ISSAQUAH, Wash. — Costco Wholesale Corp.’s September net sales increased 13% to $30.02 billion, as higher gasoline prices amplified gains in shopper traffic, digital sales and merchandise spending.
Sales for the five-week retail month ended Oct. 4 rose from $26.58 billion a year earlier. Comparable sales, excluding all gasoline sales and the impact of foreign exchange, increased approximately 7.5% companywide, according to Andrew Yoon, the retailer’s finance and investor relations executive.
U.S. comparable sales increased 12.5%, or 8% excluding changes in gasoline prices and foreign exchange. Canadian comparable sales rose 6.3%, with an adjusted increase of 4.9%. Other international markets posted comparable sales growth of 10.8%, or 7.7% on an adjusted basis.
Digitally enabled sales climbed 19%, or 19.1% excluding foreign exchange effects. Costco defines the measure as sales initiated through a digital device, whether fulfilled through a warehouse, distribution center or Costco Travel.
Traffic remained a significant contributor to growth. Comparable shopping frequency increased 4.7% worldwide and 4.3% in the United States. The average transaction rose 6.4% globally, including gasoline inflation and currency effects, and increased 2.8% excluding those factors.
Gasoline price inflation added approximately 3.8 percentage points to reported companywide comparable sales growth. The average worldwide selling price per gallon increased 32.8% from a year earlier.
Gasoline sales rose by a percentage in the mid-40s, reflecting both higher prices and comparable gallon growth in the high single digits. The performance helped lift ancillary sales by a percentage in the mid-30s, with pharmacy and food court operations also among the strongest performers.
Merchandise gains extended across Costco’s major categories. Nonfood comparable sales increased by a percentage in the high single digits, led by gift cards, housewares and sporting goods. Fresh food sales rose by a percentage in the mid- to high single digits, with bakery and meat among the better-performing departments.
Food and sundries comparable sales increased by a percentage in the mid-single digits. Sundries, food and frozen food were the stronger departments. The category results exclude foreign exchange effects.
The Midwest, Southeast and San Diego regions delivered the strongest U.S. comparable sales results. Among other international markets, Spain, Taiwan and China led growth measured in local currencies.
Foreign exchange had an approximately neutral effect on total company sales. Currency movements reduced Canadian total and comparable sales by approximately 1% and lifted results in other international markets by approximately 1.2%.
Yoon said a shift in Labor Day timing benefited September total comparable sales by slightly more than half a percentage point. Sales cannibalization reduced comparable sales growth by approximately 0.6 percentage points.
Costco’s October reporting period will cover the four weeks beginning Oct. 5 and ending Nov. 1.
