Since I just posted a story about how supermarkets have gained market share against warehouse clubs for grocery sales in the U.S. last year, and how the growth of warehouse clubs is slower than the growth of supermarkets, it makes perfect sense for me to now post a story on Costco’s aggressive growth plans.
To wit, Costco announced last week that it expects to open 150 new warehouse stores over the next five years, including 28 this year. Of the 150 stores, though, only 55 would be in the U.S. About half would be in-fill locations and half would be in new markets.
The 28 stores this year include 19 already open. The remaining nine stores will be in the U.S. (3), Japan (3), and one each in the United Kingdom, Taiwan and Australia.
Costco’s third quarter ended on May 12, and the company announced that net income rose 18.9% to $459 million on sales of $23.6 billion, which represents a 7.8% increase as compared to the same period a year ago. Costco EVP and CFO Richard Galanti said in an earnings call last week that gas accounts for about 10.5% of Costco’s sales.