Costco#Costco Connection

{{Short description|American multinational warehouse club chain}}

{{Distinguish|Cosco (disambiguation){{!}}Cosco}}

{{Use mdy dates|date=November 2024}}

{{Infobox company

| name = Costco Wholesale Corporation

| logo = Costco Wholesale logo 2010-10-26.svg

| logo_size = 260px

| logo_caption = Logo since 1997

| image = Costcoheadquarters.jpg

| image_size = 250px

| image_caption = Headquarters in Issaquah, Washington, United States

| type = Public

| traded_as = {{ubl|{{NASDAQ|COST}}|Nasdaq-100 component|S&P 100 component|S&P 500 component}}

| foundation = {{Start date and age|1983|09|15}}
Seattle, Washington, U.S.

| founders = {{ubl|James Sinegal|Jeffrey Brotman}}

| location_city = Issaquah, Washington

| location_country = U.S.

| num_locations = 890

| num_locations_year = 2024

| area_served = {{ubl

| Australia

| Canada

| China

| France

| Iceland

| Japan

| Mexico

| New Zealand

| Puerto Rico

| South Korea

| Spain

| Sweden

| Taiwan

| United Kingdom

| United States

}}

| key_people = {{ubl|Hamilton E. James|(chairman)|Ron Vachris|(president and CEO)}}

| industry = Retail

| brands = Kirkland Signature

| services = {{ubl|Merchandise|Cash & carry|Warehouse club|Gas stations}}

| revenue = {{increase}} {{US$|254.5}}{{nbsp}}billion

| revenue_year = 2024

| operating_income = {{increase}} {{US$|9.285}}{{nbsp}}billion

| income_year = 2024

| net_income = {{increase}} {{US$|7.367}}{{nbsp}}billion

| net_income_year = 2024

| assets = {{increase}} {{US$|69.83}}{{nbsp}}billion

| assets_year = 2024

| equity = {{decrease}} {{US$|23.62}}{{nbsp}}billion

| equity_year = 2024

| members = {{increase}} 136.8{{nbsp}}million

| members_year = 2024

| num_employees = {{increase}} 333,000

| num_employees_year = 2024

| website = {{url|https://www.costco.com/|costco.com}}

| footnotes = {{cite web | title=Costco Wholesale Corporation Reports August Sales Results | website=Costco Wholesale | date=September 1, 2024 | url=https://investor.costco.com/news/news-details/2024/Costco-Wholesale-Corporation-Reports-August-Sales-Results/default.aspx | access-date=September 7, 2024}}{{Cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/909832/000090983224000049/cost-20240901.htm |title=FY 2024 Annual Report (Form 10-K) |date=October 9, 2024 |publisher=U.S. Securities and Exchange Commission}}

}}

File:Costco's original logo 2010-01-16.png

Costco Wholesale Corporation is an American multinational corporation which operates a chain of membership-only big-box warehouse club retail stores.{{cite web|url=http://www.hoovers.com/company-information/cs/company-profile.costco_wholesale_corporation.9acf2327527015f2.html|title=Costco Wholesale Corporation Company Profile|work=Hoover's|access-date=April 17, 2019|archive-date=April 17, 2019|archive-url=https://web.archive.org/web/20190417051323/http://www.hoovers.com/company-information/cs/company-profile.costco_wholesale_corporation.9acf2327527015f2.html|url-status=live}} As of 2021, Costco is the third-largest retailer in the world.{{Cite web |title=Leading retailers worldwide in 2021, by retail revenue |url=https://www.statista.com/statistics/266595/leading-retailers-worldwide-based-on-revenue/ |access-date=October 10, 2023 |website=Statista |archive-date=October 10, 2023 |archive-url=https://web.archive.org/web/20231010165508/https://www.statista.com/statistics/266595/leading-retailers-worldwide-based-on-revenue/ |url-status=live }} As of August 2024, Costco is the world's largest retailer of beef, poultry, organic produce, and wine, and just under one-third of American consumers regularly shop at Costco warehouses.{{cite news |last1=Howe |first1=Ben Ryder |title=How Costco Hacked the American Shopping Psyche |url=https://www.nytimes.com/2024/08/20/dining/costco.html |work=The New York Times |date=August 20, 2024 |url-access=subscription}} This article states that FedMart "became" Costco, which is incorrect. Sol Price founded Price Club after leaving FedMart. Costco is ranked #11 on the Fortune 500 rankings of the largest United States corporations by total revenue.{{Cite web|title=Costco Wholesale |url=https://fortune.com/company/costco/ |access-date=June 4, 2024 |website=Fortune|archive-date=August 16, 2024 |archive-url=https://web.archive.org/web/20240816061230/https://fortune.com/company/costco/ |url-status=live}} Costco originally began with a wholesale business model aimed at enrolling businesses as members, then also began to enroll individual consumers and sell products intended for them, including its own private label brand.{{Cite web |title=What is Costco? |url=https://www.costco.com/about.html |website=Costco |access-date=April 25, 2021 |archive-date=December 31, 2021 |archive-url=https://web.archive.org/web/20211231202853/https://www.costco.com/about.html |url-status=live }}

