Bond.az - Costco Wholesale reaped the benefits of surging gas prices as more consumers sought its lower-priced fuel, helping it beat market expectations for third-quarter U.S. sales.
While Walmart beat sales expectations last week but warned of stressed consumer spending due to inflation, Costco painted a picture of budget-conscious shoppers flocking to its membership warehouse as price anxiety rises.
CEO Ron Vachris said the final five weeks of the quarter were Costco's highest ever in sales volume.
Gas prices exceeding $4 per gallon, rising as the Iran War drags on, drove many members to use Costco's gas stations for the first time.
The company lowered gas prices to drive volume. CFO Gary Millerchip said: 'We've widened our gaps in terms of price. We know that's something very high on our members' minds.'
The uptick in fuel fill-ups could boost Costco's bottom line, as members who use its gas stations typically spend more in warehouses.
