Costco Reports Declines in eCommerce and Discretionary Sales in April

At Costco, eCommerce and discretionary items saw declines in sales in April.

During the four weeks that ended April 30, the membership warehouse club recorded a year-over-year increase in total sales of 1.4% but a decline in eCommerce sales of 5.9%, according to a Wednesday (May 3) press release.

Over a longer period — the 35 weeks ended April 30 — Costco’s comparable total sales were up 4.1% while its eCommerce sales were down 7.6%, according to the release.

In terms of product categories, food and sundries saw growth in the high single digits, with bakery and produce being among the better performers, Costco Assistant Vice President of Finance and Investor Relations Josh Dahmen said in a pre-recorded message posted in conjunction with the release.

As PYMNTS reported April 17, members-only club stores like Costco have reported strong growth recently as consumers look for more affordable grocery and dining options amid inflation.

Costco said during a quarterly earnings call in March that its fresh food assortment has helped reach members even as consumers reduce spending on big-ticket items.

“If you do a little homework on the cost of processing and selling a rotisseries chicken, our $4.99 price, we maintain, is an investment in low prices to drive membership and to drive sales in a big way,” Costco Chief Financial Officer Richard Galanti said at the time.

In Costco’s April sales results, non-foods saw a decline in the low single digits. Here, the better performing departments included tires, automotive, and health and beauty, while the underperforming departments were home furnishings; majors, primarily consumer electronics; and jewelry, Dahmen said in the pre-recorded message.

Ancillary business sales were down mid-single digits, with food court, pharmacy and optical being the top performers, and gasoline underperforming due to the lower average price per gallon during the month, according to the message.

As PYMNTS reported on April 28, economic data shows inflation still threatens discretionary spending.

Although inflation is cooling, its stubborn retrenchment is leading consumers to reconsider where and even whether to spend their dollars.

Amazon Chief Financial Officer Brian Olsavsky said in April that consumers are stretching their budgets, coping with an uncertain economic environment and moderating their spending on discretionary categories, shifting to lower-priced items.