Bad economy is good for wholesale
US club retailer Costco Wholesale Corp., has reported double-digit sales increases for March. It seems that the difficult economic climate in the US is prompting many consumers to explore the benefits of warehouse shopping. The retailer saw US$6.57 billion in net sales for the five weeks ended April 6, an increase of 11% from US$5.93 billion during the same period last year. For the year-to-date ending April 6, net sales were US$41.34 billion, up 12% from US$36.96 billion last year.
Costco operates 536 warehouses, including 392 in the United States and Puerto Rico, 75 in Canada, 19 in the United Kingdom, six in Korea, five in Taiwan, eight in Japan, and 31 in Mexico. It plans to open an additional 14 to 15 new warehouses (including the relocation of four to five warehouses to larger and better-located facilities) prior to the end of its 2008 fiscal year on August 31.
