Furniture demand reduces at wholesale group Costco

The UK division of US wholesale group Costco has reported a growth in turnover as sales climbed beyond £4bn.

According to its latest filed accounts for the year ended 28 August 2022, total sales rose 17.1% to £4.1bn from £3.5bn in 2021. Pre-tax profit resulted at £120.8m, up 32.3% compared to £91.3m recorded the previous year.

Costco, which trades through 29 UK warehouses and online across multiple departments including home furnishings, said sales were driven the return to ‘normalcy’ following the pandemic, with customers increasing their shopping frequency at its warehouses.

Within its merchandise category, which includes furniture, Costco said that members reduced spend on items such as furnishings, gardening and exercise equipment.

Within its two main divisions, its online platform reported flat sales of £255.7m from £255.6m – following its surge of growth last year where sales rose 69%. Pre-tax profit resulted at £664,000, down from £8m the prior year. As for its warehouse division, sales rose 18.2% to £3.9bn from £3.3bn, with pre-tax profit resulting at £120.5m, jumping from £83.7m the previous year.

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