Costco Wholesale

What Costco Wholesale does

Costco Wholesale Corporation (NASDAQ: COST) is a publicly traded membership warehouse club retailer founded in 1983 and headquartered in Issaquah, Washington. The company operates 928 warehouses across 14 countries including the United States, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland, and New Zealand. Costco sells a curated assortment of approximately 3,700 SKUs of merchandise — including groceries, electronics, appliances, jewelry, tires, and household goods — plus ancillary services such as optical, pharmacy, hearing aid centers, travel, photo, fuel, and most recently fertility care. The business serves three primary member segments: budget-conscious families and households, small business owners (via Costco Business Centers and Costco Business Delivery), and executive/affluent members (via the $130/year Executive tier).

The company runs on a low-margin, high-volume retail model combined with recurring membership fee revenue ($5.3B annually across 82.1M paid memberships, of which 40.4M are executive). Kirkland Signature, Costco's private-label brand, generates approximately $90B in annual sales, accounting for 25-33% of total merchandise sales. The technology stack is anchored by an AI-powered demand forecasting and inventory management platform (integrated with o9 Solutions), a digital personalization engine on Costco.com that drove over $470M in Q2 2026 e-commerce sales, and omnichannel fulfillment through Costco.com, Costco Business Delivery, and a same-day Instacart partnership. The mobile app supports ordering, warehouse locator, and member account management.

Costco generates revenue through two primary streams: merchandise net sales (approximately $270B annually, with $70.53B in Q3 FY2026) and recurring membership fees ($5.3B). Pricing strategy centers on low-margin staples (anchored by the unchanged-since-1985 $1.50 hot dog combo), bulk purchasing efficiency, member-only fuel pricing, and 2% executive rewards up to $1,000. Distribution combines 928 physical warehouse locations, standalone gas stations (first opened June 2026 in Mission Viejo, CA), Costco.com e-commerce, and B2B Business Delivery. Recent FY2026 strategic priorities include 28 new store openings, $200M Mexico expansion, fertility care services, Kirkland Signature energy drinks, and AI-driven operational modernization.

Name

Costco Wholesale

Legal name

Costco Wholesale Corporation

Website

https://costco.com

Company type

Public

Founded year

1983

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Costco Wholesale is a publicly traded membership warehouse club operating 928 warehouses across 14 countries, serving 82.1 million paid members with a curated assortment of approximately 3,700 SKUs, Kirkland Signature private-label goods, and ancillary services including fuel, pharmacy, and optical.

Ownership category

akta.pro rank

Product category

Membership Warehouse Club Retail

NAICS

Warehouse Clubs and Supercenters (455211), Warehouse Clubs, Supercenters, and Other General Merchandise Retailers (45521)

SIC

Retail-Misc General Merchandise Stores (5399)

akta.pro primary industry

Membership Warehouse Clubs (General Merchandise + Grocery) (CRAHACAA)

akta.pro secondary industries

General Merchandise Warehouse Clubs (CRAEADAA), Private-Label-Heavy Membership Clubs (CRAEADAJ), Hybrid Retail-Wholesale Membership Clubs (B2B2C) (CRAEADAD)

Keywords

• Membership warehouse club
• Bulk retail merchandise
• Private label grocery
• Warehouse fuel stations
• Business delivery services

Headquarters

HQ city

Issaquah

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Supply Chain, Operations, Personnel, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Membership fees: Annual and executive membership fees representing a recurring revenue stream. Costco reported $5.3 billion in membership fee revenue with a 92.1% U.S./Canada membership renewal rate. Executive memberships grew 9.5% to 40.4 million members.
2. Merchandise sales (net sales): Warehouse and online merchandise sales including grocery, electronics, appliances, jewelry, tires, and other consumer goods. Costco reported net sales of approximately $68-70 billion per quarter with strong comparable store sales growth.
3. Gasoline sales: Discounted fuel sales at warehouse gas stations that drive membership traffic and attraction. The fuel business contributed approximately 250 basis points to U.S. comparable sales growth during periods of elevated gas prices.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels5 records

Core offering

Costco operates membership-only warehouse clubs that sell a restricted assortment of roughly 3,700 SKUs of bulk merchandise, including groceries, electronics, appliances, tires, jewelry, and Kirkland Signature private-label goods. Members pay annual fees starting at $65 to access low-price bulk goods, discounted gasoline, and ancillary services such as optical, pharmacy, hearing aid, travel, photo, and business delivery.

