TikToker Tasmin Dhaliwal shares the story behind her viral video opening up about Costco samples at Varney & Co.
Richard Galanti, Costco’s CFO, said Thursday the company was “lucky” with the theft.
Galanti once said during Thursday afternoon’s earnings call that Costco’s contraction was “intact” and said the company “didn’t see any major changes in contraction.”
He pointed out that it’s a question the company has “received a few times recently because some of the companies out there were reporting much higher shrinkage.”
In retail, the word “shrinkage” refers to theft and other inventory losses.
COSTCO’s 4-pound lemon meringue cheesecake goes viral as Tiktok users rate the ‘spicy’ treat
A Costco store on September 23, 2022 in Monterey Park, California. (Eric Thayer/Getty Images / Getty Images)
“Pre-COVID, it actually wobbled up a couple of 3 basis points when we launched self-checkout, and since then it’s come back down a bit and is in a very narrow range,” Galanti added. “We were lucky in that regard.”
Costco, known for its extensive product line, previously said it believes theft rates were “well below typical retail locations” because the company “tightly controls” entrances and uses memberships.
A Costco Wholesale retail club in Austin, Texas, December 12, 2016. (Portal/Mohammad Khursheed / Portal photos)
Customers shop for clothing at Costco on July 13, 2021 in Novato, California. (Justin Sullivan/Getty Images / Getty Images)
Some retailers have reported higher levels of theft.
Earlier Thursday, Dollar Tree Inc., in announcing its own earnings, said it was “not immune to the external pressures affecting the broader retail sector, particularly the margin impact of increased shrinkage and the shift in product mix toward consumer staples.”
As these two factors are expected to continue for the remainder of the year, the company has revised its fiscal 2023 guidance for diluted earnings per share, saying it will be in the range of 5.73 to 6.13 US dollars will lie.
DOLLAR TREE COULD RISE PRICES DUE TO CRIME IF PROFITS FALL
Executives at Kohls, Foot Locker, Walmart and Target have also raised issues with theft in recent weeks, as previously reported by FOX Business.
KOHL’S, FOOT LOCKER, TARGET and WALMART say brazen retail theft is getting worse
The National Retail Federation said in one of its reports that total losses from shrinkage amounted to $94.5 billion in 2021, compared to $90.8 billion in 2020.
Galanti’s comments came as Costco’s third-quarter financial results were released.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COSTS | COSTCO WHOLESALE CORP. | 486.55 | +3.79 | +0.79% |
The company reported a 2% increase in its quarterly revenue compared to the same period in 2022, totaling $53.6 billion. Of that, $52.6 billion was from net sales, while $1 billion was from membership fees.
Third-quarter net income was down slightly at $1.3 billion. In the same three-month period last year, $1.35 billion was reported.
Danielle Genovese contributed to this report.