Costco Shoppers Are Getting Younger, Buying More Gold

During an earnings call on Thursday, Costco gave positive news about its future by noting that its membership is growing among younger shoppers.

The company reported that about half of new member signups in the past year were under the age of 40. The company said that the number of younger shoppers has been growing since COVID-19 and has lowered the average age of its members over the last few years.

Costco shoppers are required to buy an annual membership in order to enter stores and make purchases. The company reported $1.512 billion in membership fee income in the fourth quarter.

The company says it has 76.2 million paid household members and renewal rates for members was 92.9%. The company recently raised its membership fees any impact on membership renewals related to the higher costs is months away.

Costco Gold Sales

Gold and jewelry sales were up double digits in the quarter according to Gary Millerchip, the company's Chief Financial Officer and he reported "continued strength in bullion."

Costco has been selling gold bars to members since last fall. Costco lists 1 oz gold bars on its website for $2,699.99 but they were listed as out of stock on Friday.

Analysts at Wells Fargo estimate that Costco is selling as much as $200 million of gold a month.

While the company has increased the number of goods offered by its Kirkland Signature brand, it has no plans to introduce the brand into the gold bullion market.