Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, as well as 636 gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries. As of August 29, 2021, the company operated 815 membership warehouses, including 564 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, 1 in Iceland, 1 in France, and 1 in China. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
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- Amazon Prime for discounted bulk goods in a giant physical store.
- A membership-only Walmart for bulk goods.
- Sam's Club for groceries and general merchandise.
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- Groceries & Fresh Food: A vast selection of fresh produce, meats, dairy, baked goods, frozen foods, and pantry staples, often sold in bulk.
- Electronics: Televisions, computers, cameras, home theater systems, and other consumer electronic devices.
- Home Goods & Appliances: Furniture, small and large kitchen appliances, bedding, bath items, kitchenware, and outdoor living products.
- Apparel & Jewelry: Clothing, shoes, accessories, and fine jewelry including diamonds, watches, and precious metals.
- Health & Beauty Products: Over-the-counter medications, vitamins, supplements, personal care items, and cosmetics.
- Automotive & Tires: A selection of tires, car batteries, and automotive accessories.
- Memberships: Annual fees providing exclusive access to warehouse shopping, discounted fuel, and other member-only services.
- Gasoline Stations: Discounted fuel services available at many warehouse locations.
- Pharmacy Services: Dispensing of prescription medications, over-the-counter drugs, and health consultations.
- Optical Services: Eye exams, prescription eyeglasses, contact lenses, and sunglasses.
- Food Courts: Providing low-cost hot dogs, pizzas, beverages, and other snacks for members and their guests.
- Travel Services: Discounted vacation packages, cruises, rental cars, and hotels exclusively for members.
- Business & Other Services: Offerings like bottled water delivery, payment processing, and digital photo printing for businesses and members.
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Costco Wholesale (symbol: COST) primarily sells directly to its members, which include both individual consumers and small businesses. It operates on a membership-based model, offering a wide array of products in bulk quantities at competitive prices.
Given that Costco sells primarily to individuals and small businesses rather than large corporate customers, its major customer categories can be described as follows:
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Individual and Household Consumers: This is the largest segment of Costco's customer base, comprising individuals and families who purchase goods for their personal and household consumption. These members are attracted to Costco for its bulk savings, quality products, wide selection (including groceries, electronics, home goods, and apparel), and competitive pricing on everyday essentials and specialty items.
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Small Business Owners and Operators: This category includes entrepreneurs, small business owners, and managers who utilize their Costco membership to procure supplies, inventory, and equipment for their commercial operations. Costco caters to this segment with specific product assortments, larger pack sizes, and dedicated "Business Centers" in some locations, addressing needs for offices, restaurants, convenience stores, and other small enterprises.
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Ron Vachris
President and Chief Executive Officer
Ron Vachris became President and Chief Executive Officer of Costco Wholesale Corporation in January 2024, becoming only the third CEO in the company's history. He began his career with the Price Club, Costco's predecessor, in 1982 as a forklift driver while attending Glendale Community College to study business. Over his 40-year tenure with the company, he steadily advanced through various roles, including warehouse operations, merchandising, regional management, and real estate. Before becoming CEO, Vachris served as President and Chief Operating Officer from February 2022 to January 2024. His career demonstrates a pattern of internal advancement within the same organization.
Gary Millerchip
Executive Vice President and Chief Financial Officer
Gary Millerchip was appointed Executive Vice President and Chief Financial Officer of Costco, effective March 15, 2024. He brings extensive retail and finance experience to Costco, having served as Senior Vice President and Chief Financial Officer at The Kroger Co. since April 2019. Millerchip spent 15 years at The Kroger Co. and, prior to that, more than 20 years in banking, most recently with the NatWest Group (formerly Royal Bank of Scotland) in the U.K. He also served as Chief Executive Officer of Kroger Personal Finance starting in July 2010. He earned a Bachelor of Arts in Financial Services from Birmingham City University and a Master of Business Administration from the University of Warwick - Warwick Business School.
Claudine Adamo
Executive Vice President, COO - Merchandising
Claudine Adamo serves as the Executive Vice President, COO - Merchandising at Costco Wholesale Corporation. She began her career at Costco in 1982 in security at the Kirkland location, which involved greeting members at the door. Adamo worked her way through various roles, including regional office work, before becoming an Executive Vice President of merchandising, overseeing all merchandise sold by the organization.
