Costco online sales up 43.5%

Costco reported earlier this month that its online sales increased 43.5% compared to the same quarter last year, largely due to website improvements, the ability for shoppers to buy items online and pick them up at the store, and the recent launch of new delivery options. In addition, the company reported that it continues to get a revenue boost from customers who initially come into the store for food, but end up purchasing non-food items as well. (Those who shop at Costco know that it's hard to get out of the store for less than $200!)

Even with the online boost, about 95% of Costco's sales occur in stores.

Costco, the third largest grocery retailer in the U.S. behind Walmart and Kroger, reported net income in the third quarter of $640 million, a 17% increase from the same quarter last year. Membership fee revenue climbed 9.8% to $692 million. The company raised membership fees in June.

"Membership trends and renewal rates are still at the 89% and 90% level," according to Edward Jones Analyst Brian Yarbrough. "I think the model continues to work very well. They've got food that's over 50% of their business, and that drives traffic. And they have great deals, and that creates a treasure hunt nature."

The Fresh Market reports increases in sales, income

The Fresh Market reported an excellent third quarter yesterday, although analysts had hoped for better results.

• Net income for the quarter grew to $10.9 million, a 19% gain as compared to the same period one year ago.
• Sales reached $321.5 million, a 22.1% gain.
• Income per share was $0.23, compared to analysts expectations of $0.26.
• Year-to-date net income was $43.5 million on sales of $959.3 million. Both figures represent significant increases (31.2% and 21.8%, respectively) compared to the same period a year ago.
• Comparable-store sales were up 5.6% for the quarter and 7.3% year-to-date.

As of the close of business yesterday, The Fresh Market's shares were down 12% since analysts expectations were not met.

Food sales boost Family Dollar earnings

Family Dollar reported fiscal fourth quarter earnings yesterday and announced that expanded selections of food played a large part in their sales gains. Overall consumables sales increased by 16% compared to the same period one year ago, with food experiencing double-digit comp-store sales growth.

Net income for the quarter increased 1.4% to $80.9 million, with total sales of $2.4 billion. Total sales increased 10.8% and overall comp-store sales increased 5.4%.

For the full fiscal year ended August 25, the company posted $422.2 million in earnings on $9.3 billion in sales. Compared to the previous year, earnings were up 8.7% and sales increased 9.2%. 

Family Dollar opened 475 stores in fiscal 2012 and expects to open 500 new stores in the current fiscal year.

The Fresh Market reports significant first quarter gains

Last week The Fresh Market, which operates 116 stores in 21 states - including three in Greater Philadelphia, announced a first quarter net income increase of 43% over the same quarter one year ago.

• Net income for the fiscal first quarter, which ended April 29, 2012, was $19.3 million.
• Sales totaled $324.8 million, up 22.8%.
• Comparable-store sales gained 8.2%, including a 5.7% increase in transaction count and a 2.5% increase in basket size.

The company expects to open 14-16 new stores in this fiscal year.