Costco's same-store sales rose 9.8% during its third quarter, beating Wall Street's expectations, as gasoline demand at its warehouse locations hit record levels, according to MarketWatch.
Shoppers appear to be turning to Costco's gas stations in greater numbers as consumers look for ways to stay ahead of potential future price increases at the pump. Costco has long offered fuel to members at prices below the market average, a benefit that becomes more attractive when gas prices rise or when drivers expect them to rise.
The third-quarter results reflect a pattern seen at other membership retailers, where uncertainty about energy costs is pushing consumers toward clubs that offer discounted fuel as part of their membership value. Costco's model, which requires an annual fee for access to its warehouses and gas stations, gives the company a built-in advantage when fuel savings become a priority for households watching their budgets.
The 9.8% same-store sales growth figure exceeded what analysts had projected for the quarter. Same-store sales measure revenue at locations open at least a year and are considered one of the cleaner indicators of underlying consumer demand because they strip out the effect of new store openings.
Gasoline sales contributed a notable portion of the quarterly growth. Costco's fuel operations draw long lines at many of its locations under normal conditions, and record demand suggests that trend accelerated during the quarter.
