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Costco sees April sales climb more than 30%

Comparable-club sales lap year-ago decrease from pandemic-related shutdowns

Russell Redman

May 6, 2021

3 Min Read
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Costco's comp sales in April surged by 32.5% overall and 30.4% in the U.S.Costco

Costco Wholesale Corp. continued to build on strong pandemic-propelled gains a year ago, as April sales growth surpassed 30%.

In the four weeks ended May 2, net sales jumped 33.5% to $15.21 billion from $11.39 billion a year earlier, Costco reported yesterday after the market close. For the 35-week year to date, the warehouse club retailer tallied net sales of $126.58 billion, up 17.6% from $107.64 billion over the prior-year period.

Comparable-club sales in the April selling period climbed 32.5% overall and were up 24.2% excluding the impact of changes in fuel prices and foreign exchange (FX) rates. By business unit, comp sales rose 30.4% in the United States (24.9% excluding fuel and FX), 44% in Canada (23.8% excluding fuel and FX) and 33.5% internationally (20.3% excluding fuel and FX). 

Costco’s April e-commerce sales grew 20.5% on a comparable basis and were up 17.3% excluding FX.

The monthly results marked a big rebound from April 2020, when Costco saw decreases of 1.8% in net sales and 4.7% in comp-store sales, including a comp-sales decline of 3.3% in the U.S. (flat excluding fuel and FX). At the time, the company said stay-at-home orders, social distancing restrictions and some mandatory closures reduced traffic and sales at clubs. Business also was negatively impacted by limited service in travel and food courts; the closing of most optical, hearing aid and photo departments; and lower volume and price deflation in fuel sales.

Related:Costco posts 13% comp-sales gain in second quarter

Customer traffic for April 2021 surged by 34% worldwide and 33.3% in the U.S., according to David Sherwood, assistant vice president of finance and investor relations at Costco.

“This year's four-week April retail month had one additional shopping day versus last year due to the calendar shift of Easter. This positively impacted total and comparable sales, as well as traffic, by approximately 2.5%,” Sherwood said in a conference call late Wednesday.

“The average transaction for April was down 1.1%, which included positive impacts of 480 basis points from gasoline inflation and 350 basis points from FX,” he said, adding that the average fuel selling price was up 57% to $3.02 from $1.92 a year ago. 

Among comp sales in core merchandise categories, “food and sundries were positive high single digits. Tobacco, sundries and candy were the strongest departments,” Sherwood reported. “Fresh foods were up high single digits; better-performing departments included service deli and bakery. Nonfoods were positive in the high 40s. Better-performing departments included jewelry, apparel and home furnishings. Ancillary business sales were up more than 100%. Gas, hearing aids and optical were all significant drivers.” Comp-sales results exclude the positive impact of FX.

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

U.S. regions and markets posting the strongest sales results in April were the Southeast, Los Angeles and the Midwest, while internationally Mexico, Japan and the United Kingdom had the strongest performances, according to Sherwood.

Costco closed out the April 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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