Wow....Costco Has Been Going Gangbusters

[james.hendrickson]

I'm subscribed to Costco's PR list.

They've been on a tear recently - the last few quarters have delivered something like 16% improvements in gross sales, per quarter. The value of the stock has increased by 100% since I bought some.

Per costco:

ISSAQUAH, Wash., Sept. 01, 2021 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $15.75 billion for the retail month of August, the four weeks ended August 29, 2021, an increase of 16.2 percent from $13.56 billion last year.

For the 16-week fourth quarter ended August 29, 2021, the Company reported net sales of $61.4 billion, an increase of 17.4 percent compared to net sales of $52.3 billion during the similar period last year.

For the 52-week fiscal year ended August 29, 2021, the Company reported net sales of $192.1 billion, an increase of 17.7 percent from the $163.2 billion during the similar period last year.

Here is their results chart (it wouldn't copy and paste).



Too bad I only had like two shares, I'd be in the catbird seat at this point.

[disneysteve]

I'm sure warehouse clubs benefit from inflation in the grocery sector as people look for ways to keep costs down. Buying in bulk is one way to do that. Costco also sells a lot of other stuff as well as services like insurance and travel so they're probably also benefiting from a resumption of travel compared with 2020.

We belong to BJs personally. We did Costco for a year but didn't care for it. They didn't carry enough items that we use to make the membership worth it. It was great when we joined with the Groupon so we paid about $5 for the year but at the full renewal price, it didn't make sense for us. BJs fits our shopping habits much better.

[bjl584]

I looked into Costco a while back but came to the conclusion that I missed the boat and the stock was over-valued.
At over $400 a share I decided to put my money elsewhere.

[Fishindude77]

I can't believe how enamored some people are by Costco. I've got friends that frequently go out of there way, burn a bunch of gas, make special trips, etc. to shop there, then they rant and rave about how superior their products are to everyplace else.
Looks like just a little fancier Sams club to me, nothing special and products aren't any better, plus the nearest one is 50 miles away.

We tend to buy a bunch of stuff we don't need when we go to these places. I prefer to buy the bulk of my groceries and consumables local, and keep the smaller local folks in business.

[disneysteve]

I can't believe how enamored some people are by Costco. I've got friends that frequently go out of there way, burn a bunch of gas, make special trips, etc. to shop there, then they rant and rave about how superior their products are to everyplace else.
Looks like just a little fancier Sams club to me, nothing special and products aren't any better, plus the nearest one is 50 miles away.

Sam's Club, BJ's, and Costco are all very similar. We belong to BJ's. We also joined Costco a few years ago with a Groupon so it basically cost us $5 for the year. We found that for the products we buy and the way we shop, BJ's is better so we've maintained that membership and didn't renew Costco. We save far more than enough on what we buy there to justify the annual fee.

Your point about location is a good one, though. None of these places are worth it if they aren't conveniently located unless you can just go a few times a year and stock up enough to make it worthwhile. We hit BJ's about once every 4-6 weeks.

[Fishindude77]

Have never heard of BJ's. Must be a regional thing?

[rennigade]

Hasnt most of these retail giants stock gone up within the last year? Wish we had a Costco closer. We still have the membership but rarely get to one. We do online ordering through them though. We're stuck with Sams.

[Petunia 100]

Sam's Club, BJ's, and Costco are all very similar. We belong to BJ's. We also joined Costco a few years ago with a Groupon so it basically cost us $5 for the year. We found that for the products we buy and the way we shop, BJ's is better so we've maintained that membership and didn't renew Costco. We save far more than enough on what we buy there to justify the annual fee.

Your point about location is a good one, though. None of these places are worth it if they aren't conveniently located unless you can just go a few times a year and stock up enough to make it worthwhile. We hit BJ's about once every 4-6 weeks.

One item that we have found to more than pay for an annual Costco membership is prescription glasses. If you wear prescription glasses and it is time for a new pair, definitely check out Costco.

[bjl584]

Have never heard of BJ's. Must be a regional thing?

They are opening one near me very soon.
I got an ad in the mail for them recently.
It will be the first one close to me that I know of.

I'd think at some point the market will be oversaturated with warehouse club stores.

[disneysteve]

A million years ago, one of the very first warehouse clubs opened near us called Makro. It wasn’t open to the general public. In order to join you had to have a business license. It was divided into two sections: Food and general merchandise. You could only enter the food section if your business was such that it had a reason to buy food items. My dad joined with his accounting license and told them he needed access to the food side to buy snacks and supplies for the office. Of course we used it to buy stuff for ourselves. I also used it to buy supplies for the candy business I had in high school. Prices were fantastic because they sold at wholesale.

[LivingAlmostLarge]

I can't believe how enamored some people are by Costco. I've got friends that frequently go out of there way, burn a bunch of gas, make special trips, etc. to shop there, then they rant and rave about how superior their products are to everyplace else.
Looks like just a little fancier Sams club to me, nothing special and products aren't any better, plus the nearest one is 50 miles away.

