Core Insights - Costco is experiencing a significant increase in younger members, with nearly half of new sign-ups under the age of 40 during the three-month period ending August 31 [1][5] - The company reported a 92.3% renewal rate across North America, slightly down from the previous quarter due to an increase in online memberships, which tend to have lower immediate renewal rates [2] - Costco ended the fiscal year with 81 million total paid members, a 6.3% increase year-over-year, and 145.2 million cardholders, up 6.1% from the previous year [5] Membership Trends - The influx of younger shoppers is attributed to the ease of online sign-up processes, appealing to those who prefer digital options [3] - The company believes that engaging the younger generation of members presents opportunities for broader member engagement compared to pre-COVID times [5] Traffic and Sales Performance - Big box retailers, including Costco, are seeing increased traffic due to a strong focus on value and innovation [7] - Since Q2 2021, Costco has experienced year-over-year growth in store visits, indicating effective traffic generation to existing stores and new warehouses [8] - Costco's exclusive hours for executive members have been well-received, contributing to a 1% sales boost [10] Industry Context - Despite Costco's growth, the broader retail and dining traffic has declined for three consecutive months, indicating a potential consumer slowdown [12] - The report highlights a disparity in spending habits, with higher earners continuing to spend while middle- and lower-income consumers are cutting back, raising concerns about reliance on high-income shoppers for economic stability [12]