Costco makes strides with value-seeking shoppers

The news: Costco’s comparable sales jumped more than expected in Q4, as shoppers happily splashed out on big-ticket items like 99-inch televisions and gold jewelry and visited the retailer more often to purchase groceries.

  • Comparable sales rose 6.8% YoY during the holiday quarter, outpacing expectations for a 6.4% rise. US comparable sales grew by 8.3% YoY, or 8.6% when taking gas deflation into account.
  • That momentum is carrying over into February. Net sales increased 8.8% YoY, while US comp sales rose 8.6%.

Behind the numbers: The sizable increase in February sales is particularly notable since early signs point to softening consumer spending during the month, due to factors ranging from colder weather, the LA wildfires, and a drop in consumer confidence. It also suggests that Costco emerged from February 28’s economic boycott unscathed—and that its commitment to DEI hasn’t hurt its standing with shoppers.