Patrick J. Callans
Executive Vice President, Administration
Patrick J. Callans is the Executive Vice President of Administration at Costco Wholesale. He started at Costco Wholesale in an unspecified role.
Russell D. Miller
Executive Vice President, Chief Operating Officer
Russell D. Miller holds the position of Executive Vice President, Chief Operating Officer at Costco Wholesale Corporation.
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The public company Costco Wholesale (COST) faces several key risks to its business model and financial performance.
- Intense Competition: Costco operates in a highly competitive retail environment, facing challenges from other warehouse clubs such as Sam's Club and BJ's Wholesale Club, as well as traditional supermarkets, big-box retailers, and rapidly expanding online retailers like Amazon and Walmart. This intense competition can lead to reduced market share, pricing pressure, and lower profitability for Costco.
- Dependence on Membership Income: A significant portion of Costco's profitability is derived from its membership fees, which are described as its "secret weapon" and a steady stream of revenue. The company's financial performance relies heavily on maintaining high membership renewal rates and continued membership growth. Risks include potential saturation in mature markets like the U.S. and Canada, challenges in international expansion, or a decline in renewal rates, which could significantly impact net income.
- Supply Chain Disruptions: Costco's business relies on an efficient global supply chain to maintain its low-price strategy and product availability. Disruptions to this supply chain, which have been highlighted by events like the COVID-19 pandemic, can lead to increased costs for merchandise, reduced availability of products, and negative impacts on Costco's ability to offer competitive prices and maintain profitability.
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The accelerating penetration of e-commerce, particularly by Amazon (including Amazon Fresh and Whole Foods), into the grocery and bulk goods market. This competition challenges Costco's value proposition by offering comparable products at competitive prices with superior online convenience and delivery options, potentially eroding the distinct advantage of a physical warehouse club membership for many consumers. While e-commerce has been present, the substantial increase in consumer adoption of online grocery shopping, significantly accelerated by recent global events, and Amazon's continued strategic investments in its grocery fulfillment and delivery infrastructure represent an intensifying and emerging threat to Costco's established model.
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Costco Wholesale (symbol: COST) operates as a membership-only warehouse club offering a wide array of products and services. The addressable markets for its main offerings span several significant retail sectors.
Addressable Markets for Costco Wholesale:
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Warehouse Clubs: This is the most direct addressable market for Costco's business model.
- Global: The global Warehouse Clubs Market was valued at approximately USD 667.81 billion in 2025 and is projected to reach USD 997.23 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 5.14%. Another estimate valued the global Warehouse Clubs Market at USD 1.6 trillion in 2024, projected to reach USD 2.4 trillion by 2032 with a CAGR of 5.2%.
- U.S.: The U.S. Warehouse Clubs & Supercenters market size was estimated at USD 768.3 billion in 2025, having grown at a 3.1% CAGR between 2020 and 2025. Another source indicated total revenue for Warehouse Clubs & Supercenters in the U.S. was $769.9 billion in 2024.
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Overall Retail Market (General Merchandise): Costco operates within the broader retail industry, selling groceries, electronics, home goods, and other general merchandise.
- Global: The global retail industry market is valued at USD 27.26 trillion in 2025 and is forecast to reach USD 36.91 trillion in 2030, with a CAGR of 6.25%. Worldwide retail sales are projected to total $31.3 trillion in 2025, with projections indicating they will exceed $37 trillion by 2030.
- U.S.: U.S. retail sales are projected to total $7.45 trillion in 2025. The U.S. retail market was valued at USD 5127.42 billion in 2024 and is expected to reach USD 6189.29 billion by 2034, with a CAGR of 1.90%.
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Food & Grocery Retail Market: Groceries, fresh produce, meat, and bakery items are significant product categories for Costco.
- Global: The global food & grocery retail market size was valued at USD 11,932.5 billion in 2023 and is projected to reach USD 14,781.1 billion by 2030, growing at a CAGR of 3.2% from 2024 to 2030. Another estimate placed the global grocery market value at approximately USD 3.87 trillion in 2024, projected to grow to around USD 6.13 trillion by 2034 with a CAGR of 4.70%.
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Pharmacy Market: Costco operates pharmacies within its warehouses.
