Costco
Costco is a membership-only warehouse club retailer operating 931 warehouses across 14 countries, selling bulk groceries, general merchandise, and Kirkland Signature private-label products to 82.9 million paid members.
- Company typePublic
- Founded1983
- HeadquartersIssaquah, United States
- Headcount5,001–10,000
- GTM typeB2C
- OfferingServices
What Costco does
Costco Wholesale Corporation, founded in 1983 and headquartered in Issaquah, Washington, is a membership-only warehouse club retailer operating 931 warehouses across 14 countries (639 in the US, 115 in Canada, and 177 internationally). It sells a curated assortment of bulk groceries, general merchandise, electronics, apparel, and specialty items under both national brands and its Kirkland Signature private label, with ancillary services including gas stations, pharmacy (including GLP-1 drugs), optical, hearing aids, travel, auto, photo, and business delivery.
Costco's revenue model combines low-margin merchandise sales with high-margin recurring membership fees, priced at $65/year for Gold Star and $130/year for Executive (2% reward up to $1,000). It serves 82.9 million paid members and 148.5 million cardholders, achieving a 92.2% US/Canada renewal rate. Technology layers include AI-powered product recommendations and search on costco.com (3x typical conversion rates, triple-digit AI search traffic growth), the Costco mobile app with digital membership cards, Scan & Pay checkout (8-second transactions), and a Google Commerce Media/YouTube retail media partnership.
The go-to-market relies on physical warehouse expansion (~26 net new units in FY2026, 30+ annually thereafter), the treasure-hunt merchandising model, and gas stations as a membership acquisition engine. Strategic priorities articulated by CFO Gary Millerchip emphasize warehouse openings and remodels as the top capital deployment, while CEO Ron Vachris (who rose from forklift driver to CEO in 2024) oversees continued international expansion including Taiwan, Mexico, and US Sun Belt growth.
Costco firmographics
Firmographics- Name
- Costco
- 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 is a membership-only warehouse club retailer operating 931 warehouses across 14 countries, selling bulk groceries, general merchandise, and Kirkland Signature private-label products to 82.9 million paid members.
- Ownership category
- akta.pro rank
Costco industry classification
Industry- Product category
- Warehouse Club Retail
- NAICS
- Warehouse Clubs and Supercenters (455211), Warehouse Clubs, Supercenters, and Other General Merchandise Retailers (4552)
- SIC
- Retail-Misc General Merchandise Stores (5399)
- akta.pro primary industry
- Membership Warehouse Clubs (General Merchandise + Grocery) (CRAHACAA)
- akta.pro secondary industries
- Private-Label/Own-Brand Warehouse Grocers (CRAHACAG), Private-Label-Heavy Membership Clubs (CRAEADAJ)
Keywords
Where Costco is headquartered
LocationHeadquarters
- HQ city
- Issaquah
- HQ country
- United States
- HQ region
- North America
Offices5 records
Markets served
Costco business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Supply Chain, Infrastructure, Personnel, Operations, Technology or R&D, Marketing or Sales
Revenue model
- Merchandise Sales: Net sales from merchandise across all product categories including groceries, electronics, appliances, jewelry, and home goods. Q3 FY2026 net sales of $69.15 billion, up 11.6% year-over-year.
- Membership Fees: Annual membership fees from Gold Star ($65), Business ($65), and Executive ($130) memberships. Q3 FY2026 membership fee income of $1.37 billion, up 10.7% year-over-year. 82.9 million paid memberships with 92.2% US/Canada renewal rate.
- Gasoline Sales: Fuel sales at Costco gas stations, which have set all-time volume records. Gas prices drive membership sign-ups and foot traffic. Q3 saw over 20% comparable gas sales growth.
- Digital/E-commerce Sales: Online sales through costco.com with digitally-enabled sales growing 21.5% in Q3 FY2026. Same-day delivery via Instacart partnership. Nearly $500 million in digital sales during Q3.
- Pharmacy Services: Pharmacy services including GLP-1 medications (Wegovy, Ozempic) showing significant market share gains. Growing contribution to overall revenue.
- Costco Auto Program: Vehicle sales through partnership with authorized dealerships offering pre-discount pricing on Porsche, Mercedes-Benz, Volvo, and other brands.
- Retail Media: Costco's retail media network contributing nearly $5 billion in e-commerce equivalent sales. Partnership with Google Commerce Media and YouTube for expanded advertising revenue.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | Gold Star Membership - Standard individual/household membership |
| Subscription | Annual | Executive Membership - Premium tier with enhanced benefits |
| Usage-based | Pay-as-you-go | Non-member Instacart Pricing |
| Unit Pricing | Pay-as-you-go | Kirkland Signature Private Label Products |
Go-to-market motion3 records
Distribution channels6 records
Marketing channels7 records
Costco product offering
Product offeringCore offering
Costco operates a global membership-only warehouse club business selling a curated assortment of brand-name and Kirkland Signature private-label merchandise in bulk quantities across groceries, electronics, home goods, apparel, and specialty items. The model is anchored by annual membership fees that provide access to warehouse stores, gas stations, optical, pharmacy, and ancillary services, supported by everyday low pricing on a limited SKU count.
Product overview
Costco Wholesale operates a warehouse club retail model offering a diversified product and service portfolio. The core offering centers on bulk goods across groceries, electronics, home goods, apparel, and specialty items, supported by the Kirkland Signature private-label brand. The business model is membership-based with Gold Star ($65/year) and Executive ($130/year) tiers generating recurring fee revenue. Beyond physical warehouses, Costco extends its ecosystem through ancillary services including gasoline stations, Costco Travel, Costco Optical, Costco Pharmacy, Costco Hearing Aid Center, Costco Auto Program, and Same-Day Delivery via Instacart. Technology innovations include the Costco mobile app with digital membership cards and Scan & Pay checkout functionality. Costco Next provides a marketplace for curated third-party brands, while Treasure Hunt and While Supplies Last limited-time offerings drive member engagement.
