Costco sales have reached a staggering new height as its online sales reached 43.5% in the last quarter of 2017.
It’s been successfully holding its own as it continues its battle with Amazon, which recently had a notable push as it ventured into groceries when it procured Whole Foods in August.
The company’s shares rose after the first quarter revenue went over the analysts’ estimates. Chief financial officer Richard Galanti also said that he was pleased that the membership renewal fees were stable after previous forecasts that the company’s shares could drop.
“Overall, results were solid with very strong sales numbers and good margins…We were also positive that membership renewals seem to have stabilized,” Brian Yarbrough, Edwards Jones Analyst
Increase in membership charge
According to Costco chief financial officer Richard Galanti, the membership fee income has increased to $682 million which is at least 9.8 percent increase from $630 million in 2016.
Almost $24 million of the $62 million came from the membership increase. Although the company has lagged competitors over certain fears that Costco is too focused on retail warehouses.
According to a conversation with analysts on December 14, Galanti said that Costco is experimenting with eCommerce in its own way, using samplings like the pick-up in stores and online purchases, which somehow is somehow driving traffic to its warehouses.
The company had always been hesitant to allow its customers to purchase products online but it’s now offering merchandises like gadgets and jewellery.
Costco has recently announced its sales for this period, showing its 44 percent increase in eCommerce.
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