Costco Sees Surge in Luxury Goods Sales Amid Affluent Demand

Costco's chairman, Hamilton 'Tony' James, revealed that the retailer has successfully tapped into the luxury goods market, regularly selling high-end products such as Rolex watches, gold bars, and even Porsches, which sold out within a week at a Seattle location. He noted that while many shoppers are average-income earners, an increasing number of affluent members are driving demand for these items, allowing Costco to offer remarkable deals. The company has positioned itself uniquely by limiting its inventory to about 3,400 SKUs, contrasting with competitors like Walmart, which carry significantly more. James emphasized that Costco aims to provide quality products at competitive prices rather than simply discounting low-end items. He highlighted the impressive sales figures, noting Costco moves between $100 million to $200 million in gold bars each month. Finally, Costco reported a 9.2% increase in net sales for January, reflecting its growing appeal across various consumer demographics.