Product overview

Costco Wholesale is a membership-based warehouse retail chain operating on a single unified platform model with a diversified product and service portfolio. The core offering is warehouse shopping accessible through paid memberships (starting at $65 annually), supplemented by Kirkland Signature private-label products which generate approximately $90 billion in annual sales. The company operates 928 warehouses globally across 14 countries and offers omnichannel services including same-day grocery delivery via Instacart, Costco Business Delivery for commercial customers, and Costco Direct for online specialty purchases. Additional revenue streams include gasoline services (with first standalone stations launching), pharmacy, optical, hearing aid centers, travel services, and photo processing. The digital ecosystem includes personalized e-commerce recommendations, AI-powered demand forecasting, and approximately 23% e-commerce growth driven by digital personalization investments.

Differentiator

Problem solved

Functional benefit

Brands

• Kirkland Signature: Costco's private-label brand generating approximately $90 billion in annual sales, accounting for roughly a quarter to a third of Costco's total merchandise sales of $270 billion
• Costco Next
• Costco Wholesale

Products and services

• Costco Membership Program Annual paid membership program granting individuals and businesses access to warehouse club shopping, member-only pricing on merchandise and fuel, and tiered rewards.
• Kirkland Signature Private Label Brand Costco's flagship private-label brand offering high-quality products across grocery, household, and apparel categories at competitive prices for members.
• Costco Same-Day Delivery (Instacart) Same-day grocery and household item delivery service for Costco members via the Instacart platform.
• Costco Business Delivery B2B e-commerce platform offering bulk quantities and business-specific products for commercial customers.
• Costco Optical Optical services including eye exams, eyeglasses, and contact lenses available at warehouse locations.
• Costco Pharmacy Prescription medication services and pharmacy benefits available at warehouse locations and online.
• Costco Travel Travel booking service offering vacations, hotels, cruises, rental cars, and vacation packages exclusively for Costco members.
• Costco Gasoline Discounted gasoline sold at warehouse-adjacent and standalone gas stations, offering member-only pricing on fuel.
• Costco Photo Center Photo printing and customization services including calendars, prints, photo books, and personalized gifts.
• Costco Direct Online storefront for appliances, fitness equipment, furniture, home upgrades, mattresses, patio items, toys, and TVs with delivery and installation services.
• Costco Hearing Aid Center Professional hearing aid services including testing, fitting, and assisted hearing devices available at warehouse locations.
• Costco Business Centres Specialized warehouse locations focused on business customers, offering bulk purchasing, commercial quantities, full-service pharmacy, and business-specific products.
• Costco Shop Card Costco gift cards available for purchase, usable at all Costco warehouse locations and on Costco.com in various denominations.
• Costco Fertility Care Program Discounted fertility care service offering IVF, egg freezing, and intrauterine insemination through partners Sesame and IVI RMA North America, exclusively to Costco members in the United States.
• Costco Warehouse Clubs (Bulk Merchandise Retail) Membership-only warehouse club stores offering bulk goods across categories including groceries, electronics, jewelry, tires, optical, pharmacy, and food court services across 928 global locations.

Quantifiable outcome

• 12.5% same-store sales growth for the four-week period ending May 31, 2026
• +3 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

AI capability4 records

Feature2 records

Partnerships

Seven partnerships are on record, tiered minor and core.

