Costco Is On Fire, Profit Up 31%
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.Are you shopping at Costco because you're broke... or because Costco rocks your socks off?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.''
Costco Profit Rises 31% as Shoppers Stock Up on Food (Update4) [Bloomberg]
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My socks get so rocked, I hafta buy them in bulk.
Both.
As a validated impulse buyer, I have to be extremely careful when I visit Costco and stick to my shopping list. No American Express credit card for me. I use a check or cash and limit what I purchase. But I'm amazed at the loaded carts going out the door of Costco.
Because Kirkland diapers are the same as Huggies Supreme at 1/2 the price. Kirkland detergent is Tide, as well. That's why I shop there.
I don't shop there too much (tiny Manhattan apt. for the win!) but will occasionally split something with the inlaws in the burbs.
What I do like buying there
- Blue Jeans/ other clothes ($25 for good quality jeans? F'yea)
- Electronics (good prices, return policy)
- Canned tuna, or other similarly el bland food. that will last for ever.
- Frozen Shrimp, you can get the "Lazy cooks special" peeled and deviened individually frozen shrimp for a much better price than super markets.
I shop at costco because its on my way home from work. That, and the sock off-rocking.
Edit:
Also, the cheap, Delicious hot dogs, and the fact that the EMPLOYEES ARE COMPETANT are huge draws for me. Even if the lines are long, it's because of density, not because of an idiot cashier.
Lack of sales pressure (and a decent return policy) is mind-easing. But that's usually erased when you can't find an associate to direct you to where they moved your favorite product(s) THIS week.
The return policy on electronics ROCKS! 90 days, no restocking fee.
So you buy the cheap HDTV, plug it in, see if you like it, if so, cool, it was cheap. If not, you return it and buy a more expensive model.
Oh my god they asked to check my receipt! AIGGGGGHHHHHH!!!! Juuuust kidding.
I live 100 miles from the closest Costco and go there every 6 - 8 weeks. I bought a chest freezer there a few years ago so I can stock up on meat (they have the best steaks around), frozen fish, etc. My 3 dogs eat Kirkland Signature dog food (one 40 lb bag every 2 weeks) and our Costco has the best deal on Chilean wine (liter and half for $5.94). You just can't beat the place - it rocks.
I <3 Costco, because their return policy rules, and their employees aren't a bunch of dicks. The facts that I usually get good quality products, and usually save a bit of money, are just added bonuses.
I love that store so much. I just bought an Xbox 360 bundle with Call of Duty 4, an extra controller, and the rechargeable battery pack for $439. That's like getting the controller for free.
We just joined Costco and are thrilled! They really have awesome stuff there, I had no idea how much non-food-items they carry. Except for the weird, weird, only Amex or debit card policy, god is that obnoxious
I enjoy saving 10-15 cents per gallon on gas (the costco is by my office so no extra gas is wasted getting there). We also like the basics- Bread, eggs, milk, frozen veggies. I find it refreshing to check out from Costco with bread, eggs, milk and the total is like $12. I always think they are not going to let me check out without a minimum $100.
The simple answer is they are awesome
In the socks-a-rockin' department, in shopping for my dream TV, I was asking Costco employees for help in navigating the system. And they were courteous, non upselling, and they knew what the hell they were talking about. Not that difficult to understand.
Every aspect of shopping there rocks. It's clean, it's affordable, staff are great and the products are just swell.
What I don't like is that some products come and go too soon, never to return.
If you know your prices, Costco can save you a lot of money. There are things there that I know are no cheaper than in stores, so I avoid those. But other items are definitely a bargain. The employees are competent and helpful.
Because quality(x)/cost(x) > 1 when x = costco.
Sorry. Just finished a math midterm.
Costco rocks on prices and service, and they are a socially responsible company that also happens treats their employees with respect and dignity...unlike that other place--the one that rhymes with Ham's Blub. Oh, and my sons love the pizza slices...
Their profit is definitely from the cafeterias they have attached, bless the Costco cafeteria! mmm.
Frito: Yah I know this place pretty good, I went to law school here.
Pvt. Joe Bowers: In Costco?
Frito: Yah I couldn't believe it myself, luckily my dad was an alumnus and pulled some strings.
and gas is like 30 cents cheaper there. best $50 i ever spent
Stores are clean, well-stocked, good coupon sales every couple of months. Tip: if the price sign has an asterisk on it, the item is on clearance and won't be carried anymore. Also, if you see something that you might want on an aisle endcap, better buy it - that's the stuff that moves the fastest.
I have a friend who has worked for Costco for about 10 years. He started at way above minimum wage, and has received excellent raises every year. He also gets great benefits, and is a very loyal and hard-working employee as a result.
I've used Costco.com a few times for items that weren't carried in the store, and have been very happy at how quickly my order was processed and shipped to me. I ordered something last weekend and had it yesterday (Tuesday).
+1 for socks rocked off. Never found a shop I like better.
These obscene profits need to be given back to the people.
But seriously, Costco is great. I got nice dress slacks for only 10 bux each. They would have cost at least $40 at Macy's.