Costco's worldwide headquarters are in Issaquah, Washington, an eastern suburb of Seattle, although its Kirkland Signature house label bears the name of its former location in Kirkland. The company opened its first warehouse (the chain's term for its retail outlets) in Seattle {{nowrap|in 1983.{{cite news |url=https://news.google.com/newspapers?id=gFdWAAAAIBAJ&pg=4214%2C867318 |work=Spokesman-Review |location=Spokane, Washington |last=Bartel |first=Frank |title=Costco: The new 'wholesale' club |date=December 18, 1983 |page=B1 |access-date=December 18, 2020 |archive-date=April 7, 2022 |archive-url=https://web.archive.org/web/20220407050657/https://news.google.com/newspapers?id=gFdWAAAAIBAJ&pg=4214%2C867318 |url-status=live }}{{Cite news|url=https://www.seattletimes.com/business/retail/costco-co-founder-brotman-has-died-at-74/|title=Death of Costco co-founder Jeff Brotman, 74, 'a complete shock'|date=August 1, 2017|work=The Seattle Times|access-date=November 29, 2017|archive-date=August 15, 2018|archive-url=https://web.archive.org/web/20180815045802/https://www.seattletimes.com/business/retail/costco-co-founder-brotman-has-died-at-74/|url-status=live}}}} Through mergers, however, Costco's corporate history dates back to 1976, when its former competitor Price Club was founded in San Diego, California.and the Canadian head office is situated in Ottawa, Ontario.{{cite web|url=http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-shareholder|title=Costco Wholesale shareholder info|publisher=Costco Wholesale|access-date=May 11, 2007|archive-date=March 22, 2015|archive-url=https://web.archive.org/web/20150322013556/http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-shareholder|url-status=live}}{{Cite web |title=About Costco |url=https://www.costco.com/about.html |url-status=live |archive-url=https://web.archive.org/web/20211231202853/https://www.costco.com/about.html |archive-date=December 31, 2021 |access-date=April 25, 2021 |publisher=Costco Wholesale}}{{cite web|url=http://media.corporate-ir.net/media_files/irol/83/83830/H_highlights2.pdf|title=Costco Wholesale Historical Highlights|publisher=Costco Wholesale|date=February 12, 2009|access-date=November 27, 2009|archive-date=January 21, 2012|archive-url=https://web.archive.org/web/20120121185902/http://media.corporate-ir.net/media_files/irol/83/83830/H_highlights2.pdf|url-status=live}} {{As of|2024|11}}, Costco operates 890 warehouses worldwide: 616 in the United States and Puerto Rico, 109 in Canada, 41 in Mexico, 36 in Japan, 29 in the United Kingdom, 19 in South Korea, 15 in Australia, 14 in Taiwan, 7 in China, 5 in Spain, 2 in France, 1 in Iceland, 1 in New Zealand, and 1 in Sweden.{{cite web | title=Form 10-Q | website=SEC.gov | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/909832/000090983224000079/cost-20241124.htm | access-date=24 December 2024}}

