Headquartered in Issaquah, WA, Costco is a membership warehouse club, dedicated to bringing our members the best possible prices on quality brand-name merchandise.

Table of Content

Incisiv Digital Performance Rank About Costco Financial Year 2021: Key Takeaways Current Quarterly Performance Digital Timeline
 

Incisiv Digital Performance Rank

Overall Rank: Leader
Research & Discovery: Leader
Online Ordering: Leader
Fulfillment: Leader
Service: Challenger

 

About Costco Wholesale

Headquartered in Issaquah, WA, Costco is a membership warehouse club, dedicated to bringing our members the best possible prices on quality brand-name merchandise.

Number of warehouses: 830 

Source: Corporate Profile

 

Financial Year: Key Takeaways

2022
  • The 52-week fiscal year's net sales increased by 16%, coming to $222.7 billion
  • The 52-week fiscal year's net income increased by 17% to $5.8 billion
  • Membership fee revenue climbed 9% to $4.2 billion
  • In fiscal 2022, our eight e-commerce websites increased their sales by 10% globally, following a 44% rise the previous year

Source: Annual Report

2021
  • Net sales increased by 18% to $28,832
  • Comparable sales increased 16% during 2021 and were positively impacted by increases in shopping frequency and average tickets
  • Membership fees increased by 9% which is driven by sign-ups and upgrades to Executive membership 
  • As a percentage of net sales, SG&A expenses decreased by 40 basis points as compared with 2020
  • The effective tax rate was 24% as compared to 24.4% in 2020
  • Costco paid a special cash dividend of $10.00 per share in December 2020 and in April 2021, increased the quarterly cash dividend from $0.70 to $0.79 per share totaling $5,748

Source: Annual Report

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Digital Timeline

2022
  • Costco operates 8 e-commerce websites which witnessed a comparable sales growth of 10% globally, including inflation
  • In 2022, e-commerce net sales accounted for about 7% of overall net sales
  • Members have the choice to digitally buy a broader selection of products straight from vendors through Costco Next at a great value
  • Between 10,000 and 11,000 SKUs are typically offered by Costco online, some of which are accessible in its warehouses as well

Source: Annual Report

2021
  • Costco operates 8 e-commerce websites where comparable sales grew by 44% over the previous year
  • Important advancements achieved in the online business includes reduced costs associated with picking items, the addition of frozen grocery 2-day deliveries, and technology enhancements including a streamlined COVID-19 vaccine scheduler
  • The Company produces and distributes proprietary shop cards that never expire and may be redeemed for items or membership at the warehouse or online

Source: Annual Report 2021

2020
  • Net sales for e-commerce represented approximately 6% of total net sales in 2020 
  • Our e-commerce business has also benefited, as more members have shopped online during the pandemic 
  • The Company produces and distributes proprietary shop cards that never expire and may be redeemed for items or membership at the warehouse or online

Source: Annual Report 2020

2019
  • Net sales for e-commerce represented approximately 4% of total net sales in 2019 
  • The Company produces and distributes proprietary shop cards that never expire and may be redeemed for items or membership at the warehouse or online
  • Pickup lockers allow members to purchase certain merchandise online which are to be picked up at the warehouse

Source: Annual Report 2019

2018
  • Costco offers business delivery, travel, and other services online in certain countries 
  • Net sales for e-commerce represented approximately 4% of total net sales in 2018

Source: Annual Report 2018

2017
  • Net sales for the online business were approximately 4% of the net sales in 2016
  • Costco Online businesses rely on the secure transmission of encrypted confidential information over a public network which includes information permitting cashless payments 
  • The evolution of retailing in online and mobile channels has improved the ability of customers to comparison shop with digital devices which offers enhanced competition
  • For an enhanced online shopping experience, Costco made a few improvements in merchandise offerings, site functionality, search capability, checkout, and delivery times
  • Two exciting online offerings were introduced with the launch of Costco Grocery which is a two-day delivery on dry grocery items, and a same-day delivery offering both fresh and dry grocery items through partnering with Instacart 

Source: Annual Report 2017

2016
  • Costco’s online businesses provide its members with additional products and services 
  • Net sales for the online business were approximately 4% of the net sales in 2016

Source: Annual Report 2016

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Costco Continues To Thrive Despite A Challenging Business Environment

Through the years, Costco has kept its mission the same - to provide its members with quality goods and services at the lowest prices. With this mission, Costco continues to thrive despite a challenging business environment.