Costco closes in on $5 billion in annual web sales
05.10.2015 314 views
Costco, No. 11 in the Internet Retailer 2015 Top 500 Guide, broke out final earnings for the 2015 fiscal year. While comparable sales for its 686 warehouses grew 1%, the web grew 20 times faster and accounted for about 22% of the growth in net sales. Those metrics are about in line with increases Costco has recorded in previous years.
In the past year Costco continued to expand its inventory online, chief financial officer Richard Galanti told Wall Street analysts Thursday on the year-end earnings call. Costco also sees growth in its e-commerce channel as consistent. “We’re pleased with the fact that sales for the last two, three years, at least, (web sales) have been on a year-over-year comparable basis around 20%,” Galanti told analysts according to a transcript on SeekingAlpha.com. “We’re doing it methodically and we’re not going to go crazy out there.”
Costco continues to add more basic items to its web inventory, Galanti told analysts. “We certainly expanded to some extent the SKU selection and added what I would call more frequently purchased items, be it food and sundries or a few office needs, everything from, again, sundry items to health and beauty aids, K-cups, [a] few apparel items,” he told analysts. “And so we’ve expanded that. We took certain key departments and brought them online.”
Despite its classification as a mass merchant in the Top 500 Guide, Costco.com is not trying to become “all things to all people,” Galanti said. “We’re recognizing that we can’t be everything to everybody, that’s not what we do for a living but we have great value,” he told analysts.