- Global: The global pharmacy market size was valued at USD 2,051.5 billion in 2023 and is projected to grow to USD 3,886.3 billion by 2032, exhibiting a CAGR of 7.4% during the forecast period. The global pharmaceutical market size is calculated at USD 1.77 trillion in 2025 and is predicted to exceed USD 3.03 trillion by 2034, with a CAGR of 6.15%.
- U.S.: The U.S. pharmacy market size reached USD 643.4 billion in 2024 and is expected to reach USD 905.8 billion by 2033, exhibiting a growth rate (CAGR) of 3.87%. The U.S. retail pharmacy market is estimated to increase from US$ 609.2 billion in 2025 to US$ 818.0 billion by 2032, recording a CAGR of 4.3%.
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Optical Market: Costco offers optical centers for eyeglasses, contacts, and optometrist services.
- U.S.: The U.S. optical industry achieved a total market value of $68.3 billion in 2024. The U.S. optical market was valued at approximately USD 66 billion in 2023.
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Gasoline Market (Retail Fuel): Many Costco warehouses include gas stations.
- Global: The global retail fuel market size was valued at approximately USD 4.5 trillion in 2023 and is projected to reach around USD 6.8 trillion by 2032, growing at a CAGR of 4.7%. The global gasoline market size reached USD 129.5 billion in 2024 and is projected to reach USD 145.7 billion by 2033, exhibiting a CAGR of 1.38%.
- North America: North America dominated the gasoline market in 2024.
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Costco Wholesale Corporation (COST) is expected to drive future revenue growth over the next two to three years through several key strategies:
- New Warehouse Expansion: Costco has aggressive plans for expanding its global footprint. The company intends to open a significant number of new warehouses annually, targeting both domestic and international markets. For instance, Costco planned to open 27 new warehouses in fiscal year 2025 (including three relocations, resulting in 24 net new buildings) and 35 new warehouses by August 2026 (including five relocations for a net addition of 30 stores). This expansion strategy aims to capture new markets and increase its customer base.
- Membership Fee Increases and Growth: A significant driver for Costco's revenue is its membership fees. The company raised its annual membership fees by $5, effective September 1, 2024, which is expected to bolster future revenue. Additionally, Costco continues to demonstrate strong membership growth, with paid household members increasing by 7.6% year-over-year in Q1 fiscal year 2025, and high worldwide renewal rates, consistently around 90%.
- E-commerce Growth: Costco is investing in its online platform to enhance the digital shopping experience for members, including improvements in logistics and delivery services. The company has reported significant increases in e-commerce sales, with digitally-enabled comparable sales surging 16.6% in October 2025. This focus includes expanding product offerings available online.
- Growth of Kirkland Signature Private Label: Costco continuously expands its Kirkland Signature product line, offering high-quality items at competitive prices. This strategy not only drives sales but also strengthens brand loyalty among members, representing approximately 33% of U.S. sales.
- Expansion of Ancillary Businesses and Services: Costco operates various ancillary businesses such as pharmacies, optical centers, food courts, gas stations, and tire installation centers. These services, along with offerings like business delivery, travel, and the "Costco Next" curated marketplace, contribute to overall revenue growth and enhance member value.
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Share Repurchases
- Costco's Board of Directors reauthorized a common stock repurchase program of up to $4 billion in January 2023, set to expire in January 2027. This program replaced a previous $4 billion authorization (adopted in 2019) under which approximately $1.4 billion had been utilized.
- The company's annual share buybacks were $700 million in 2024 and $676 million in 2023.
- Share repurchases amounted to $280 million for the period ending August 31, 2025.
Share Issuance
- Costco's shares outstanding were 0.445 billion in 2025, marking a 0.01% increase from 2024.
- In 2024, shares outstanding were 0.445 billion, a 0.07% increase from 2023.
- As of October 1, 2024, the number of common shares outstanding was 443,073,537.
Outbound Investments
- In June 2022, Costco acquired the remaining equity interest in its Taiwan operations from its former joint venture partner.
Capital Expenditures
- Costco's capital expenditures have shown a consistent increase, reaching $5.498 billion for fiscal year 2025 (TTM), $4.71 billion in 2024, $4.323 billion in 2023, and $3.891 billion in 2022.
- For fiscal year 2025, capital expenditures are expected to be approximately $5 billion, with plans to open 29 new warehouses.
- The company plans to open 35 new warehouses in fiscal year 2026 and continues to prioritize investments in technology, remodels, and manufacturing facilities to support growth.
