco reported yesterday after the market close. That compared with upticks of 15.8% for September and 15.9% in October 2020.

Comparable-club sales for the October selling period climbed 17.5% overall and were up 15.3% excluding the impact of changes in fuel prices and foreign exchange (FX) rates. By business unit, comp sales rose 17% in the United States (11.7% excluding fuel and FX), 20.6% in Canada (10% excluding fuel and FX) and 17% internationally (14.7% excluding fuel and FX). 

E-commerce sales again grew by double digits in October, rising 16.5% year over year (15.3% excluding FX). That compared with September’s gain of 10.6% (9.6% excluding FX) and October 2020 growth of 91.1% (91% excluding FX), when consumer demand was elevated due to the impact of COVID-19.

In the nine-week year-to-date period, the warehouse club retailer posted net sales of $35.97 billion, up 17.3% from $30.66 billion a year ago. Comp sales gained 15.6%  (10.4% excluding fuel and FX) overall, including 15.6% in the U.S. (10.7% excluding fuel and FX). E-commerce sales rose 13.2% over the nine weeks and were up 12.1% excluding FX.

Related:Costco earns kudos as Canada’s ‘most respected’ grocer

“Our comp traffic, or frequency, for October was up 8.4% worldwide and 7.9% in the U.S.,” David Sherwood, assistant vice president of finance and investor relations at Costco, said in a phone report late Wednesday. “Worldwide, the average transaction for October was up 8.4%, which included the positive impacts from gasoline insulation and FX.”

Sherwood noted the jump in fuel prices, up more than a dollar per gallon from October 2020. “Gasoline price inflation positively impacted total reported comp sales by approximately 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.”

U.S. regions and markets seeing the strongest sales results for Costco in October were the Southeast, Texas and Los Angeles, Sherwood reported. Internationally, the United Kingdom, Australia, Mexico and Taiwan turned in the top performances.

“Moving to merchandise highlights,” he said, “food and sundries were positive high single digits. Candy, frozen and deli were the strongest departments. Fresh foods were up high single digits. Better-performing departments included service deli and bakery. Nonfoods were positive mid-teens. Better-performing departments included home furnishings, jewelry, domestics and garden. Ancillary business sales were up high 40s. Gas and food court were the top performers.”

Related:Costco U.S. comp sales up nearly 15% in September

Costco finished the October sales period with 820 warehouse clubs overall, compared with 800 a year earlier. By market, the retailer operates 568 clubs in the U.S. 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 U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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