Costco Wholesale Corporation is a multinational membership-only warehouse club chain headquartered in Issaquah, Washington. It is the third-largest retailer in the world, operating a chain of membership-only big-box warehouse club retail stores. Costco offers a wide range of products, including groceries, electronics, apparel, furniture, and automotive supplies. The company’s business model is based on offering discounted prices to members who pay annual fees.
Key Facts
- Costco is a multinational membership-only warehouse club chain.
- It is the third-largest retailer in the world.
- Costco operates a chain of membership-only big-box warehouse club retail stores.
- The company was founded in 1976 as Price Club and opened its first warehouse in Seattle in 1983.
- In 1993, Costco and Price Club merged operations and became PriceCostco.
- The company reverted to using the Costco name and stock symbol in 1997.
- Costco has headquarters in Issaquah, Washington.
- As of 2023, Costco has 871 warehouses worldwide, including locations in the United States, Canada, Mexico, Japan, the United Kingdom, and other countries.
- Costco is known for offering a wide range of products, including choice and prime beef, organic foods, rotisserie chicken, and wine.
- The company’s membership model is crucial to its business, with members paying annual fees for access to discounted prices and additional perks.
- Costco had around 66 million paid members and 119 million cardholders in 2022.
- The company made $4.2 billion in membership fees in 2022, with a high renewal rate of 93%.
History
Costco was founded in 1976 as Price Club by James Sinegal and Jeffrey Brotman. The company opened its first warehouse in Seattle in 1983. In 1993, Price Club merged with Costco Wholesale Corporation, another membership-only warehouse club chain founded in 1982. The combined company became known as PriceCostco. In 1997, the company reverted to using the Costco name and stock symbol.
Membership Model
Costco’s membership model is crucial to its business. Members pay annual fees for access to discounted prices and additional perks, such as exclusive sales and free shipping. As of 2022, Costco had around 66 million paid members and 119 million cardholders. The company’s membership renewal rate is high, at 93%.
Product Offerings
Costco offers a wide range of products, including groceries, electronics, apparel, furniture, and automotive supplies. The company is known for its low prices and its focus on quality. Costco also offers a variety of services, such as optical care, pharmacy, and tire installation.
Financial Performance
Costco is a profitable company. In 2022, the company reported revenues of $242.29 billion and net income of $6.29 billion. Costco’s membership fees accounted for $4.2 billion of its revenue in 2022.
Conclusion
Costco is a successful company with a strong business model. The company’s focus on quality and its membership model have contributed to its success. Costco is well-positioned for continued growth in the future.
Sources
- Costco Wholesale Corporation
- Wikipedia: Costco
- CNN Business: Costco’s membership card sharing problem
- Costco Auto Program
FAQs
What is Costco?
Costco is a multinational membership-only warehouse club chain headquartered in Issaquah, Washington. It is the third-largest retailer in the world.
What does Costco sell?
Costco sells a wide range of products, including groceries, electronics, apparel, furniture, and automotive supplies. The company is known for its low prices and its focus on quality.
How does Costco make money?
Costco makes money through membership fees and sales of products and services. In 2022, the company made $4.2 billion in membership fees and $242.29 billion in revenue from sales.
How much does a Costco membership cost?
Costco offers two membership options: Gold Star and Executive. Gold Star memberships cost $60 per year, while Executive memberships cost $120 per year. Executive members receive additional perks, such as a 2% annual reward on purchases and free shipping on online orders.
How many Costco stores are there?
As of 2023, Costco has 871 warehouses worldwide, including locations in the United States, Canada, Mexico, Japan, the United Kingdom, and other countries.
What is Costco’s return policy?
Costco has a generous return policy. Members can return most items for a full refund, even if they are opened or used. Some items, such as electronics and appliances, have a limited return period.
Does Costco offer same-day delivery?
Costco offers same-day delivery on a limited number of items in select areas. Members can check the Costco website or app to see if same-day delivery is available in their area.
Does Costco have a mobile app?
Yes, Costco has a mobile app for iOS and Android devices. The app allows members to shop online, check their membership status, and find nearby Costco warehouses.