History

=Price Club=

{{main|Price Club}}

File:Icelandic Costco membership card.jpg

Costco's earliest predecessor, Price Club, opened its first store on July 12, 1976, on Morena Boulevard in San Diego, California. It was founded three months earlier by Sol Price and his son, Robert, following a dispute with the new owners of FedMart, Price's previous membership-only discount store.{{cite news |last=Ramirez |first=Anthony |date=February 2, 1982 |title=Sol Price Knows How to Spur Competition |at=Part IV, pp. [https://www.newspapers.com/clip/94561924/sol-price-knows-how-to-spur-competition/ 1], [https://www.newspapers.com/clip/94561931/sol-price-knows-how-to-spur-competition/ 15] |work=Los Angeles Times |url=https://www.newspapers.com/clip/94561924/sol-price-knows-how-to-spur-competition/ |via=Newspapers.com |access-date=February 8, 2022 |archive-date=February 9, 2022 |archive-url=https://web.archive.org/web/20220209054042/https://www.newspapers.com/clip/94561924/sol-price-knows-how-to-spur-competition/ |url-status=live }} Price Club was among the first retail warehouse clubs, beginning with its Morena Boulevard store inside a series of old airplane hangars once owned by Howard Hughes.{{Cite web |title=About Costco |url=https://www.costco.com/about.html |publisher=Costco Wholesale |url-status=dead |archive-url=https://web.archive.org/web/20211231202853/https://www.costco.com/about.html |archive-date=December 31, 2021 |access-date=April 25, 2021}}{{cite news |last=Monteagudo |first=Merrie |date=August 1, 2021 |title=From the Archives: First Price Club opens in San Diego 45 years ago |url=https://www.sandiegouniontribune.com/news/local-history/story/2021-08-01/from-the-archives-price-club-opened-first-superstore-in-san-45-years-ago |work=San Diego Union-Tribune |access-date=February 8, 2022 |archive-date=February 9, 2022 |archive-url=https://web.archive.org/web/20220209055757/https://www.sandiegouniontribune.com/news/local-history/story/2021-08-01/from-the-archives-price-club-opened-first-superstore-in-san-45-years-ago |url-status=live }} The store, known as Costco Warehouse #401, is still in operation today.{{cite web|url=https://www.costco.com/warehouse-locations/morena-san-diego-ca-401.html|title=Morena Warehouse|publisher=Costco Wholesale|access-date=July 9, 2018|archive-date=July 10, 2018|archive-url=https://web.archive.org/web/20180710041908/https://www.costco.com/warehouse-locations/morena-san-diego-ca-401.html|url-status=live}}{{cite web |last=Michelson |first=Alan |title=Hughes Aircraft Company, Warehouse #401, San Diego, CA |url=https://pcad.lib.washington.edu/building/6230/ |work=Pacific Coast Architecture Database |access-date=February 8, 2022 |archive-date=February 9, 2022 |archive-url=https://web.archive.org/web/20220209055755/https://pcad.lib.washington.edu/building/6230/ |url-status=live }}

Price Club's sales model targeted small business owners, selling items in bulk for a discounted price at no-frills outlets that were accessible only with an annual membership fee.{{cite news |last=Kraul |first=Chris |date=May 4, 1986 |title=No-frills shopping produces plentiude for penny-pinchers |page=F7 |work=The Bradenton Herald |agency=Knight-Ridder Newspapers |url=https://www.newspapers.com/clip/94562383/no-frills-shopping-produces-plentiude/ |via=Newspapers.com |access-date=February 8, 2022 |archive-date=February 9, 2022 |archive-url=https://web.archive.org/web/20220209054043/https://www.newspapers.com/clip/94562383/no-frills-shopping-produces-plentiude/ |url-status=live }} The company launched an initial public offering in 1980 and expanded to 24 locations in the Southwest and 1.1 million members by early 1986. Price Club expanded into Canada in 1986, opening a store in Montreal,{{cite news |last=Bryan |first=Jay |date=September 11, 1986 |title=Second giant discount shopping club set to open in Montreal |page=E1 |work=Montreal Gazette |url=https://www.newspapers.com/clip/94562977/second-giant-discount-shopping-club-set/ |via=Newspapers.com |access-date=February 8, 2022 |archive-date=February 9, 2022 |archive-url=https://web.archive.org/web/20220209055757/https://www.newspapers.com/clip/94562977/second-giant-discount-shopping-club-set/ |url-status=live }} followed by a Mexico City store in 1992 as part of a joint venture with hypermarket chain Controladora Comercial Mexicana.{{cite news |date=December 17, 1992 |title=Price Club moving into Spain, Portugal |page=D3 |work=San Francisco Examiner |agency=Associated Press |url=https://www.newspapers.com/clip/94563018/price-club-moving-into-spain-portugal/ |via=Newspapers.com |access-date=February 8, 2022 |archive-date=February 9, 2022 |archive-url=https://web.archive.org/web/20220209055759/https://www.newspapers.com/clip/94563018/price-club-moving-into-spain-portugal/ |url-status=live }} The company also announced plans to open stores in Spain and Portugal through their Canadian subsidiary.

