Costco plans to open more than a dozen new locations in fiscal 2025.
“For this fiscal year, we expect to open 27 new warehouses, including three relocations for a total of 24 net new buildings,” CEO Ron Vachris said last week during the warehouse retailer’s third-quarter earnings call.
Costco’s global warehouse count will reach 914 by the end of the fiscal year, the Costco CEO told analysts and investors.
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The company is looking to launch 10 Costco locations in the fourth quarter.
Among those will be Costco’s second warehouse in Sweden, its 20th in South Korea and its 110th in Canada, according to Vachris.
The retailer opened nine warehouses “including a relocation in Melbourne, Australia, our 37th warehouse in Japan and seven net new U.S. locations” since it held its March 6 earnings call, he said.
As of mid-May, the company’s retail footprint spanned 905 warehouses around the world, including 624 in the United States and 281 in other countries, according to its latest quarterly financial report.
Costco stocks approximately 4,000 items in its warehouses. Its locations also often offer “ancillary” businesses such as gas stations, pharmacies, food courts, optical centers and tire installation centers.
The retailer extended the hours of its North American gas stations a few months ago, leading to an increase in revenue.
Costco had “two of our all-time highest gallon weeks” in the U.S. in April, due to a “combination of expanded gas station hours, new gas station openings and lower prices at the pump,” according to Vachris.
He also said the company continues to pursue various ways to “improve the member experience” at the retailer’s warehouses, telling analysts and investors to “be on the lookout for several new technology pilots we are focusing on to help our members check out through our front end at a faster pace.”
Costco recently “engaged in some ‘Scan & Go done by Costco’ kind of tests” at some warehouses, according to Vachris.
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The technology, he said, has “been extremely successful in moving people through the lines, expediting the transactions.”
Costco believes digital and technology are “important parts of our future growth” so it has been “investing to improve the member experience,” according to the CEO.
In mid-May, the company started letting U.S. customers pay for large online purchases with buy now, pay later options through a new partnership with Affirm.
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With the buy now, pay later service, approved Costco members can “pay over time” for eligible $500 to $17,500 purchases they make on the warehouse retailer’s website, Affirm said at the time.
Costco has been “pleased with the initial sales results” of that new offering, Vachris said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE CORP. | 1,014.94 | +4.13 | +0.41% |
