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SAN FRANCISCO - The top brass at Costco Corp. told shareholders to expect another year of record growth in 2002 despite an ongoing recession that's forced many retailers to put expansion plans on hold.

Close to 400 shareholders and employees gathered at the Knob Hill Masonic Center in San Francisco on Jan. 30 to review Costco's performance in 2001 and preview the growth plan and new initiatives slated for 2002. They include the introduction of a new Costco cash card in early spring and plans to open 45 new stores during the current fiscal year that began in September.

"Some people have questioned why we continue to expand so quickly with the economy the way it is, but this plan was set in motion several years ago," said president and ceo Jim Sinegal. "The new markets we've entered in the past few years have been very receptive, and we think our growth plan is the right thing to do in the long term. We're going to stick to our game plan."

In fiscal 2001, the warehouse retailer opened 39 new stores and generated a record $34.8 billion in revenues and $602 million in net income. Comparable store sales rose 4% for the year, and Costco opened stores in 26 new markets. One of those markets was Texas, where Costco opened seven stores in 2001 and plans to add three more in 2002, including two in San Antonio. "This will take us to 10 units in Texas, and we're very excited about our results there so far," said chairman of the board Jeff Brotman.

International expansion will feature the opening of a store in Tamasaki, Japan, in August--bringing its total in that country to three-and three stores in the United Kingdom, where Costco expects to generate $1 billion in sales this year with 14 stores by year's end.

In the spring of this year, the retailer plans to introduce a Costco cash card that customers can purchase or trade for returned items. "We picture it as something people can give to their kids in college or use as a gift card," said Sinegal.

Costco generated $73 million in e-commerce sales in 2001 and expects to top $100 million in sales in 2002. Costco also achieved its goal of turning a profit through online sales. "E-commerce sales were profitable, and they'll continue to be profitable this year, which puts us in kind of an exclusive club," Sinegal said.

The retailer hit another milestone in December 2001 when it generated more than $1 billion in sales in a week for the first time. "It was our first $1 billion week the week before Christmas," said Sinegal. "And it felt good until someone reminded me that Wal-Mart has $1 billion days, which put a pin in my balloon.

Costco topped $500 million in wine sales last year, making it the largest wine retailer in the country, and the company sold more than 50,000 carats of diamonds. Sales of its Kirkland brand of olive oil accounted for 15% of olive sales in the country.

The retailer usually holds its annual shareholders meeting near its home in the Seattle area, but staged it in San Francisco this year to make it convenient for Costco employees and shareholders that live in California to attend. The Golden State is home to nearly 40% of Costco's stores.