We tend to buy a bunch of stuff we don't need when we go to these places. I prefer to buy the bulk of my groceries and consumables local, and keep the smaller local folks in business.

Well the closest grocery to me is a overpriced overhyped nice and better more upscale whole food type store. Next closest? Costco. Then about 2 blocks more a safeway. I get gas at 15-20 cents cheaper than elsewhere and good deals on food. Better in bulk for sure than safeway. So why would i not shop there? I now watch for chicken on sale at safeway or if I happen to be willing to drive further than 5 minutes (it's 1.35 miles so I have walked to costco), then I can get good deals from walmart. But that's like a 1x/month deal. Doesn't seem worth it to drive 30 minutes for it.

I've lived by a BJ, Sams, and Costco. Costco products are much superior. BJ/Sam lower quality but cheaper. I had a friend with BJ and costco and I would go with her to BJ solely for pampers cruisers (not sold at costco) and my kiddo was allergic to anything else including regular pampers. So there are better deals, but it depends. But overall I find that I do save money at costco because of bulk buying. But I do it because gas alone and milk pay for my executive membership. I "get" back $500+ a year.

Let me add extra things you can save on besides gas. Tires, garage doors, HVAC, etc. I have found it all to be cheaper. Also tires? When driving cross country we only buy our tires from costco. in 2015 on our hyundai DH had a flat. To replace it they didn't have it in stock. Then if he drove down the freeway 60 miles (1 hour on the way to where we were going) he could get it replaced guaranteed and a spot held for him. He did it they gave him back the amount used without a hassle, replaced it and he was out the door in less than 2 hours.

Unparalled customer service. Always. I've bought and returned across the country. Best ever. I also tend to buy stuff I will admit and then hold it and return it unopened perfect no questions asked. Right now I have dish stands and a bbq knife set I'm debating on. They will take it back I know perfectly. That and the deals on vitamins and stuff are great.

[Fishindude77]

Well the closest grocery to me is a overpriced overhyped nice and better more upscale whole food type store. Next closest? Costco. Then about 2 blocks more a safeway. I get gas at 15-20 cents cheaper than elsewhere and good deals on food. Better in bulk for sure than safeway. So why would i not shop there? I now watch for chicken on sale at safeway or if I happen to be willing to drive further than 5 minutes (it's 1.35 miles so I have walked to costco), then I can get good deals from walmart. But that's like a 1x/month deal. Doesn't seem worth it to drive 30 minutes for it.

I've lived by a BJ, Sams, and Costco. Costco products are much superior. BJ/Sam lower quality but cheaper. I had a friend with BJ and costco and I would go with her to BJ solely for pampers cruisers (not sold at costco) and my kiddo was allergic to anything else including regular pampers. So there are better deals, but it depends. But overall I find that I do save money at costco because of bulk buying. But I do it because gas alone and milk pay for my executive membership. I "get" back $500+ a year.

Let me add extra things you can save on besides gas. Tires, garage doors, HVAC, etc. I have found it all to be cheaper. Also tires? When driving cross country we only buy our tires from costco. in 2015 on our hyundai DH had a flat. To replace it they didn't have it in stock. Then if he drove down the freeway 60 miles (1 hour on the way to where we were going) he could get it replaced guaranteed and a spot held for him. He did it they gave him back the amount used without a hassle, replaced it and he was out the door in less than 2 hours.

Unparalled customer service. Always. I've bought and returned across the country. Best ever. I also tend to buy stuff I will admit and then hold it and return it unopened perfect no questions asked. Right now I have dish stands and a bbq knife set I'm debating on. They will take it back I know perfectly. That and the deals on vitamins and stuff are great.

The Costco lovers I know have many of the same praises.
I've been there quite a few times and can't get excited about it. However, if we get to the point where we need five gallon buckets of pickles and fifty pound bags of rice, I'll join up.

[LivingAlmostLarge]

The Costco lovers I know have many of the same praises.
I've been there quite a few times and can't get excited about it. However, if we get to the point where we need five gallon buckets of pickles and fifty pound bags of rice, I'll join up.

But putting aside all the praises, bottom line is I save enough in gas (also the 2nd closest gas station) alone to pay for my membership. Everything above it is gravy. That and auto/home insurance is cheaper than everyone else I've quoted. I drove 329 gallons on 1 car last year and 273 gallons on the other = 602 gallons with 15 cents savings = $90.30 savings. Regular membership is $60. I paid $120. That was during a covid year. Normal driving is 972 gallons in 2019 @ 15 cents = $138.15. My BIL does not need anything in bulk and rarely shops there. He uses it as a single guy for gas (also lives very close) and auto/home insurance. The gas alone drives his savings. He buys stuff rarely he's not like us but the gas savings in California no less is a lot. And booze actually for him.

[james.hendrickson]

And....costco isn't letting up.

Here is the latest update on their gross sales.

ISSAQUAH, Wash., Oct. 06, 2021 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $19.50 billion for the retail month of September, the five weeks ended October 3, 2021, an increase of 15.8 percent from $16.84 billion last year.

[james.hendrickson]

And - Costco's earnings are still beating the market. Here are the results from October of this year.