The coronavirus pandemic has customers spending more on groceries, and stores are benefiting. Costco sure is, and experts think the increased sales will pay off for the wholesale chain for years to come.
Fans of the store loved the low-priced bulk items before the start of stay-at-home orders, but this year has been a big one. Sales in July went up 8.8%, which amounted to $149.66 billion, according to Market Watch. So what is the company going to do with all these additional sales? Analysts say there could be a lot of new stores soon.
Costco could "increase its U.S. store base by more than 400 warehouses or about 75% over time," one expert told Barron's, adding that "we view Costco's unit growth as an incremental driver for the company, helping it further expand its total wallet share and buying scale in the U.S."
Adding 400 warehouses would almost double the current amount. In the U.S. and Puerto Rico, 543 locations offer the discounted products beloved by so many (including this essential cleaning supply people are running to the store to get). There are already five stores and two delivery centers set to open before September is over.
Considering they went from around 600 stores in 2011 to almost 800 in 2018, experts say an expansion double that size in less time would be an excellent reason to get involved in the brand if you haven't yet. One way is through the stock market. Yep, if you're thinking about buying a stake in the wholesale giant, now is the time.
Analysts also think Costco could expand their international presence thanks to the increased sales this year. As of January, there are almost 250 warehouses outside of the U.S.
Overall, it is a good time to be a member. Here are 30 Cheap Costco Buys That Make the Membership Worth It.