"Costco's move to extend operating hours this summer is paying off big. "We estimate these incremental hours added about 1% to weekly US sales since implementation. This has been very well received by our members," CEO Ron Vachris said during the company's fourth quarter earnings call Thursday. The company beat expectations with full-year revenue of $269.9 billion, or 8.1% over last year."
"CFO Gary Millerchip also said that the extended hours and other new perks led a higher share of shoppers to upgrade their memberships. Costco finished the quarter with 81 million paid memberships, of which 38.7 million were executive. Within the 1.4 million additional memberships, 1.1 million were executive."
"Foot traffic data from Placer.ai indicates the adjustment is helping the company accomplish several key goals, namely getting shoppers to visit more quickly and more often. "It's early, but I do think this is a win," Placer.ai analyst RJ Hottovy told Business Insider."
Costco extended operating hours for executive members this summer and estimated the incremental hours increased weekly US sales by about 1%. Full-year revenue reached $269.9 billion, up 8.1% year over year. The company reported 81 million paid memberships, including 38.7 million executive members; of 1.4 million added memberships, 1.1 million were executive. CFO Gary Millerchip attributed part of the upgrade trend to extended hours and other new perks. Placer.ai foot traffic data shows shoppers are visiting more quickly and more often, and analyst RJ Hottovy called the early results a win.
Read at Business Insider
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