Differentiator
Problem solved
Functional benefit
Brands
- Kirkland Signature: Costco's private-label brand offering a wide range of products including groceries, household items, and apparel.
- Costco Wholesale
Products and services
- Kirkland Signature Private Label
- Costco Gasoline
- Costco Travel
- Costco Optical
- Costco Pharmacy
- Costco Hearing Aid Center
- Costco Same-Day Delivery
- Costco Auto Program
- Costco Business Delivery
- Costco Photo Center
- Costco Food Court
- Gold Star Membership
- Executive Membership
- Costco Wholesale Mobile App
Quantifiable outcome
- 11.6% year-over-year net sales growth to $69.15 billion in Q3 FY2026
- +5 more outcomes
Companies that use Costco
Customer profileNamed customers3 records
Segments3 records
Ideal customer profiles2 records
Costco technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
AI capability3 records
Feature4 records
Costco partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core and minor.
- InstacartcoreSame-day delivery partnership allowing Costco members and non-members to order Costco products for home delivery through Instacart's platform. Delivery is growing faster than digital overall and expands Costco's reach beyond warehouse locations.
- Google Commerce Media and YouTubecoreRetail media partnership expanding Costco's advertising reach across Google and YouTube platforms to monetize retail media network estimated at nearly $5 billion equivalent sales.
- Taiwan Retail ExpansionminorRelocating Kaohsiung store to new location that will become Taiwan's largest Costco, demonstrating international expansion through new warehouse openings.
Scale indicators14 records
Recent moves13 records
Expansion highlights7 records
Costco competitors and assessment
Company assessmentDirect peers
- Sam's Club: Walmart-owned membership warehouse club offering identical bulk merchandise, fuel, pharmacy and Scan & Go technology directly competing head-to-head with Costco's U.S. member base.
- BJ's Wholesale Club: U.S. East Coast-focused membership warehouse club selling groceries, general merchandise and gas under a tiered membership model, serving as the most direct smaller-scale competitor to Costco.
Broad incumbents
- Walmart: Largest U.S. retailer and parent of Sam's Club; competes broadly with Costco on price, groceries, and general merchandise through Supercenters and Walmart+ membership program.
- Amazon: E-commerce giant with Prime membership, Whole Foods Market grocery, and Amazon Fresh; competes with Costco on convenience, selection, and recurring membership economics across consumer goods.
- Target: General merchandise and grocery retailer with Target Circle 360 membership; competes with Costco on household goods, apparel and grocery staples at value price points.
- Kroger: Largest pure-play U.S. grocery operator with Boost membership and expanding private-label; overlaps with Costco's grocery and pharmacy value proposition for value-oriented shoppers.
- Dollar General: Small-format discount retailer targeting value shoppers with household consumables; competes for Costco's lower-income and rural member basket, though without bulk grocery format.
Emerging players
- Aldi: Hard-discount grocery chain rapidly expanding in the U.S. with private-label dominance; competes with Costco on price-per-unit for staples and groceries without the membership or warehouse-club format.
Others
- Home Depot: Home-improvement retailer sharing exposure to appliances, tools, and Kirkland-adjacent categories; competes with Costco for big-ticket household purchases and Pro/Business members.
Regional players
- Lidl: European hard-discount grocer with growing U.S. presence offering deep private-label assortment; comparable to Costco on value-driven grocery and household categories across international markets.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks6 records
Key highlights6 records
Customer concentration
Costco social profiles
Digital presenceCostco financial estimates
Financial estimateRevenue estimate
Valuation estimate
Costco leadership team
Management profileNumber of profiles
Profiles4 records
Costco funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Costco M&A and investment
M&A and investmentM&A1 record
Investments2 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Costco
What does Costco do?
Costco operates a global membership-only warehouse club business selling a curated assortment of brand-name and Kirkland Signature private-label merchandise in bulk quantities across groceries, electronics, home goods, apparel, and specialty items. The model is anchored by annual membership fees that provide access to warehouse stores, gas stations, optical, pharmacy, and ancillary services, supported by everyday low pricing on a limited SKU count.
Is Costco a public or private company?
Costco is a public company. It is classified as public and is currently operating.
When was Costco founded?
Costco was founded in 1983. It employs 5,001 to 10,000 people.
Where is Costco based?
Costco is headquartered in Issaquah, United States, in the North America region.
How does Costco make money?
Seven revenue lines are on record. Merchandise Sales are the primary driver. The others are membership Fees, gasoline Sales, digital/E-commerce Sales, pharmacy Services, costco Auto Program and retail Media.
Who are Costco's main competitors?
Direct peers on record are Sam's Club and BJ's Wholesale Club. Broad incumbents are Walmart, Amazon, Target, Kroger and Dollar General. Aldi is listed as an emerging player. Home Depot is listed as an others. Lidl is listed as a regional player.
Does Costco have an API?
No public API is recorded for Costco.
What industry is Costco in?
Costco's product category is Warehouse Club Retail. Its primary akta.pro industry code is CRAHACAA, Membership Warehouse Clubs (General Merchandise + Grocery), with a secondary code of CRAHACAG, Private-Label/Own-Brand Warehouse Grocers. Its NAICS code is 455211 and its SIC code is 5399.