Costco has provided a fresh update on its 29 UK stores, revealing a significant jump in profits as British consumers increasingly turn to bulk purchasing amid ongoing cost of living pressures. The wholesale giant, which operates 29 warehouses across the nation, including half a dozen in London, posted pre-tax profits of £218.6 million for the fiscal year ending August 2025. This marks a 15.7% increase compared to the previous year.
Strong Financial Performance
Turnover for the period climbed by 5.2% to reach £5.6 billion, securing Costco's position among Britain's top 10 supermarkets by revenue. The company also experienced a 15.6% surge in online sales throughout the year, driven by heightened demand for small appliances, jewellery, furniture, and notably, gold bullion.
Costco celebrated growth in both membership numbers and customer visits during the period. The firm attributed the increase in core merchandise sales to an expanded range of items, particularly in foods and sundries, as well as a continued focus on item selection across categories to enhance value.
Sales Drivers and Promotions
In a statement reported by City AM, the company noted: "Increases in our core merchandise sales was driven by expanded range of items, particularly in foods and sundries, as well as continued focus on item selection across our merchandise categories to enhance value." It added that good sales uplift was observed during trade focus days, as members took advantage of trade promotions and purchased other items. In the fresh category, sales growth came from a combination of additional basket items, some inflationary price increases, and a switch to more premium protein meat items with higher average selling prices.
Parent Company Success
Costco's American parent company, based in Washington, has enjoyed remarkable success, with its stock value approaching the $500 billion market capitalisation milestone for the first time. Share prices have surged by 28% since January, positioning it among the top performers on the Nasdaq this year, outpacing technology behemoths including Google, Microsoft, and Amazon.
The UK represents Costco's fifth-largest market globally and its largest in Europe. However, the retailer's British footprint remains modest compared to the US, where it operates more than 600 outlets, and Canada, which hosts over 100 stores. The company achieves approximately $300 billion in turnover across the globe.
