Costco Sales Rise 5.8%, Driven by Fresh Food and Non-Food Categories

Costco’s total company comparable sales increased 5.8% in June, driven by demand for fresh foods and non-food categories like jewelry, major appliances and gift cards.

By region, the retailer’s sales were up 4.7% in the United States, 6.7% in Canada and 10.9% in its other international markets, Costco said in a Wednesday (July 9) press release.

Costco’s eCommerce sales were up 11.5% for the month, according to the release.

During the retail month of June, which includes the five weeks ended July 6, the retailer’s net sales rose 8.0% to reach $26.44 billion, per the release.

By merchandising category, Costco’s comparable sales in June saw increases in three categories, with high-single-digits growth in fresh foods, led by meat and produce; mid- to high-single-digits growth in non-foods, led by jewelry, major appliances and gift cards; and mid-single-digits growth in June foods and sundries, led by cooler, candy and foods, according to a pre-recorded message that accompanied the press release.

The retailer saw the month’s comparable sales decline in two categories: ancillary business sales, which were down low-single digits, and gas, which was down mid- to high-single digits, the message said.

In the ancillary business category, the top performers were pharmacy, hearing aid and optical. The decline in the gas category was driven by year-over-year changes in price per gallon, per the message.

Costco is one of the retailers that have benefited from high-income Americans going bargain hunting and seeking merchants that focus on value, PYMNTS reported June 5.

During the company’s first-quarter earnings call, Costco Chief Financial Officer Gary Millerchip said that even affluent members are trading down, with notable growth in value categories like private-label goods and lower-cost proteins.

“Our goal is always to be the first to lower prices where we see opportunities,” Millerchip said.

On June 18, Costco tapped Instacart to offer faster delivery. This partnership enhances Priority Delivery, an offering through Costco, which is expanding the shipping options on its Instacart-powered eCommerce platform.

The platform’s offerings include No-Rush Delivery, which lets Costco members schedule orders hours or days in advance, and Priority Delivery, which offers deliveries in as fast as 30 minutes.