Costco's fresh foods category experienced growth in the high single digits, Millerchip said. Continuing a trend from last quarter, sales of meat increased by double digits, Millerchip said, as consumers shifted toward lower-cost proteins like ground beef. Customers continued to spend more on food at home, he added.
The meat and bakery sections drove the fresh foods category to lead Costco's categories in inflation, though overall inflation was in the low single digits, he added.