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Costco to ramp up openings, capital spending

Costco to ramp up openings, capital spending

During a conference call a couple weeks ago to discuss earnings, a Costco executive said the company plans to open 27-30 new stores next year, the most since 2007. Along with the openings, capital spending is expected to grow to nearly $2 billion, compared to $1.5 billion spent in the fiscal year that ended on September 2, 2012.

In the recently completed fiscal year, Costco opened 16 warehouses, 10 of which were in the United States.

Regarding the company’s earnings, net income increased 16.9% from the previous year to $609 million. Sales increased 14.2% to $31.5 billion, and comparable sales (excluding gas and foreign currencies) rose 6%. Costco’s strongest comps were in deli and produce, with overall comps strongest in the Northwest and Midwest.

Average sales per location rose 7% to $154 million in fiscal 2012.