Historical breakdown of Costco’s operating income from membership fees vs. merchandise sales. While membership fees have grown steadily over the past decade, merchandise sales profits have surged since 2020 and now contribute nearly as much to operating income.
Data: Costco annual reports.
Tools: Python
Meaning that they are selling more, or have higher margins?
Basically, it was said that Costco made money on membership sales. However, they’re more traditional now with profits coming from selling items at profit.
Hot dogs and pizza at the food court steady sales increase. Coincidence? I think not.
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Historical breakdown of Costco’s operating income from membership fees vs. merchandise sales. While membership fees have grown steadily over the past decade, merchandise sales profits have surged since 2020 and now contribute nearly as much to operating income.
Data: Costco annual reports.
Tools: Python
Meaning that they are selling more, or have higher margins?
Basically, it was said that Costco made money on membership sales. However, they’re more traditional now with profits coming from selling items at profit.
Hot dogs and pizza at the food court steady sales increase. Coincidence? I think not.
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