Costco UK’s pre-tax profits fell for the second consecutive year last year as the wholesaler continued to face competition from ­supermarket deals and ­customers move away from big-­ticket items.

Pre-tax profits slipped 5.1% to £20.9m, on sales up 2.3% to £1.44bn in the year to 29 August 2010, ­according to accounts filed at Companies House.

Costco said profits had also been affected by start-up costs for its Croydon and Coventry depots.

“The main drivers of sales growth were our core foods and sundries, with tobacco particularly strong,” the directors said. “The exception to this was in BWS, which suffered due to competitive pressures.”

Fresh food areas had increased sales share, they added.

The company reaffirmed its plans to open in one to two new locations a year until it had 45 to 50 sites.

Topics