Costco October Sales Surge Driven by Gas Prices and Increased Basket Size
Costco reported strong performance for October, with net sales rising 12.6% to $24.50 billion. A significant driver of this growth was the company's gas business; average selling prices per gallon jumped 35.5% year-over-year, while comparable gallons grew at a high-single-digit pace. Bank of America analysts noted that gas and currency fluctuations accounted for approximately one-third of the reported comparable sales growth. While shopper traffic growth slowed slightly to 4.1%, the average transaction size increased, indicating larger shopping baskets. Beyond fuel, Costco saw strength in ancillary services like pharmacy and hearing aids, as well as non-food categories including gift cards, sporting goods, and housewares. The expansion of same-day delivery partnerships with DoorDash and Uber Eats is expected to provide further tailwinds for digital sales growth.