Costco is an American wholesale corporation, which is a members-only warehouse chain. Costco deals in bulk products at deeply discounted prices. It aims to “continually provide the member with quality goods and services at the lowest price”. Here, let’s know about Costco Statistics.
Costco opened its first warehouse in Seattle in 1983. Costco’s worldwide headquarters are in Issaquah, Washington.
Costco company statistics
Costco works on an inventory business model, that is, it stocks its products in its massive warehouse. Electronics from Apple and Samsung are also stocked in these warehouses
Costco has redefined the shopping experience for America. it is built on a warehouse concept and showcases good quality products
Costco’s warehouse
In 1976, Costco first opened a warehouse in San Diego that catered to small businesses, today it has become a members-only warehouse club operating stores all over America and in other countries. The company has shown extensive growth over the years.
- In 2011, Costco had 592 warehouses, as of 2022 there are 828 Costco warehouses worldwide becoming the fifth largest retailer in the world.
- It has 571 warehouses in America.
- Canada has 105 Costco stores, Mexico has 40 stores, the United Kingdom has 29 stores, Australia has13 stores
- In south-eat Asia, Japan has the maximum number of Costco stores with 30 stores. Korea has 16 stores, Taiwan has 14 stores, and China has 1.
- Spain has three stores, France has two stores, Iceland and China both have 1 store in their country.
Costco revenue generation
Costco is the sixth-largest retailer in the world, with Amazon and Walmart as its competitors. It has a loyal fanbase and has been doing phenomenally well in terms of business. The company has been showing exponential growth in revenue generation
In 2011, the company generated a revenue of $87B and has been consistently showing growth in the following years. In 2020, it generated a revenue of $166B.
Costco has shown a growth of 9.2% in the year from 2019 to 2020
Costco members
Costco is a member-exclusive shopping warehouse. Its increasing popularity has been attributed to ample revenue generation from its membership fee. There has been a rise in the number of people buying Costco memberships.
In 2016, Costco was serving its 86.7 million members the number has shown a sharp increase every year. In 2017, Costco had 90.3 million members. In 2018, the number of members increased to 94.3 million. In 2020, Costco had a whopping number of 105.5 million members.
Costco membership fee
It is evident that with an increase in the number of members, Costco has steadily generated revenue through its membership fee. In 2009, Costco generated $1.53B from its membership fees. It has grown steadily by 5.7% from 2019 to 2020. In 2020, Costco generated $3.54B.
Costco has developed customer-friendly policies that have generated a huge fanbase. A major chunk of the revenue comes from membership fees
Costco’s customer
Costco’s business model is based on selling quality brands in bulk at discounted prices. Costco caters to affluent customers and provides a fun experience for its shoppers. With its membership program, they have a high rate of returning customers. It has an impressive renewal rate of 88%.
Costco’s target market is mostly middle- and upper-income class people. A Costco shopper is typical, between 40 to 50. The shoppers are middle-aged women. Statistics show Asian women are more likely to shop at Costco followed by Hispanics and Caucasians.
Costco Sales
Costco is the first company to grow from 0 to $3 billion in sales. The company offers bulk products to its customers
Costco is a one-stop solution to everything. It has a wide variety of products and services to offer from electronic appliances, clothing, fine wine, home appliances, and jewelry, some of the warehouses have gas stations, and pharmacies.
A customer spends an average of $91.22 to $140.
Costco’s bestselling item is toilet paper selling billions of rolls per year. Its rotisserie chicken is a value-for-money option and a fan favorite. People prefer buying Gas from Costco.
Costco’s employee
Costco is a mammoth corporation that serves millions of people. It has a tremendous workforce meeting up with its customer’s demands.
In 2019, Costco had 250,000 employees. The number has increased in consecutive years with 288,000 employees throughout the world. Costco’s manpower consists of 192,000 employees in America.
In 2020, Costco had 273,000 employees. Its massive workforce has full-time as well as part-time employees
Conclusion
Costco Wholesale Corporation has shown precedented growth, by building a loyal customer base and providing quality products. There has been a continuous growth in revenue that is likely to follow the same exponential path in the future. It works on a warehouse setup
The company has shown a 13% increase in membership revenue from 2019 to 2021. It has a 90% membership renewal rate in the U.S and 91.6% in Canada. The company is planning to open 28 stores and has a budget of $4Billion to be invested in fiscal 2022
