Retailer Costco Wholesale (COST:NASDAQ) is expected to unveil further market share gains when it reports quarterly results on 8 December.

The company has already reported sales up 7.7% year-on-year to $17.73 billion for October, building on a bumper 10.1% rise to $21.46 billion for September, as it capitalises on US consumers who are beginning to feel the pinch from cost-of-living pressures. November’s sales figures were scheduled to have been published as this issue of Shares was being finalised.

Washington-headquartered Costco offers low prices to members, including hard-pressed individuals and cash-strapped small and medium-sized businesses, by eliminating virtually all the frills and costs historically associated with conventional wholesalers and retailers. Costco passes through any price increases to the customer and makes additional money via an annual membership fee.

Steve Wreford, portfolio manager of Lazard Thematic Inflation Opportunities Fund (BLNKWV8), says in times of inflation ‘you become more cost conscious, so Costco is a cheap place to shop.’ He adds: ‘It has a more limited range; by focusing on a small number of items it can offer ludicrously cheap prices. That is a strong proposition for cash-strapped shoppers.’

Costco’s shares have outperformed the S&P 500 year-to-date – down 6.3% versus a 17.4% decline for the index of US-listed companies.

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