Musical Chairs

Hi, today we explore: (1) Costco's adding members and money streams, (2) US homelessness has hit new highs, (3) Broadway is still in recovery. TOGETHER WITH Today's Topics Hello! Edited out: Adobe’s massive $20 billion acquisition of design company Figma, [first announced]( in September 2022, has reportedly been called off due to [antitrust concerns]( in Europe. Today we're exploring: - Members only: Costco's adding more members and making more money. - Unhoused: US homelessness has reached the highest figure on record. - Musical chairs: Broadway attendance is back in the spotlight. Have feedback for us? Just hit reply — we'd love to hear from you! [Read this on the web instead]( All that glitters… While Costco impressed investors with its Q1 2024 earnings [last week]( surpassing Wall Street expectations on revenues and profits, there was one particularly shiny standout in the report: [gold bar sales](. The membership-only big-box retailer reported that it had shifted over $100 million in 1 oz. bars of the precious metal in the quarter, even with a two-bars-per-shopper limit. Costco's 128 million members have been able to pick up the gold bars for a mere $2,069.99 per ounce, a negligible $49 premium — or just 2% — on Friday's spot price. This minuscule margin is a crucial element of the company’s secret sauce, distinguishing it from retail giants like Walmart and Target where markups average 34% and 46%, [respectively](. Comparatively, Costco adheres almost exclusively to a 14% [maximum markup](. Members only Operating as a quasi-private club, Costco has traditionally relied on membership revenue for ~70% of its operating profit, with its cheapest annual membership going for $60 — a figure that hasn’t changed since 2017. While the membership revenue stream increased by an impressive 46% over the last 5 years, the company has successfully identified other profit-boosters, helping operating income soar over 80% in the same period. The retailer's strategy has seen it eschew traditional advertising, maintain a low staff turnover by offering competitive wages, and streamline its product selection to around 4,000 items — a far cry from the 30,000 typically found in most [supermarkets](. However, Costco's standout performer is its [Kirkland Signature brand]( which (excluding gas) raked in a staggering $52 billion in sales last year, exceeding the annual revenues of Macy's and McDonald's combined. Unhoused Homelessness in the US has grown to the highest level since the Department of Housing and Urban Development (HUD) started tracking the figure back in 2007, with a record 653,104 people experiencing homelessness at the latest [annual count](. HUD's most recent snapshot data, taken on a [single night]( every year in the last 10 days of January, paints a broad but bleak picture of America’s homelessness situation, with the headcount rising more than 12% since 2022. The number of people experiencing unsheltered homelessness — those living on sidewalks or in abandoned buildings, bus stations, etc. — was up around 47k from last year, while the figure for people staying in emergency shelters, transitional housing programs, or safe havens grew 23k in the same period. Behind the rise Homelessness has risen across every group that HUD tracks, including families, veterans, the young, and the elderly, with various reasons behind the across-the-board uptick. Indeed, government officials and expert analysts have pointed to the decline of Covid-era assistance packages and programs, in addition to sharp nationwide rent increases, as factors, with the cost of shelter rising more than 20% since the start of [the pandemic](. [Sponsored by Knightscope]( 10% interest? Now that's interesting Earning 10% interest a year is almost unheard of — but [Knightscope]( is giving everyone that opportunity with their new bond offering. How? Knightscope has tapped into a market that is forecast to grow to $119B by 2030: security robots. Combining AI, robotics and self-driving technology, Knightscope’s [Autonomous Security Robots]( (ASRs) provide extra eyes and ears on the ground — and a solution that can keep up with new threats to public safety. [Become an investor]( and the Knightscope Public Safety Infrastructure Bond pays you 10% cash interest every year, for up to 5 years. While you earn interest, [Knightscope]( uses the funds to help make the country safer. [Knightscope]( ASRs are already on patrol across the US, driving double-digit revenue growth for the company. It’s a win-win opportunity — but with limited high-interest bonds available, you’ll need to [move quickly]( to secure yours.* [Earn 10% annual interest with Knightscope bonds]( Break a leg In 2023, it seems that there’s still no business like show business. Following a devastating dry spell during the pandemic — which saw all 41 theaters bring their curtains down for a total of 18 months, the [longest shutt]( in the district’s history — NYC’s Broadway is finally reviving. A [new report]( from The Broadway League has found that the 2022-23 season, the first full 52-week run since shutting down in March 2020, saw 12.3 million admissions, nearly double the figure seen for 2021-22 and equating to a total attendance capacity of 88%. However, despite 40 new productions being added to Manhattan’s call sheet for the season, attendance remained shy of Broadway’s [pre-pandemic crescendo](. In 2018-19, a record-breaking 14.8 million audience members went to Broadway shows, with a total gross of $1.83 billion in 12 months — an all-time high note. Defying sparsity Indeed, Broadway’s bounceback has gone hand-in-hand with an [audience demographic]( shift. Although tourists still made up the largest proportion of theatergoers last season, accounting for approx. 65% of attendees, the average audience age sank to 40.4 years old, the youngest demographic seen for 20 seasons. People of color also made up 29% of total attendees, the highest percentage in the League’s history. However, even with a new theater-loving cohort on board, Broadway might not be in the post-Covid clear just yet, as soaring [operating expenses]( and NYC’s proposed [congestion charge]( are expected to take center stage moving into 2024. More Data • Southwest Airlines has been fined $140 million by the US Department of Transportation over last year’s [winter meltdown]( where over 2 million passengers were stranded due to 17,000 canceled flights. • Choc-buster: [Wonka]( has topped the US box office with a $39 million weekend debut, sweetening a $151 million worldwide total. • The security robots are coming: [Knightscope]( maker of autonomous security robots (ASRs), is offering a high-yield debt opportunity to everyday investors.The Knightscope Public Safety Infrastructure Bond pays you 10% cash interest every year, for up to 5 years. See the [offering circular]( • This year, roughly 1 in 5 Americans aged over 65 years were [employed]( — nearly double the share from 35 years ago — of which 62% were working full-time. **This is sponsored content. Hi-Viz • Visualizing 2023 as the [hottest year]( on record. • Pine drop: mapping out where [Christmas trees]( grow across the US. Off the charts: General Motors announced last week it's laying off 25% of the workforce at which self-driving [car subsidiary]( (that we delved into in a recent Sunday deep dive)? [Answer below]. Answer here in our [deep dive](. *This is a paid advertisement for Knightscope, Inc.’s Reg A offering. Please read the offering circular at [(. Thanks for reading. See you on Wednesday! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi%2C%0A%0AI%20like%20the%20newsletters%2C%20but%20I%20had%20a%20thought%20for%20you...) or want to [sponsor]( this newsletter? Not a subscriber? Sign up for free below. [Subscribe]( Copyright © 2023 CHARTR LIMITED, All rights reserved. You are receiving this email because you opted in via our website. Our mailing address is: CHARTR LIMITED 231 Vauxhall Bridge RoadLondon, SW1V 1AD United Kingdom [Add us to your address book]( Don't want charts in your inbox anymore? Break our hearts and [unsubscribe](.