There were so many great stories this past week. My favorite might have been the one on the US saving(s) rate.
But this one, mentioned in passing is another story, also huge. Due to the pandemic, Costco reported: less food spoilage; Costco cashing in, The WSJ;
After stockpiling early in the coronavirus pandemic, Americans continue to turn to Costco Wholesale Corp. to buy bulk quantities of groceries and cleaning supplies.
They have also been loading carts with home furnishing.
“As people are spending less on travel and dining out they seem to have redirected some of that spending,” said Costco financial chief Richard Galanti on a conference call Thursday.
The warehouse retailer reported a 14.1% jump in comparable sales for the quarter ended August 30, 2020, excluding gas and currency effects.
On that basis, Costco’s growth was nearly twice as high as the spring quarter when it was struggling with out-of-stock items and placed limits on shoppers.
“We expected fresh food,” paper goods and other items already selling well early in the pandemic to continue selling, Mr. Galanti said, “but we were a little surprised in the strength in some of these nonfood, discretionary categories,” such as homegoods and furniture. Food is selling so fast that profit got a boost from the lack of loss due to spoilage, he said. In-stock levels have stabilized, but some items are still hard to come by in some areas, including disposable gloves and sanitizing wipes, said Mr. Galanti.
Halloween-related sales are weaker, with a “small reduction in the amount of costumes,” he said. Some people are booking travel through the company again, but mostly for far in the future, Mr. Galanti said.
Much more at the link.
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