Costco 2011 Annual Report Download - page 30

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2011 (24 opened, and four closed, two due to relocation and two temporarily closed for repairs due to
damage caused by the March 11, 2011 Japan earthquake, one of which remained closed as of the end
of 2011).
Foreign currencies strengthened against the U.S. dollar, which positively impacted net sales during
2011 by approximately $1,308, or 172 basis points. Net sales were also positively impacted by
gasoline price increases during 2011 by approximately $1,699, or 223 basis points, which resulted
from a 24% increase in the average sales price per gallon.
Our sales results continued to be impacted, albeit to a lesser extent than in 2010, by general economic
conditions, and those conditions may continue to have an adverse impact on spending by our
members. We believe, however, that due to the nature of our business model, we are better positioned
than many retailers to compete in such an environment.
Comparable Sales
Comparable sales, including Mexico for both this year and last year, increased 10% during 2011, and
were positively impacted by increases in the average amount spent by our members and in their
shopping frequency. The strengthening of foreign currencies favorably impacted comparable sales by
approximately $1,260, or 162 basis points during 2011. Gasoline price inflation positively impacted
comparable sales results by approximately $1,679, or 220 basis points during 2011. Reported
comparable sales growth includes the negative impact of cannibalization (established warehouses
losing sales to our newly opened locations).
2010 vs. 2009
Net Sales
Net sales increased $6,366 or 9.1% during 2010 compared to 2009. The increase was primarily
attributable to an increase in comparable warehouse sales and the remainder primarily from sales at
the 13 net new warehouses opened during 2010 (14 opened and one closed due to a relocation).
Foreign currencies strengthened against the U.S. dollar, which positively impacted net sales during
2010 by approximately $1,570 or 225 basis points. Net sales were also positively impacted by gasoline
price inflation during 2010 by approximately $895, or 128 basis points, which resulted from a 17%
increase in the average sales price per gallon.
Comparable Sales
Comparable sales increased 7% in 2010 and were positively impacted primarily by an increase in
shopping frequency. Strengthening foreign currencies positively impacted comparable sales by
approximately $1,510, or 217 basis points, in 2010. Gasoline price inflation positively impacted
comparable sales results by approximately $882, or 126 basis points, during 2010. Reported
comparable sales growth includes the negative impact of cannibalization (established warehouses
losing sales to our newly opened locations).
Membership Fees
2011 2010 2009
Membership fees ................................ $1,867 $1,691 $1,533
Membership fees increase ........................ 10.4% 10.3% 1.8%
Membership fees as a percent of net sales ........... 2.15% 2.22% 2.19%
Total cardholders (000’s) .......................... 64,000 58,000 56,000
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