Costco Demand & Renewal Mentions Show Retention

We've been officially Bullish on Costco for a month, and data continues to support this outlook.

Our February alert cited accelerating Purchase Intent growth, consumer happiness normalization (after Covid-demand struggles), and digital tailwinds like grocery delivery.

Costco releases monthly sales results, so the company has a knack for stealing our typical edge.

Yesterday it released January sales results highlighting exactly what we expected:

• Sales increased across the board: +15.7% (accelerating vs. the 22 week growth rate of 14.7%).
• eCommerce is booming: +105% YoY (vs. +78.9% in the 22 week period).

Heading into Earnings, one edge we DO have is related to retention. LikeFolio mentions of Costco Membership Renewal have increased +61% YoY.

Costco is also testing curbside grocery pickup...something we'll be closely tracking in 2021.