Precious metals sales drive e-commerce growth for the company

Costco customers bought gold and silver from the big name in droves, helping them boost e-commerce sales last quarter.

“The growth in total e-commerce sales in the quarter was driven by gold and silver bars, gift cards and devices,” Chief Financial Officer Gary Millerchip told investors on Thursday, according to NBC News.

The membership-based company also saw online sales grow 20.7% in the third quarter and first 36 weeks of fiscal 2024.

The company has been watching the trend grow for months. In October, Mr. Millerchip told investors that gold bars “usually disappeared within hours” of appearing on the site as buyers flocked to buy them.

The company was forced to limit the number of bars per customer to make sure there were enough for everyone.

Jonathan Rose, president of precious metals brokerage firm Genesis Gold Group, told The Associated Press last year that inflation and public concerns about the U.S. dollar may have been driving the selling.

Meanwhile, as food prices across the United States have soared, Mr. Millerchip also said the company’s famous $1.50 hot dog deal is safe and reliable, a conversation he had on Thursday.

“Oh, and to dispel recent media speculation, I would also like to confirm that the $1.50 price for a hot dog is safe,” Mr. Millerchip said.

Former Costco CEO Jim Sinegal jokingly warned his successor, Craig Jelinek, to keep the price of a hot dog at $1.50 at all costs.

“I went to (Mr. Sinegal) one time and said, ‘Jim, we can’t sell this hot dog for $50. We’re losing our asses.’ And he said, ‘If you pick up that damn hot dog, I’ll kill you. Work it out,’” Mr. Jelinek recalled earlier.

Mr. Millerchip also told investors that Costco was seeing an increase in purchases of discretionary items, including toys, tires, lawn and garden supplies and personal care and beauty products.

Independent contacted Costco for comment.