Here are 1-3 brief analogies for Costco Wholesale:

• Walmart for bulk, membership-only shopping.
• A members-only Target for buying almost everything in bulk.
• An offline, members-only Amazon for bulk purchases.

Products

• Groceries: A wide assortment of fresh, frozen, and pantry food items, including organic and gourmet selections.
• Electronics: Televisions, computers, home theater systems, and other consumer electronics.
• Home Goods: Furniture, kitchenware, cleaning supplies, and general household items.
• Apparel: Clothing, footwear, and accessories for all ages.
• Health & Beauty Products: Over-the-counter medications, vitamins, personal care products, and cosmetics.
• Automotive Products: Tires, car batteries, and various automotive accessories.
• Jewelry: Fine jewelry, watches, and accessories.
• Seasonal & Outdoor Items: Patio furniture, grills, gardening equipment, and holiday decorations.

Services

• Membership: Annual subscription granting access to discounted products and exclusive services in warehouses and online.
• Gasoline Sales: Discounted fuel offered exclusively to members at on-site gas stations.
• Pharmacy Services: Prescription fulfillment and pharmaceutical consultations.
• Optical Services: Eye examinations, prescription eyeglasses, contact lenses, and sunglasses.
• Hearing Aid Services: Hearing tests and sales of hearing aids and related accessories.
• Food Court: Quick-service meals and snacks, including popular items like hot dogs and pizza.
• Tire Installation & Repair: Services related to tire mounting, rotation, balancing, and puncture repair.
• Travel Services: Member-exclusive deals on vacation packages, cruises, rental cars, and hotel bookings.

Costco Wholesale (COST) - Major Customers

Costco Wholesale (COST) operates a membership-based warehouse club model and primarily sells directly to its members, who are largely individual consumers and small businesses, rather than to a few major corporate clients. Therefore, its customers can be categorized as follows:

1. Individual/Household Shoppers: These constitute the largest customer segment, typically holding Gold Star memberships. They purchase a wide array of products—including groceries, electronics, apparel, home goods, and services—for personal and family consumption. They are drawn by the value, quality, and convenience offered through bulk purchasing.
2. Small Business Owners & Operators: Many customers hold Business memberships, utilizing Costco to purchase products in bulk for their commercial operations. This includes owners of restaurants, convenience stores, offices, caterers, and other small enterprises who seek competitive pricing on inventory, supplies, and equipment to support their businesses.
3. Value-Conscious & Bulk Buyers: This category emphasizes members across both individual and business segments who are primarily driven by the significant cost savings and efficiency of purchasing large quantities. They often seek out competitive prices on both everyday essentials and premium brands, leveraging Costco's warehouse model for maximum value.

Ron Vachris, President and Chief Executive Officer

Ron Vachris began his career in 1982 as a forklift driver at Price Club, which later merged with Costco. He advanced through various management positions in warehouse operations, merchandising, and real estate. Vachris served as President and Chief Operating Officer from February 2022 to January 2024. In January 2024, he was appointed President and Chief Executive Officer of Costco Wholesale Corporation, becoming the third CEO in the company's history. He is recognized for his operational rigor, engagement with frontline staff, and for upholding Costco's tradition of internal advancement. His leadership emphasizes an employee-centric philosophy and disciplined low-margin strategy.

Gary Millerchip, Executive Vice President and Chief Financial Officer

Gary Millerchip became Executive Vice President and Chief Financial Officer of Costco Wholesale Corporation on March 15, 2024. Prior to joining Costco, he served as Senior Vice President and Chief Financial Officer at The Kroger Co. since April 2019, where he spent 15 years. His career also includes over 20 years in banking, most recently with the NatWest Group (formerly Royal Bank of Scotland) in the U.K.

Claudine Adamo, Executive Vice President, COO - Merchandising

Claudine Adamo has been with Costco for over 30 years, having started in 1982 in a security role at a Kirkland location. She has progressed through various positions, including leadership roles in buying, merchandising, and e-commerce. Adamo has served as Executive Vice President and Chief Operating Officer of Merchandising since February 2022. She is responsible for integrating e-commerce and sustainability into merchandising, and for disciplined product curation.

The continued expansion and integration of Amazon's Prime membership ecosystem poses a clear emerging threat. Amazon Prime directly competes with Costco's membership model by offering a broad array of benefits including expedited shipping, streaming services, and exclusive deals. Furthermore, Amazon's aggressive push into grocery and bulk item delivery through services like Amazon Fresh and Whole Foods, combined with the unparalleled convenience of online ordering and rapid home delivery or pickup, directly challenges Costco's core value proposition of low prices on bulk items available primarily through a physical warehouse visit. This ecosystem offers a similar blend of membership value and bulk purchasing, but with significantly higher convenience, potentially eroding the distinct advantages of Costco's traditional warehouse model over time.

Costco Wholesale Corporation operates a membership-based warehouse club model, offering a diverse array of products and services. Its main offerings span a wide range of retail categories, including groceries, electronics, home goods, and apparel, alongside various ancillary services such as optical centers and pharmacies.

Addressable Market Sizes for Costco's Main Products and Services:

Warehouse Clubs (Overall Market)

• United States: The U.S. warehouse clubs and supercenters market size is estimated at $768.3 billion in 2025. Another estimate indicates the U.S. warehouse club market is expected to reach over $270 billion in 2025.
• Global: The global Warehouse Clubs Market was valued at approximately $1.6 trillion in 2024 and is projected to reach $2.4 trillion by 2032. Another source states the global Warehouse Clubs Market is valued at $667.81 billion in 2025 and is projected to reach $997.23 billion by 2033.

