We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Costco (COST) Adapts to New Normal as Shoppers Go Online
Read MoreHide Full Article
Amid fears of the ongoing pandemic and resultant social distancing, retailers have been directing resources toward omni-channel platforms, accelerating fleet optimization and augmenting supply chain. No wonder, Costco Wholesale Corporation (COST - Free Report) has been adopting strategies and making planned investments to cater to consumer demand and behavior in the new normal.
Notably, Costco’s strategy to sell products at discounted prices has helped it expand customer base. Apparently, the company has emerged as one of the preferred shopping destinations for consumers amid the ongoing crisis be it for essentials or other discretionary purchases. Markedly, the company’s differentiated product range resonates well with customers’ spending habits.
This Issaquah, WA-based company has been focusing on providing a seamless shopping experience, whether online or at stores. We note that shares of this Zacks Rank #3 (Hold) company have advanced 31.2% so far this year compared with the industry’s rally of 14.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sturdy E-commerce Sales
Consumers’ increased shift to online purchasing owing to the coronavirus outbreak seems to have worked in favor of the company. Costco operates e-commerce sites in the United States, Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
The company’s e-commerce sales have been showcasing a sharp increase owing to the rising stay-at-home trend to maintain social distance amid the pandemic. We note that e-commerce comparable sales soared 91.1% for the retail month of October, the four weeks ended Nov 1, 2020. This followed an increase of 90.3%, 101.9%, 75.3% and 85.8% in the months of September, August, July and June, respectively.
To drive online sales, the company launched CostcoGrocery to deliver non-perishable items to buyers’ homes. Its partnership with Instacart facilitates same-day delivery of groceries to shoppers. The company acquired Innovel Solutions, a leading provider of third-party end-to-end logistics solutions. The buyout bolsters Costco’s e-commerce capabilities and facilitates sales of "big and bulky" items.
Comps Growth Streak Continues
Impressively, Costco’s comparable sales for the month of October rose 14.4%. This followed an increase of 15.5% in September, 13.2% in both August and July, and 11.5% in June. The monthly comparable sales reflect an increase of 13.6%, 13.9% and 19.6% in the United States, Canada and Other International locations, respectively.
Excluding the impacts from change in gasoline prices and foreign exchange, comparable sales for the month under discussion rose 16.5% on an improvement of 16.4%, 15.2% and 19% in the United States, Canada and Other International locations, respectively.
Incredible Sales Run
Costco’s growth strategies, better price management, decent membership trends and increasing penetration of e-commerce business have been contributing to its upbeat performance. Thanks to its status of essential retailer, the company has been benefiting from the coronavirus-induced spike in demand. Cumulatively, these factors have been aiding this operator of membership warehouses in registering impressive sales numbers.
Notably, Costco registered an increase of 15.9% in net sales to $13.82 billion during the month of October. This followed an improvement of 16.9%, 15%, 14.1% and 11.1% in the months of September, August, July and June, respectively.
Wrapping Up
Costco continues to be one of the dominant warehouse retailers based on the expanse and quality of merchandise offered. It is also focused on ramping up investments in the wake of rising competition from the likes of Dollar Tree (DLTR - Free Report) , Dollar General (DG - Free Report) and Target (TGT - Free Report) . We believe that the company’s business model and commitment toward opening membership warehouses will continue to drive traffic.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Costco (COST) Adapts to New Normal as Shoppers Go Online
Amid fears of the ongoing pandemic and resultant social distancing, retailers have been directing resources toward omni-channel platforms, accelerating fleet optimization and augmenting supply chain. No wonder, Costco Wholesale Corporation (COST - Free Report) has been adopting strategies and making planned investments to cater to consumer demand and behavior in the new normal.
Notably, Costco’s strategy to sell products at discounted prices has helped it expand customer base. Apparently, the company has emerged as one of the preferred shopping destinations for consumers amid the ongoing crisis be it for essentials or other discretionary purchases. Markedly, the company’s differentiated product range resonates well with customers’ spending habits.
This Issaquah, WA-based company has been focusing on providing a seamless shopping experience, whether online or at stores. We note that shares of this Zacks Rank #3 (Hold) company have advanced 31.2% so far this year compared with the industry’s rally of 14.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sturdy E-commerce Sales
Consumers’ increased shift to online purchasing owing to the coronavirus outbreak seems to have worked in favor of the company. Costco operates e-commerce sites in the United States, Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
The company’s e-commerce sales have been showcasing a sharp increase owing to the rising stay-at-home trend to maintain social distance amid the pandemic. We note that e-commerce comparable sales soared 91.1% for the retail month of October, the four weeks ended Nov 1, 2020. This followed an increase of 90.3%, 101.9%, 75.3% and 85.8% in the months of September, August, July and June, respectively.
To drive online sales, the company launched CostcoGrocery to deliver non-perishable items to buyers’ homes. Its partnership with Instacart facilitates same-day delivery of groceries to shoppers. The company acquired Innovel Solutions, a leading provider of third-party end-to-end logistics solutions. The buyout bolsters Costco’s e-commerce capabilities and facilitates sales of "big and bulky" items.
Comps Growth Streak Continues
Impressively, Costco’s comparable sales for the month of October rose 14.4%. This followed an increase of 15.5% in September, 13.2% in both August and July, and 11.5% in June. The monthly comparable sales reflect an increase of 13.6%, 13.9% and 19.6% in the United States, Canada and Other International locations, respectively.
Excluding the impacts from change in gasoline prices and foreign exchange, comparable sales for the month under discussion rose 16.5% on an improvement of 16.4%, 15.2% and 19% in the United States, Canada and Other International locations, respectively.
Incredible Sales Run
Costco’s growth strategies, better price management, decent membership trends and increasing penetration of e-commerce business have been contributing to its upbeat performance. Thanks to its status of essential retailer, the company has been benefiting from the coronavirus-induced spike in demand. Cumulatively, these factors have been aiding this operator of membership warehouses in registering impressive sales numbers.
Notably, Costco registered an increase of 15.9% in net sales to $13.82 billion during the month of October. This followed an improvement of 16.9%, 15%, 14.1% and 11.1% in the months of September, August, July and June, respectively.
Wrapping Up
Costco continues to be one of the dominant warehouse retailers based on the expanse and quality of merchandise offered. It is also focused on ramping up investments in the wake of rising competition from the likes of Dollar Tree (DLTR - Free Report) , Dollar General (DG - Free Report) and Target (TGT - Free Report) . We believe that the company’s business model and commitment toward opening membership warehouses will continue to drive traffic.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>