Costco (COST) has announced that it will open seven new stores over the course of the summer as it continues to expand its retail footprint.
The seven warehouse additions come in addition to three other stores that will open in May and June, as well as one location that is scheduled to open in November.
On May 19, Costco will open a store in Riverton, Utah, with a Business Center store in Anjou, Quebec, Canada, in June and another store in N Oshawa, Ontario, Canada, also in June.
The November store opening is scheduled for University City, Missouri.
But this summer, Costco will see a warehouse open in Mibu, Japan, in July, and stores in St. Augustine, Florida; University Station, Texas; Murrieta, Calif.; Verona, Wisconsin; Auckland, New Zealand; and Gimhae, South Korea; in August.
Costco announced that it would open up to 27 new stores in 2022.
Chief Financial Officer Richard Galanti said during Costco’s first-quarter 2022 earnings call, according to a Seeking Alpha transcript, “we’re going to have 27 net new units this fiscal year, plus five watches, which is…six.” planned clocks. We might miss each other a bit. But at the end of the day, there are more warehouses.”
Unlike many other retailers, Costco has seen a surge in sales, especially during the COVID pandemic, as its discount merchandise attracted shoppers in droves. It has bucked the trend of downsizing physical stores as it continues to see strong sales from consumers.
The retailer reported a 16.1% net sales increase for the second quarter of 2022 to $50.94 billion from $43.89 billion last year, according to its latest earnings report.
The news of the store openings comes amid speculation that Costco is about to increase its membership fees.
The retailer currently charges $60 per year for its Gold membership, which includes two cards per household and access to all of its warehouse clubs around the world, as well as Costco.com. Your Executive membership is $120 per year and you earn 2% on all eligible purchases up to $1,000 with additional savings on other Costco services like travel.
Costco has not increased its membership dues since June 2017.
As of pre-market hours on Friday, Costco shares were trading at $515.14, down $2.18 or 0.42%.