Why Costco is the new Amazon
While everyone is busy worrying about Amazon, Costco is proving every month that it's still king when it comes to sales and customer loyalty.
A lot has been made of the glowing quarterly reports over the past few weeks from Walmart, Target and Amazon, but it is the Costco value proposition (and the customer loyalty it generates) that is beating them all, quarter after quarter.
Costco reported this week that its same store sales were up again, this time 8.9% in August, excluding the impacts of fuel and currency fluctuations. That was the 14th straight month of positive comparable sales for the retailer.
Costco also said that August net sales reached $11 billion, up 12% from $9.8 billion last year. Fourth-quarter sales rose 5% to $43 billion, the company said. For the fiscal year ended Sept. 2, Costco said net sales topped $138 billion, an increase of 9.7% from the $126 billion in fiscal 2017.
Costco's e-commerce sales were up 23.8% in August. Costco has been able to boost its e-comm sales through a series of initiatives, including the launch of CostcoGrocery last fall, which offers two-day delivery for non-perishable food and household supplies to customers nationwide.
Costco has also expanded its same-day delivery service through an updated partnership with Instacart.
Costco currently operates 762 warehouses, including 527 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 28 in the United Kingdom, 26 in Japan, 15 in Korea, 13 in Taiwan, 10 in Australia, two in Spain, one in Iceland, and one in France. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, and Taiwan.