Revenue Streams

Membership Fees

• Revenue: $1.166 billion, up 7.8% year-over-year.
• Growth Drivers:
  • Increased membership base with digital sign-ups.
  • Executive memberships representing 46.8% of paid members and 73.1% of worldwide sales.

Product Sales

Food Sales

• Comparable Sales Growth:
  • 5.2% overall.
  • 7.2% excluding gas deflation.
• Trends:
  • Shift from food away from home to food at home.
  • Strong sales in premium and lower-priced items.

Non-Food Sales

• Categories: Hardware, home furnishings, sporting goods, gift cards, health and beauty, etc.
• Growth:
  • Double-digit growth year-over-year.
  • Notable performance in hardware, sporting goods, gift cards, and home furnishings.

E-commerce Sales

• Growth:
  • 13% year-over-year.
  • 13.2% adjusted for foreign exchange (FX).
• Market Share:
  • Represents 7-8% of total sales.
  • Over 10% when including third-party sites like Instacart and Uber Eats.
• Performance Metrics:
  • Increased app downloads (2.9 million in the quarter, total ~42 million).
  • Higher conversion rates and average order values.

Retail Media

• Status: Early stages of development.
• Performance:
  • First targeted media campaign achieved 2-3x return on ad spend.
• Partnerships: Working with over 25 suppliers for off-site campaigns.
• Growth Focus:
  • Incremental opportunity to drive growth and member engagement.

Costco Next Marketplace

• Description: Exclusive member-only marketplace curated by Costco buyers.
• Performance:
  • Achieved record sales during Thanksgiving, Black Friday, and Cyber Monday.
• Future Trends: Expansion and enhancement of marketplace offerings.

Co-brand Credit Card Program

• Impact:
  • Positive contribution to gross margin.
  • Funds a portion of rewards paid to members.
• Performance:
  • Favorable impact on margins, offsetting headwinds from other areas.

Performance of Various Revenue Lines

Future Trends in Revenue Performance

E-commerce Expansion

• Investment: Continued enhancements in technology and platform capabilities.
• Growth Expectation: Sustained double-digit growth as digital penetration increases.
• Initiatives: Improved user experience, expanded product offerings, and integration with third-party services.

International Growth

• Expansion Plans:
  • Opening 30 new warehouses annually.
  • Focus on Canada, Mexico, Europe, and Asia.
• Growth Drivers:
  • Strong performance in existing international markets.
  • Incremental business from new warehouse openings.

Retail Media Development

• Scaling: Increasing the number of supplier partnerships.
• Impact: Enhanced member engagement and incremental revenue through targeted advertising.
• Strategy: Leveraging retail media to drive both member and supplier value.

Private Label Growth

• Penetration: Kirkland Signature reaching 33% of sales in the US.
• Expansion: Continued growth in private label offerings to enhance value and margin.
• Strategy: Focusing on high-quality, value-driven products to attract and retain members.

Digital Business Enhancement

• User Experience: Ongoing improvements in search functionality and mobile app inventory access.
• Growth Drivers: Higher app downloads, increased traffic, and better conversion rates.
• Future Initiatives: Continued investment in digital infrastructure to support growth and member needs.

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Note: The analysis is based solely on the provided context and may not capture all aspects of COSTCO WHOLESALE CORP's revenue streams and future trends.