Costco sees sales jump 11% and more customers eyeing ‘lower cost protein’

Costco reported an 11.2% increase in net sales to US$93.9 billion in the three months leading up to the end of August, up from $84.4 billion in the same quarter last year. The company attributes this growth to consumers seeking to maximize their spending as the cost of living continues to rise in Canada. Membership fees totaled $1.85 billion, a 7% increase from the previous year's quarter.

Costco has 84.1 million paid members, a 3.8% increase from the prior year. The company's focus on offering value is driving customers to shop more at Costco, as they aim to get the most value for their money. Despite higher prices in certain categories such as groceries, gasoline, and electronics, Costco's members remain willing to spend if they perceive a good value.

Costco's sales of non-food items grew by more than 50%, including items such as tires, houseware, furniture, health and beauty products, small appliances, and even massage chairs and saunas. Within the food section, there has been steady sales growth in "lower-cost proteins" as consumers look to save money while still stocking their fridge.

Premium food items such as USDA Prime and Wagyu beef, as well as bakery items, are also seeing increased demand as consumers are willing to spend more for perceived value.