"By September, the perk applied to Executive members at all Costco stores. Now, according to a new report released on Thursday from analytics company Placer.ai, the move has resulted in measurable effects in foot traffic for the wholesale giant, "likely improving the shopping experience for members overall" by creating "a more balanced flow of visitors." Costco's earlier hours have shifted visits to earlier in the day while decreasing foot traffic during peak hours."
"Costco's latest quarterly report, released in late May for the third quarter ending May 11, showed that sales momentum was strong for the company. Net sales increased 8% to $61.96 billion, up from $57.39 billion the previous year. The warehouse chain reports its fourth quarter earnings on Sept. 25. An Executive membership at Costco costs $130 per year. The Business and Gold Star memberships are each priced at $65 annually."
"Memberships are a prime revenue source for Costco, allowing the company to keep prices low by offsetting operating costs. Costco made about $4.8 billion in membership sales during the 2024 fiscal year ending September 1, 2024, up from $4.6 billion in 2023. In 2024, membership fees comprised close to 65% of Costco's overall $7.4 billion net income for the year."
Costco expanded morning shopping hours for Executive members starting in June and applied the perk systemwide by September. A Placer.ai analysis found the earlier access shifted visits earlier in the day and reduced foot traffic during typical evening peak hours, creating a more balanced flow of visitors and likely improving the shopping experience. The chain reported strong sales momentum, with net sales up 8% to $61.96 billion for the quarter ending May 11. An Executive membership costs $130 annually while Business and Gold Star memberships cost $65. Membership sales reached about $4.8 billion in fiscal 2024 and comprised close to 65% of $7.4 billion net income.
Read at Entrepreneur
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