Costco's Executive Membership Drives 73% of Sales, BMO Highlights

Costco Wholesale Corporation (NASDAQ:COST) ranks among the best FMCG stocks to buy. BMO Capital maintained its Outperform rating and $1,175 target price for Costco Wholesale Corporation (NASDAQ:COST)’s shares on June 23, continuing to rank the wholesale retailer as a “Top Pick” in its coverage portfolio.

The firm emphasized three recent Costco Wholesale Corporation (NASDAQ:COST) announcements that improve its value proposition for members. These include a new standalone gas station test, longer shopping hours exclusively for Executive members, and a new bonus on same-day Instacart orders funded by Instacart for Executive members.

These additional perks and bonuses, according to BMO Capital, enhance Costco’s “extreme membership value proposition,” especially for its Executive membership base. Despite accounting for 47% of Costco members, this tier accounts for 73% of the company’s sales.

A membership-based warehouse club, Costco Wholesale Corporation (NASDAQ:COST) offers bulk discounts on an array of products, including food, electronics, and household products.

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