Costco sales drop again

Costco slipped as the second straight slowdown in a key monthly sales gauge stoked doubts about the strength of U.S. consumers.

U.S. comparable sales eked out only a 0.9% gain in March after excluding the impact of changes in gasoline prices, the company said in a statement Wednesday.

That’s the smallest advance since April 2020 – shortly after the economic lockdowns at the start of the pandemic.

The tepid performance underscored the risk that Costco’s long sales boom is finally petering out.

It also adds another sign of weakness in the U.S. economy after the Institute for Supply Management reported slower-than-expected growth in the U.S. service sector in March.

Costco’s March sales numbers “appear a reason for significant concern,” said Greg Melich, an analyst at Evercore ISI, said in a note to clients Thursday.

Still, based on long-term trends, Costco’s results may rebound in April and the retailer’s long-term prospects remain promising, he said.

The shares slid 3.7% at 10:01 a.m. in New York. Costco advanced 8.9% this year through Wednesday, topping the 6.5% gain in the S&P 500 index.

While Costco’s upscale customers have been less affected by inflation, the warehouse club isn’t immune to softer sales of discretionary items as shoppers spend more on basic goods and services such as travel.

Mastercard seeks non-plastic cards

Mastercard wants the plastic in consumers’ wallets to do less damage to the environment.

Starting in 2028, the company will require all banks issuing one of its payment cards to use sustainable materials as it seeks to remove first-use, PVC plastics from its network, according to a statement Wednesday.

Acceptable alternatives include recycled or bio-sourced plastics.

The move comes as experts increasingly worry about the toll the global addiction to plastic will take on worldwide efforts to limit greenhouse gas emissions.

Plastic was responsible for 1.8 billion metric tons of greenhouse gas emissions in 2019, or 3.4% of the global total, more than the percentage contributed by the aviation sector.

“Mastercard is committed to advancing climate action and reducing waste by driving our business toward net zero emissions and leveraging our network and scale to accelerate the transition to a low-carbon, regenerative economy,” Ellen Jackowski, Mastercard’s chief sustainability officer, said in the statement.

From wire reports