Costco shoppers splurge on saunas and massage chairs as sales jump

Costco’s sales of saunas and massage chairs rose almost 50% in its fiscal third quarter, a sharp signal that members are buying more than bulk groceries and paper goods. Chief financial officer Gary Millerchip said shoppers were choosing higher-value self-care items when the quality and value made sense, and the company paired that trend with net sales of $69.15 billion for the 12 weeks ended May 10, up 11.6% from a year earlier.

That mix matters on the warehouse floor. Gold and jewelry, small electrics, tires, home furnishings, majors, and health and beauty were the quarter’s top-performing departments, a lineup that points to more display space, more questions from shoppers, and more coordination for bulky purchases that do not leave the building in a cart. For front-end workers and managers, stronger demand for premium items means more upselling conversations and more checks on how quickly higher-ticket goods can move from the sales floor to delivery or loading.

The shift also shows up in Costco’s digital business. Digitally enabled comparable sales climbed 21.5% in the quarter, while paid memberships increased 4.1%. Chief executive Ron Vachris said the final five weeks of the period became Costco’s five biggest volume weeks ever, and he said the chain saw first-time members coming in for gas stations, adding another layer of traffic pressure on front ends and fuel operations.

The company’s quarterly net income rose to $2.19 billion, or $4.93 per diluted share. Costco also said the premium-purchase pattern was not limited to self-care, with earlier demand for jewelry, luggage and furniture showing that members are still willing to trade up when the warehouse price looks like a bargain.

The momentum carried through Costco’s fiscal 2025 results as well. Net sales for the full year reached $269.9 billion, up 8.1% from $249.6 billion, and fourth-quarter e-commerce comparable sales rose 13.6%, or 13.5% adjusted. Costco operated 931 warehouses worldwide as of May 10, including 639 in the U.S. and Puerto Rico, a footprint that keeps the chain’s low-price promise tied to a much broader and more complicated mix of goods than the old pallet-only model.