Costco has announced that their 2nd quarter profits are up 31%! That’s a lot!
Bloomberg provides some obvious theories as to why this might be:
By selling in bulk, Costco attracts shoppers seeking to buy more goods with fewer trips to counter higher food and fuel costs as the U.S. economy slows. Customers, who pay annual membership fees, also sought out cut-rate luxury items such as Burberry and Fendi handbags and Omega watches.
Costco is “focused on the member and the value that they are bringing to the member,” Lauri Brunner, an analyst at Thrivent Asset Management in Minneapolis, said in a March 3 telephone interview. The chain continues to “reap the benefits of trip consolidation by consumers.”
Are you shopping at Costco because you’re broke… or because Costco rocks your socks off?
Costco Profit Rises 31% as Shoppers Stock Up on Food (Update4) [Bloomberg]