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Costco is making its products available on the DoorDash marketplace nationwide. This follows a similar rollout of Uber Eats delivery earlier this week. Members can now order groceries and household goods through the app for same-day delivery, giving them more ways to shop without visiting a warehouse.
This move helps the company defend its turf against digital rivals. While most of its profit comes from annual membership fees, keeping those members loyal requires making the shopping experience as convenient as possible. By plugging into existing delivery networks, the company can offer fast shipping without the high cost of building its own delivery fleet from scratch.
Source: Business Wire
Costco is expanding its partnership with Uber Eats to 47 states, up from just 17 previously. This move allows members to order groceries and household items for delivery from nearly 600 warehouse locations.
This is a smart way for Costco to grow its digital sales without building its own delivery fleet. While the company usually relies on shoppers visiting in person to discover new items, offering more delivery options helps it compete with rivals like Amazon and Walmart for members who value convenience.
Source: CNBC
Retail sales in the US grew more than expected in August, with 12 out of 13 categories showing gains. Much of the growth came from back-to-school shopping, showing that people are still spending even as gas prices rise.
This is a good sign for Costco, which relies on steady consumer spending to drive volume through its warehouses. When shoppers feel confident enough to keep spending despite higher costs at the pump, it generally supports the high membership renewal rates that provide most of Costco's profit.
Source: Bloomberg Markets and Finance
Costco is scheduled to share its quarterly numbers on Thursday, September 24. Analysts are looking for revenue of about 94.8 billion dollars and profit of 6.55 dollars per share. The focus will likely be on membership renewal rates, which have stayed above 90 percent and drive the bulk of the company's profit.
The company has raised prices on motor oil and restricted members to buying just two units a week. This comes as global oil prices climb following the closure of a major pipeline in Saudi Arabia. While these specific limits are narrow, they show how Costco manages its inventory when what it pays for goods starts to swing wildly.
Source: CNBC
Management has a long record of setting conservative targets and clearing them by a thin margin. This makes their forecasts highly reliable for planning, even if they rarely surprise with a massive jump.
| Expectation | |
|---|---|
| EPS | $6.53 |
| Revenue | $94.86B |