Sponsored By

Costco sees sales jump in June

U.S. same-store results climb by double digits

Russell Redman

July 12, 2018

3 Min Read
Supermarket News logo in a gray background | Supermarket News

Costco Wholesale Corp. continued its streak of robust revenue gains in June, including its third straight month of double-digit increases in U.S. comparable-store sales.

For the five weeks ended July 8, Costco totaled sales of $13.55 billion, up 11.7% from $12.13 billion a year earlier.

June comp-store sales rose 9.7% overall and 10.8% in the United States, compared with year-over-year growth of 6% in Canada and 7.3% in other international markets, Issaquah, Wash.-based warehouse club chain said. E-commerce sales surged 27.9% companywide.

Excluding the impact of fuel price inflation and foreign exchange, Costco’s same-store sales were up 6.9% in June, including a 7.7% increase in the U.S. Growth came in at 3.4% for Canada and 6.9% for international, excluding gas prices and currency exchange, during the month. The gain for e-commerce stayed about the same, with those sales rising 27.7%.

Zacks Equity Research noted that Costco’s strong same-store performance in June came on the heels of an 11.7% uptick in May. “This shows that the company continues to be one of the dominant retail wholesalers based on the breadth and quality of merchandise offered,” Zacks said in a report Thursday on Costco’s June sales results.

During June, food and sundries tallied comp-store sales (excluding foreign exchange) in the mid-single digits, led by tobacco, liquor and frozen foods, David Sherwood, assistant vice president of finance and investor relations at Costco, said in a conference call late Wednesday.

“Fresh foods were up by mid-single digits, and the better-performing departments were bakery and service deli,” he said.

Club traffic and basket size also edged up in June, according to Sherwood. On a comparable basis, Costco’s store traffic during the month increased 4.4% worldwide and 4.6% in the U.S.

“The average transaction was up 5% for the month, which includes the combined impacts from foreign exchange and gasoline price inflation,” he said.

As shown by the e-commerce sales jump in June, Costco is making big strides in growing its digital retail business, according to Zacks.

“This signals that its efforts to drive online sales bode well,” the Zacks research note said. “With the wave of digital transformation hitting the sector, retailers are fast adopting the omnichannel mantra to provide a seamless shopping experience, whether online or in stores. Costco, which shares space with Walmart, Amazon and Target, is no exception to this trend.”

For the year-to-date period through July 8, Costco totaled sales of $116.81 billion, up 12% from $104.28 billion a year ago. E-commerce revenue for the 44 weeks rose 34.8%. Same-store sales for the year to date gained 9.6% overall (6.7% excluding fuel and forex) and 9.1% (7.2% excluding fuel and forex) in the U.S.

As of July 8, Costco had 752 wholesale clubs, including 522 in the United States and Puerto Rico, 98 in Canada, 38 in Mexico, 28 in the United Kingdom, 26 in Japan, 14 in Korea, 13 in Taiwan, nine in Australia, two in Spain, one in Iceland and one in France. The retailer also operates e-commerce websites in the U.S., Canada, the U.K., Mexico, Korea and Taiwan.

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

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like