• Mayhugh Commercial AdvisorsminorOthers · 13 May 2026Commercial real estate brokerage firm that brokered Costco's acquisition of a 55-acre development site at the intersection of Colonial Boulevard and Plantation Road in Fort Myers, Florida for approximately $55 million.
• 321 CoffeeminorChannel Partner/ Reseller/ Distributor · 23 April 2026Raleigh-based coffee company 321 Coffee, employing people with intellectual and developmental disabilities, began selling products at all Costco locations in North Carolina. The company scaled dramatically to fulfill Costco's large wholesale order, roasting 2,000 pounds of beans per day for 10 days to produce and ship 20 pallets of coffee.
• SesamecoreStrategic or Co-development Partner · 18 March 2026Costco partnered with telehealth provider Sesame to offer significant discounts on fertility treatments to Costco members across the United States. The program aims to reduce high out-of-pocket costs associated with fertility treatments, making them more accessible. This partnership extends Costco's healthcare services portfolio beyond pharmacy and optical to include fertility care.
• IVI RMA North AmericacoreStrategic or Co-development Partner · 18 March 2026Costco partnered with fertility clinic IVI RMA North America to provide discounted fertility treatments exclusively to Costco members. Services include IVF, egg freezing, and intrauterine insemination. The partnership represents an expansion of Costco's member health and wellness services.
• HiboyminorChannel Partner/ Reseller/ Distributor · 13 March 2026Electric mobility brand Hiboy launched its C1 compact commuter e-bike at select Costco warehouse locations across the United States. The partnership includes a 20% discount for Costco members and marks Hiboy's expansion from online-first brand to physical retail distribution.
• o9 SolutionscoreTechnology or IntegrationCostco is integrating o9 Solutions' AI-powered platform for demand forecasting and inventory management across its warehouses. This initiative aims to enhance forecasting accuracy, reduce waste, and improve operational efficiency as part of Costco's digital transformation efforts.
• InstacartcoreChannel Partner/ Reseller/ DistributorSame-day grocery delivery partnership enabling Costco members to receive grocery and household item deliveries through Instacart's delivery network, extending Costco's reach beyond warehouse locations.

Scale indicators9 records

Recent moves14 records

Expansion highlights7 records

Broad incumbents

• Walmart: Walmart is the parent of Sam's Club and competes with Costco through low-price grocery, general merchandise, and an expanding membership/shipping program. Broader assortment and footprint, but overlapping value-oriented customer base.
• Target: Target competes with Costco across general merchandise, grocery, and apparel with a value-oriented positioning and its Target Circle 360 paid membership program. Wider SKU breadth but lower unit volume per category compared with Costco's warehouse format.
• Amazon: Amazon competes via Prime (a paid membership model with shipping, video, and discounts), Whole Foods, and Amazon Fresh. Overlaps with Costco on membership-driven loyalty, e-commerce scale, and grocery delivery, though without the warehouse club footprint.
• Kroger: Kroger is the largest U.S. pure-play grocery retailer, competing with Costco on fresh, packaged grocery, and fuel/loyalty programs. Different format (supermarkets) but meaningful overlap in grocery spend and private-label penetration.

Direct peers

• BJ's Wholesale Club: BJ's operates membership warehouse clubs concentrated on the U.S. East Coast, offering groceries, general merchandise, and member-only pricing similar to Costco. Comparable scale, same core warehouse club model, and direct overlap in member demographics.
• Sam's Club (Walmart Inc.): Sam's Club is Walmart's membership warehouse club operating in the U.S. with a comparable assortment of groceries, general merchandise, fuel, and member services. It is the closest direct competitor to Costco in business model, member tier structure, and category mix.

Others

• Lowe's: Lowe's overlaps with Costco's home improvement, appliance, and bulk merchandise categories, and competes for DIY contractor and household spend. Different channel (big-box home improvement), but adjacent in assortment and customer.

Regional players

• PriceSmart: PriceSmart operates membership warehouse clubs across Latin America and the Caribbean, mirroring Costco's format and member-based model. Highly comparable operating model, but geographically focused outside the U.S./Canada core.

Emerging players

• Dollar General: Dollar General is a value-focused discount retailer competing for budget-conscious shoppers and rural/small-format demand that overlaps with Costco's treasure-hunt value proposition. Smaller basket and format, but similar price-sensitive customer.
• Aldi: Aldi is a rapidly expanding hard-discount grocery chain in the U.S. with a private-label-heavy assortment. Competes directly on price with Costco's grocery business and shares the private-label playbook (costco's Kirkland vs Aldi's private brands).

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/college4costco
• Facebookfacebook.com/costco
• LinkedInlinkedin.com/company/costco-wholesale
• Instagraminstagram.com/Costco
• Pinterestpinterest.com/costco

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Costco Wholesale