Costco's sales fell for the first time in a decade
Monthly sales dropped in April as panic buying slowed
Costco has recorded a monthly decline in sales for the first time in a decade. In the midst of social distancing and the fallout of the covid-19 pandemic, the wholesale store saw a drop in monthly sales in April for the first time since July 2009.
Costco released its monthly sales report, saying that net sales were down 1.8% last month compared with last year.
According to Fox, the company said: “April sales were negatively impacted by covid-19.” Costco cited stay-at-home orders, social distancing restrictions, and some mandatory store closures for the lower sales. There has also been a reduced service in areas like the food courts and optical departments.
"Limited service in Travel and our Food Courts; closures of most of our Optical, Hearing Aid and Photo departments, and lower volume and price deflation in our gasoline business negatively impacted our April sales by an estimated 12 percentage points, of which approximately 70 percent related to gasoline," the company continued.
Many retailers, including Target, Walmart and Costco saw a massive increase in sales and foot traffic in February and March - as many customers stocked up on groceries and essentials, with others panic buying, as the virus spread. Traffic then began to slow towards the beginning of April.
Costco announced that many of their store locations are going back to normal operating hours as of this week.
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