Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  Costco Wholesale Corporation    COST

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Costco Wholesale : , With an Eye on Amazon, Expands Home Delivery Service

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/06/2017 | 12:15pm CEST
By Sarah Nassauer 

Costco Wholesale Corp. is expanding its home delivery services as food becomes an increasingly competitive front in the e-commerce battle.

This week Costco started offering two-day delivery on shelf-stable food from its own website and expanded a fresh-food delivery partnership with Instacart, a startup that delivers groceries from retailers in one day. Both services let Costco members buy food online at lower prices than available under previous options, said Richard Galanti, the company's chief financial officer.

The moves are a departure for Costco. The company has been slow to embrace online shopping as its members tend to spend more when they visit its cavernous stores.

"At the end of the day we would love you to just come in and buy and take it home," Mr. Galanti said. But, he added, "we would rather lose it to ourselves" than have other online retailers grab the business.

Costco's share price has fallen 7.2% since Amazon.com Inc. announced it would buy Whole Foods in early June.

Investors have worried that Costco's core, high-income customers overlap with Whole Foods' shopping base and could be picked off by Amazon's efforts to lower prices.

Analyst and media reports of Whole Food's price drops are overblown, said Mr. Galanti. "We [check prices at] Whole Foods twice a week in many, many markets around the country and we're kind of scratching our head," he said. Costco has seen no sign that shoppers are defecting, he said.

In recent years, Costco's business has fared better than many retailers, some of which are reporting shrinking sales and deep losses. On Thursday, the company said sales in existing stores rose 6.1% in the latest quarter and 4.1% for the fiscal year ended Sept. 3.

Profit margins in the fourth quarter fell slightly as Costco spent more to lower prices on some items and sales of low-margin gas made up a higher percentage of its business, Mr. Galanti said. Net income was $919 million in the period, which was a week longer than the year-ago period, in which it earned $779 million. Sales were $41.39 billion.

The new Costco.com delivery service, dubbed CostcoGrocery, will offer free shipping on around 500 products for orders of at least $75. Its Instacart partnership will sell around 1,700 grocery products like eggs, meat and fruit, with free same-day delivery on orders of at least $35.

Both Costco.com and Instacart previously sold some Costco groceries, but only at higher prices. Prices under the new services will still be higher than available in stores.

Grocers have long struggled to make food delivery profitable. Recently retailers have expanded their efforts, aiming to outmaneuver Amazon, which delivers groceries to most metro areas in the U.S.

Earlier this week Wal-Mart Stores Inc. said it acquired Parcel Inc., a small New York-based delivery startup that specializes in fast home delivery. The retailer plans to use Parcel to deliver groceries and other merchandise to New York City residents, Wal-Mart said.

Write to Sarah Nassauer at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on COSTCO WHOLESALE CORPORATI
12:04p COSTCO WHOLESALE : NEW Management's Discussion and Analysis of Financial Conditi..
10/17 RITE AID : 4 SLO stores found in violation of city's Styrofoam ban
10/16 COSTCO WHOLESALE : Perusing the warehouse store, one free sample at a time
10/16 COSTCO WHOLESALE : EnWave Announces Trial Launch of Moon Cheese into American Co..
10/15 COSTCO WHOLESALE : A world of cash in end of world; Even Costco, with $1K kit, c..
10/15 COSTCO WHOLESALE : Seeking to survive a disaster? Costco sells a $1,000 food kit..
10/13 COSTCO WHOLESALE : expands delivery options
10/13 COSTCO WHOLESALE CORPORATION : Earnings Review and Free Research Report: Costco'..
10/12 COSTCO WHOLESALE : RAISING CHICKENS AND SOME CONCERNS Debate over Costco project..
10/12 COSTCO WHOLESALE : Farmer invests in poultry, future
More news
News from SeekingAlpha
10/16 EDITORS' PICKS DAILY : Investors Overhyping Amazon-Whole Foods, REIT Picks & Wee..
10/16 Don't Believe The Hype
10/16 Rumors Of Suburban Demise Are Greatly Exaggerated
10/16 INVESTED CAPITAL TURNS : Explanation And Examples
10/16 WALL STREET BREAKFAST : Catalonia - Independence Or Not?
Financials ($)
Sales 2018 137 B
EBIT 2018 4 452 M
Net income 2018 2 813 M
Debt 2018 1 339 M
Yield 2018 1,30%
P/E ratio 2018 24,70
P/E ratio 2019 22,48
EV / Sales 2018 0,52x
EV / Sales 2019 0,48x
Capitalization 69 244 M
Chart COSTCO WHOLESALE CORPORATI
Duration : Period :
Costco Wholesale Corporati Technical Analysis Chart | COST | US22160K1051 | 4-Traders
Technical analysis trends COSTCO WHOLESALE CORPORATI
Short TermMid-TermLong Term
TrendsBearishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 29
Average target price 178 $
Spread / Average Target 13%
EPS Revisions
Managers
NameTitle
Walter Craig Jelinek President, Chief Executive Officer & Director
Hamilton Evans James Chairman
Roger A. Campbell Senior Vice President- International Operations
Richard A. Galanti CFO, Director & Executive Vice President
Paul G. Moulton Chief Information Officer & Executive VP
Sector and Competitors
1st jan.Capitalization (M$)
COSTCO WHOLESALE CORPORATION-0.16%69 244
WAL-MART DE MEXICO S A B DE C V18.68%40 695
TARGET CORPORATION-15.76%32 867
DOLLAR GENERAL CORP.11.48%22 435
DOLLARAMA INC42.77%12 628
DON QUIJOTE HOLDINGS CO LTD6.59%6 492