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Costco rings up 23% comp-sales gain for May

Club traffic continues to rebound, average ticket size grows

Russell Redman

June 4, 2021

3 Min Read
Costco_club_exterior-evening.jpg
As in April, Costco's sales results for May marked a big rebound from a year ago, when the warehouse club chain was impacted by COVID-related restrictions.Costco

Strong food sales, led by fresh, helped fuel net and comparable sales growth of well over 20% at Costco Wholesale Corp. in May.

For the four weeks ended May 30, net sales surged 24.2% to $15.59 billion from $12.55 billion a year earlier, Costco reported yesterday after the market close. For the 39-week year to date, the warehouse club retailer recorded net sales of $142.17 billion, up 18.3% from $120.19 billion a year ago.

Comparable-club sales during the May selling period advanced 22.8% overall and were up 14.7% excluding the impact of changes in fuel prices and foreign exchange (FX) rates. By business unit, comp sales climbed 21.9% in the United States (16.7% excluding fuel and FX), 28.8% in Canada (8.9% excluding fuel and FX) and 21.5% internationally (9.6% excluding fuel and FX). 

E-commerce sales in May rose 12.1% on a comparable basis and were up 8.7% excluding FX, Issaquah, Wash.-based Costco said.

As in April, sales results for May represented a sizable resurgence from May 2020, when Costco saw increases of 7.5% in net sales and 5.4% in comp-store sales, including a comp-sales gain of 5.5% in the U.S. (9.2% excluding fuel and FX) and a 106.2% jump (108.1% excluding FX) in e-commerce sales. At the time, COVID-19 pandemic-related restrictions reduced traffic and sales at clubs. Costco also had limited service in its travel and food court areas, and most optical, hearing aid and photo departments were closed. The company, too, saw lower volume and price deflation in fuel sales, compared with inflation and increased gasoline volume in May 2021.

Related:Costco sales climb more than 20% in third quarter

David Sherwood, assistant vice president of finance and investor relations at Costco, reported continued strong club traffic for May, building on gains of more than 30% in April.

“Our comp traffic, or frequency, for May was up 18.8% worldwide and 18.3% in the U.S. this year. This year’s four-week May retail month had one additional shopping day versus last year due to the calendar shift of Memorial Day. This positively impacted total and comparable sales, as well as traffic, by approximately 2% to 2.5%,” Sherwood said in a conference call late Thursday. “Worldwide, the average transaction for May was up 3.4%, which included the positive impacts from gasoline inflation and FX,” he added.

Fuel price inflation boosted overall comp sales by about 4.4% for the month, according to Sherwood. “The average selling price was 53% higher year over year, at $3.13 per gallon this year compared to $2.05 cents last year. Comp gasoline volume was also up significantly relative to last year.”

Related:Costco under way with limited test of grocery curbside pickup

U.S. regions and markets posting the strongest sales results for Costco in May were the Southeast, Midwest and Texas, Sherwood said. Internationally, Spain, Mexico and Korea turned in the strongest performances.

“Moving to the merchandise highlights, food and sundries were positive mid- to high single digits. Candy, sundries and liquor were the strongest departments,” he said, noting that the category comp-sales results exclude the positive impact of FX. “Fresh foods were up low double digits. Better-performing departments included service deli and bakery. Nonfoods were positive in the mid- to high teens, and better-performing departments included home furnishings, jewelry and apparel. Ancillary business sales were up more than 80%. Gas, hearing aids, optical and food court were all significant drivers.”

Jefferies analyst Stephanie Wissink cited Costco’s strong May performance in food.

“May results are ahead of expectations and point to upside to the Q4 consensus core comp [sales] estimate of 3.8%,” Wissink wrote in a research note late Thursday. “We raise our Q4 core comp estimate to 6% on May strength and assuming a more modest tapering through the rest of the quarter based on continued momentum, especially in food, which has us rethinking food-at-home durability.”

Costco finished the May retail period with 809 warehouse clubs overall, compared with 787 a year earlier. By market, the retailer operates 559 clubs in the U.S. and Puerto Rico, 105 in Canada, 39 in Mexico, 29 in the United Kingdom, 29 in Japan, 16 in Korea, 14 in Taiwan, 12 in Australia, three in Spain and one each in Iceland, France and China. Costco runs e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

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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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