Food & Grocery Retail

• United States: The U.S. grocery retail market is valued at over $900 billion in 2025. The supermarkets & grocery stores industry in the U.S. is $883.1 billion in 2025. The United States food and grocery retailing market was valued at $1.74 trillion in 2024 and is expected to grow to $2.41 trillion by 2034.
• Global: The global food and grocery retail market is expected to grow from $12.8 trillion in 2025 to $17.7 trillion by 2035. Another report estimates the global food and grocery retail market size to be $12,679.54 billion in 2025. The global grocery market size was valued at $13.29 trillion in 2024 and is expected to reach $20.40 trillion by 2032.

Electronics & Appliances Retail

• United States: The U.S. electronics and appliance stores market size stood at $92.61 billion in 2025. The Consumer Electronics Stores industry in the United States is valued at $172.2 billion in 2025. The Consumer Electronics segment in the United States of America registered a market value of $115.73 billion in 2024.
• Global: The global electronics retailing market is estimated to be valued at $1.1 trillion in 2025 and is projected to reach $1.9 trillion by 2035.

Apparel Retail

• United States: The United States apparel market is valued at $365.70 billion in 2025. Another source indicates the U.S. apparel market size was valued at $564.2 billion in 2023.
• Global: The global apparel market is valued at $1.84 trillion in 2025.

Pharmacy Retail

• United States: The U.S. retail pharmacy market is estimated to be $609.2 billion in 2025. The market size of pharmacies & drug stores in the U.S. is $609.6 billion in 2025.

Optical Market

• United States: The total U.S. optical market value was $65.6 billion for 2023 and $68.3 billion for 2024. The overall size of the U.S. optical retail industry was $76.5 billion in 2022. The optical retail chain market in the United States is valued at approximately $20 billion.

Costco Wholesale (COST) is anticipated to drive future revenue growth over the next 2-3 years through several strategic initiatives:

1. New Warehouse Expansion: Costco has aggressive plans for expanding its global footprint. The company intends to open 27 new warehouses in fiscal year 2025, including three relocations, resulting in 24 net new buildings. This expansion is set to continue with plans for 35 new warehouses by August 2026, which includes five relocations for a net addition of 30 stores. These new locations target both domestic and international markets, with specific mentions of Sweden, South Korea, Canada, Spain, Japan, and Mexico.
2. Membership Fee Increases and Growth: A significant driver for Costco's profitability, and thus 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. Furthermore, membership fee revenue has seen substantial increases, with a 14% year-over-year growth for Q4 2025. Costco also continues to demonstrate strong membership growth and high renewal rates, with Executive Memberships increasing by 9.3% and worldwide renewal rates at 89.8% (92.3% in the US and Canada).
3. Growth in E-commerce Sales: Costco has seen consistent double-digit growth in its e-commerce segment. For fiscal year 2025, e-commerce sales grew by over 15%, exceeding $19.6 billion, and digitally enabled sales surpassed $27 billion. Analysts project that e-commerce could be a key factor in Costco exceeding its topline growth expectations for 2025, following a 34.4% year-over-year jump in December 2024.
4. Expansion of Ancillary Businesses and Services: Beyond its core merchandise, Costco offers a range of ancillary services such as gas stations, pharmacies, food courts, optical centers, and tire installation centers. These businesses are a growing revenue stream, with projections for an 8% increase to $54 billion in FY2026. The company has also achieved record fuel sales due to extended gas station hours and is exploring new specialized retail formats, such as an appliance and furniture showroom in Puerto Rico with plans for additional locations.
5. Growth of Kirkland Signature Private Label: The Kirkland Signature private label brand is a significant contributor to Costco's sales and helps maintain its value proposition. Sales of the Kirkland Signature brand have been outpacing the company's overall sales growth. This private label continues to increase its sales penetration, providing high-quality value to members and assisting in mitigating inflationary pressures, thereby driving overall revenue.

Share Repurchases

• Costco reauthorized a common stock repurchase program of up to $4 billion in January 2023, which is set to expire in January 2027. This program replaced a previous $4 billion authorization (adopted in 2019 and expiring April 2023) under which approximately $1.4 billion had been utilized.
• In fiscal year 2024, Costco repurchased approximately $700 million of common stock.
• The company repurchased common stock totaling approximately $676 million in fiscal year 2023, $439 million in fiscal year 2022, $495 million in fiscal year 2021, and $198 million in fiscal year 2020.

Share Issuance

• Costco Wholesale has not undertaken significant share issuances for capital raising purposes over the last 3-5 years. The number of shares outstanding has remained relatively stable, with minor fluctuations typically related to ongoing operational activities such as stock-based compensation.

Outbound Investments

• In 2020, Costco acquired Innovel (Costco Wholesale Logistics) and a minority interest in Navitus.
• In June 2022, Costco purchased the equity interest of its Taiwan operations from its former joint venture partner.

Capital Expenditures

• Costco's capital expenditures were $5,498 million in fiscal year 2025 (expected/stated intention), $4,710 million in fiscal year 2024, $4,323 million in fiscal year 2023, $3,891 million in fiscal year 2022, and $3,588 million in fiscal year 2021.
• The company intends to spend approximately $6,000 to $6,500 million on capital expenditures during fiscal year 2026.
• The primary focus of these capital expenditures is on acquiring land, buildings, and equipment for new and remodeled warehouses, as well as investments in information systems, manufacturing, and distribution facilities. Costco opened 29 net new locations in 2024, 23 net new locations in 2023, and 23 net new locations in 2022.