In its second-largest acquisition, Amazon buys the company for $970 million.
Costco is also upping membership fees in November
Web shoppers helped Costco.com grow e-commerce for fiscal 2011, but going forward it’s going to cost customers more to shop online or in Costco’s network of U.S. warehouse locations.
For the 2011 fiscal year ended Aug.28, Costco, No. 16 in the Internet Retailer Top 500 Guide, reported:
- Web sales rose year over year about 11.8% to $1.90 billion from $1.70 billion in fiscal 2010.
- Total revenue increased 14.1% to $88.90 billion from $77.90 billion in fiscal 2010.
- Comparable-store sales increased 10%.
- Net income increased 12.3% to $1.46 billion from $1.30 billion.
Internet Retailer estimates the web accounted for 2.1% of total sales in fiscal 2011 compared with 2.2% in fiscal 2010.
In November it will also cost Costco members to shop more online—and elsewhere. Effective Nov. 1 Costco will raise the price of its individual and business annual membership fee to $55 from $50. The maximum 2% reward associated with executive membership will increase from $500 to $750 while executive membership fees will rise from $100 to $110. The increase in fees will impact about 22 million of its members, Costco says.
Costco doesn’t break out quarterly e-commerce sales, but for the fourth quarter reported:
- Total revenue increased 17% to $28.2 billion from $24.1 billion in Q4 fiscal 2010.
- Comparable-store sales increased 7%.
- Net income increased 10.6% to $478.0 million from $432.0 million.