inStorebuyer - December 2011 - (Page 34)

03 Costco Rising fuel costs, higher commodity prices and increasing international market demand for food are pushing food inflation higher and higher. As a result of the economic pressures, the number of trips shoppers make to buy groceries plunged to 1.69 trips per week, its lowest level in the history of the Food Marketing Institute’s annual U.S. Grocery Shopper Trends report released this year. People shopping for groceries only once a week rose from 29 percent to 34 percent and those shopping once every other week increased 8 points to 20 percent. Shoppers spend an average of $97.30 per week on groceries in 2011, more than three-quarters of it at their primary store. Nine in 10 shoppers visit a full service supermarket at least once a month. Nearly 60 percent visit a supercenter once a month, followed by warehouse club stores (27 percent). Costco is leveraging this trend to increase customer traffic and sales. Costco recently announced its operating results for the 52 weeks (fiscal year) ended Aug. 28, 2011, and its plans for membership fee increases. Net sales for the fiscal 2011 fourth quarter were $27.59 billion, an increase of 17 percent from $23.59 billion in the 16-week fourth quarter of fiscal 2010. Net sales for the 52-week fiscal year 2011 were $87.05 billion, an increase of 14 percent from $76.25 billion last year. Annual Sales: $76.3 billion Number of Stores: 592 Store Banners: Costco Address: 999 Lake Drive, Issaquah, WA 98027 Phone: (425) 313-8100 Web: www.costco.com Key Personnel: Sue McConnaha, vice president; director, bakery operations Costco currently operates 592 warehouses, including 429 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, nine in Japan, eight in Taiwan, seven in Korea, and three in Australia. The company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www. costco.ca in Canada. The company plans to open up to seven additional warehouses (including one relocation) in the next three months of fiscal 2012, prior to the end of calendar year 2011. Costco also announced that effective Nov. 1 it will increase annual membership fees by $5 for U.S. Goldstar (individual), Business, Business add-on and Canada Business members. With this increase, all U.S. and Canada Goldstar, Business and Business add-on members will pay an annual fee of $55. Costco is gaining ground by establishing itself as a destination for shoppers. The FMI’s Trends survey found that two thirds of respondents (67 percent) say the number one reason they bypass the closest store was to seek lower prices. Another important factor in selecting a primary store was great selection and variety cited by 23 percent of shoppers. | 34 | inStorebuyer | December 2011 | http://www.costco.com http://www.costco.ca http://www.costco.com

Table of Contents for the Digital Edition of inStorebuyer - December 2011

inStorebuyer - December, 2011
Editor's note - The Road Ahead
Contents
Dobla’s Executive Pastry Chef Wins World Chocolate Masters
Ultimate Cake Decorating Competition Winners
Dawn Busy Bakery - Busy Bakery Video Contest
America’s Best Raisin Bread Contest
CSM Announces Leadership Change
Dawn Busy Bakery - Bakery Trends Overview
C-Stores Gains
The Road Ahead
European Vacation
Bakery of the Year - Schnucks
Deli of the Year - Publix
Local Makeovers
Walmart
Kroger
Costco
Safeway
Supervalu
Publix
Ahold
Delhaize
H-E-B
7-Eleven
Meijer
BJ's Wholesale
Whole Foods Market
Trader Joe's
A&P
Hy-Vee
Winn-Dixie
Wegmans
WinCo
Stater Bros
Price Chopper
Schnuck Markets
Brookshire's
United
Balls Food
Product Trends
Product Showcase
Ad Index
Donut Time

inStorebuyer - December 2011