Annual e-commerce sales grow 62% at Costco.com
E-commerce sales at Costco.com grew 62% in fiscal 2006 and the company expects web sales to easily exceed $1 billion in 2007.
For FY 2006 Costco, No. 27 in the Internet Retailer Top 500 Guide to Retail Web Sites, had e-commerce sales of $880 million compared with $542 million in FY 2005. The e-commerce numbers include web sales from the U.S. site and a Canadian site Costco opened last year.
Overall the web accounted for about 2% of total sales of $58.9 billion in FY 2006. “Costco online continues to do quite well,” Costco CFO Richard Galanti told research analysts on the company’s recent year-end earnings call. “E-commerce is profitable and needless to say we have lofty goals for this year. We will do well over $1 billion.”
The growth in e-commerce was helped by several technology initiatives and site upgrades that Costco.com has been implementing. Costco.com now features a redesigned home page with a new category and sub-category design, improved site search, bigger images, and zoom technology. Another upgrade is the site’s new “build-to-order” diamond ring program.
“In addition to these site improvements we also expanded our sporting goods, housewares, baby and gourmet food categories as well as a new business products program with thousands of business items for delivery to homes and businesses nationwide,” says Costco senior vice president of e-commerce and publishing Ginnie Roeglin. “This new program is supported by a catalog available in our warehouses and can be requested on Costco.com.”
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