@scoobydoo: If you like something and it disappears, put a suggestion in the suggestion box (they all have one in my experience) - I know several people who have talked about doing that and items coming back - you may not be the only one requesting.
Costco is the one and only thing I miss about the suburbs; I'm a little too lazy to take a shopping cart from Harlem to Bay Ridge or Queens.
It rocks my socks off... that is until I got pooped on by one of the birds living in their building. The bastards in the meat section didn't even try to help. Thought two nice old sample ladies bent over backwards and even got me a brand new towel and led me back to a sink to do a quick hair wash.
@ltlbbynthn: Their weird debit and AmEx only deal helps them keep costs down. AmEx discounts their transaction charges in return for being AmEx exclusive which = lower prices.
Also since you're new you may not know that paying an extra $50/year over regular membership gets you Executive membership. This gets you a 2% rebate at the end of the year on all your purchases and if the 2% rebate is less than the $50 executive membership premium, they will refund the difference. Win-win.
Costco is the only place they stock a certain brand of cheese.
The closest Costco is 4 hours a way. If anyone from Costco actually reads this they are freaking fools if they don't put on in the new east side mall development going in Sioux Falls. We have one Sams club in town that is terminally overcrowded all the time and Costco has way better selection. Costco over by Williams Sonoma and and the Super Target would rock.
After too many years of too loud music and flying noisy airplanes, I needed hearing aids. Costco was not on my list of places to check but on a trip there I wandered in . Long story short, I got top of the line hearing aids with incredible service for less than 1/2 of what the "well known" stores charged. Not pushy about the sale and continue to be a great service experience. Never know what goodness can be had at Costco. Only problem is that the rest of the month seems so long after a Costco visit....till I get paid again.
@theirishscion: Actually, to add some more signal to that bit of noise, I recognize (and am recognized by) staff when I go there today that I first saw when I joined back in 2001. Employee retention is always a good sign. The return policy rocks (mostly because the product is of good quality, returns are rarely required. I think I'm averaging maybe one return a year over the last 7 years, and I spend over $4K there annually.
The staff really seems engaged as well. I suspect it keeps coming back to that. I don't feel like I'm being gamed or manipulated. The staff is happy and well paid. The product is of high quality and very reasonably priced. The environment is clean and well lit and pleasant. The tire department just totally rocks. Oh, and the cafe. Damn good value for money, and those chicken bake things. Most addictive.
I have to agree, as a Sam's Club defector, once I got used to the subtle inventory differences I really like Costco a lot. Not a single complaint with the staff, the store or anything I've purchased there. PLUS I love their pre prepped food, monster caesar salads that keep me full at work allll day long.
Rock. Socks. Etc.
@EBounding: Of course they do return some of those profits (in what they pay their employees).
Sounds like a bunch of commie dirtbags if you ask me!
(/sarcasm)
I Just wish the Costco near me carried rechargable batteries.
I look for the stock to plummet just like aapl after their blow out quarter.
We've shopped there ever since we lived in Washingotn and shopped at the store in Kirkland. We're in Vermont now, and are lucky to be just about 1/2 hour away from the only Costco in the state (Colchester).
@DrGirlfriend: is right about checking prices against supermarkets and such. DVDs and CDs can be had cheaper at WalMart and the web, for example.
compare this thread to any mentioning sears or other retail... i think i need a cigarette after reading all the love.
-Lots of organic produce available. -Costco actually pays their people a living wage. -Employee retention is good, and they actually know what they are doing.
I wish they'd start stocking free-range eggs.
Plus, who doesn't love a store that sells caskets & other funeral-related items?
I loves me some Costco! Srsly.
Love Costco. Those cupcakes indeed rock my socks off, and then manage to put them back on for me.
I shop at Costco because they sell some pantry staples that I can't get anywhere else for anything near the price, most importantly Wyman's frozen wild blueberries (they're the only blueberries worth eating, AFAIC, and I use a lot of them in smoothies and desserts), Pacific chicken stock, and Dole pineapple chunks.
My only complaint is that Costco is about half an hour out of my way, so I only shop there every couple of months or so. If they were located more conveniently, I'd probably shop there even more.
I really wish I had a Costco nearby. All I have is a Sam's Club. Not too thrilled with them. My wife keeps bugging me to renew our membership.
I hope Costco comes to Oklahoma soon.
@Ciao_Bambina:
Never heard of the asterisk policy!
it's always been that if the price ends in 7¢, it's a clearance item.
Costco has you covered from cradle to grave - bought my wife's engagement diamond at Costco. Bought diapers at Costco. And my mother-in-law showed me that they sell caskets at costco.com. Crazy!
Seriously, Costco rocks for gasoline, foodstuffs, luggage, clothing basics. The house-brand ("Kirkland Signature") is generally high quality. I'm impressed that they are adding some organic foods. (Organic Kirkland Signature Peanut Butter!) They often have good luxury items like purses, wallets, watches. Not bad for consumer electronics. But I shop elsewhere for computers because of the lack of selection.
And that's the rub with Costco: they have top-notch items with good to great prices but little selection. If you're picky about brands or models, you're probably better off shopping elsewhere.
I like the chicken bakes...mhmmm chicken bakes.