1. Costco gains young members; nearly half under 40. 2. 92.3% renewal rate slightly down due to online acquisitions. 3. Traffic growth sustained since pandemic; up every quarter since Q2 2021. 4. Brick-and-mortar traffic declines more broadly; Costco bucks this trend. 5. High-income shoppers remain strong, but lower earners cut spending.
The continued increase in young members and overall traffic supports Costco's growth strategy, similar to past expansions that reflected positively on stock prices.
The growth in member demographics and sustained traffic indicates long-term viability and revenue potential, which are crucial for Costco's business model.
Engaging younger demographics can lead to steady membership growth and sustained revenues over time; relevant historical cases show long-term gain in similar scenarios, e.g., Target's brand repositioning in younger markets.