Costco Sees Net Sales Decline In April Due To COVID-19 Restrictions
Wholesaler Costco has reported a 1.8% year-on-year decline in net sales to $11.39 billion in the four weeks ended 3 May 2020.
The company attributed this decline to reduced store traffic and sales due to stay-at-home orders, social distancing restrictions, and few mandatory closures in wake of the COVID-19 pandemic.
The company’s overall comparable sales declined by 4.7% during this period with Canada reporting an 11.7% fall.
In the US comparable sales fell 3.3%, while other international markets saw a 4.6% decline.
However, the company's e-commerce division reported an 85.7% jump in comparable sales in the four week period.
Costco’s net sales for the 35 weeks ended 3 May grew by 7.8% to $107.64 billion from $99.89 billion in the same period last year.
The overall comparable sales for the period increased by 6.1%, while e-commerce saw a 29.4% growth.
In the US and Canada, comparable sales grew 6.7% and 3.4% respectively, while other international markets saw a 5.7% growth.
Earlier this week, the company decided to limit the number of beef, pork, and poultry products sold to customers due to coronavirus-induced supply disruptions.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.