=Costco opens=

Jim Sinegal and Jeffrey H. Brotman{{cite web|last=Chesley|first=Frank|url=http://www.historylink.org/index.cfm?DisplayPage=output.cfm&file_id=8172|title=Biography of Jeffrey Brotman|website=Historylink.org|date=June 6, 2007|access-date=February 20, 2012|archive-date=May 18, 2016|archive-url=https://web.archive.org/web/20160518000429/http://www.historylink.org/index.cfm?DisplayPage=output.cfm&file_id=8172|url-status=live}} opened the first Costco warehouse in Seattle on September 15, 1983.{{cite news |last1=Conroy |first1=Bill |title=Costco's First Warehouse Store Was a Springboard to Global Growth |url=https://www.seattlebusinessmag.com/retail/costcos-first-warehouse-store-was-springboard-global-growth |access-date=January 10, 2022 |work=Seattle Business |date=September 2019 |archive-date=July 18, 2022 |archive-url=https://web.archive.org/web/20220718051119/https://www.seattlebusinessmag.com/retail/costcos-first-warehouse-store-was-springboard-global-growth |url-status=live }} Sinegal had started in wholesale distribution by working for Sol Price at FedMart; Brotman, an attorney from an old Seattle retailing family, had also been involved in retail distribution from an early age. During this time, small businesses were given an 8% or 9% discount on inventories.{{Cite web |last=Wilma |first=David |title=First Costco discount warehouse opens in Seattle on September 15, 1983. |url=https://www.historylink.org/File/3609 |access-date=May 16, 2022 |work=HistoryLink |archive-date=May 16, 2022 |archive-url=https://web.archive.org/web/20220516220104/https://www.historylink.org/File/3609 |url-status=live }} Sinegal began his retail involvement as a grocery bagger.{{Cite news |last=Wohl |first=Jessica |date=September 1, 2011 |title=Costco CEO's legacy continues as he steps down |url=https://www.reuters.com/article/us-costco/costco-ceos-legacy-continues-as-he-steps-down-idUSTRE7805VW20110901 |url-status=live |archive-url=https://web.archive.org/web/20180206190206/https://www.reuters.com/article/us-costco/costco-ceos-legacy-continues-as-he-steps-down-idUSTRE7805VW20110901 |archive-date=February 6, 2018 |access-date=February 5, 2018 |work=Reuters}} A second store opened in Portland in October, and a third in Spokane in {{nowrap|December 1983.}} The company went public in 1985 with 17 warehouses nationally and 1,950 employees.{{cite news |last=Ramsey |first=Bruce |date=October 15, 1985 |title=Costco has hopes worth millions |page=B9 |work=Seattle Post-Intelligencer}} The company was initially headquartered at its first warehouse in Seattle but moved its headquarters to Kirkland in 1987.

=The "PriceCostco" merger=

In 1993, Costco and Price Club agreed to merge operations after Price declined an offer from Walmart to merge Price Club with their warehouse store chain, Sam's Club.{{cite magazine|url=https://money.cnn.com/magazines/fortune/fortune_archive/2003/11/24/353756/index.htm|title=Sol Price On Off-Price|date=November 24, 2003|magazine=Fortune|author1=Price, Sol|author2=Helyar, John|author3=Harrington, Ann|access-date=August 3, 2020|archive-date=January 17, 2021|archive-url=https://web.archive.org/web/20210117200324/https://money.cnn.com/magazines/fortune/fortune_archive/2003/11/24/353756/index.htm|url-status=live}} Costco's business model and size were similar to those of Price Club, which made the merger more natural for both companies. The combined company took the name PriceCostco, and memberships became universal, meaning that a Price Club member could use their membership to shop at Costco and vice versa. PriceCostco boasted 206 locations generating $16{{nbsp}}billion in annual sales. PriceCostco was initially led by executives from both companies, but in 1994, the Prices left the company to form PriceSmart,{{cite web |url=http://edgar.secdatabase.com/2674/91205794003984/filing-main.htm |title=Costco, Form SC 13E4, Filing Date Nov 21, 1994 |website=secdatabase.com |access-date=March 29, 2013 |archive-date=May 22, 2013 |archive-url=https://web.archive.org/web/20130522040503/http://edgar.secdatabase.com/2674/91205794003984/filing-main.htm |url-status=live }} a warehouse club chain in Central America and the Caribbean unrelated to the current Costco.{{cite web |url=http://www.fundinguniverse.com/company-histories/PriceCostco-Inc-Company-History.html |title=PriceCostco Company History |website=FundingUniverse |access-date=January 3, 2008 |archive-date=January 22, 2012 |archive-url=https://web.archive.org/web/20120122043928/http://www.fundinguniverse.com/company-histories/PriceCostco-Inc-Company-History.html |url-status=live }}

Costco moved its headquarters from Kirkland to Issaquah in 1996. It chose to build a new headquarters campus next to a warehouse store to allow buyers to check sales and merchandise.{{cite news |last1=Buck |first1=Richard |last2=Lopez Williams |first2=Sarah |date=March 17, 1996 |title=The East Rises |page=A1 |work=The Seattle Times}} They had originally planned to move by December 1993 to Redmond, another Eastside city, but delays in road construction near the warehouse site caused the company to reconsider.{{cite news |last=Long |first=Katherine |date=June 16, 1994 |title=Redmond won't get a Costco store after all |page=B1 |url=https://archive.seattletimes.com/archive/?date=19940616&slug=1915956 |work=The Seattle Times |access-date=June 29, 2023 |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630011310/https://archive.seattletimes.com/archive/?date=19940616&slug=1915956 |url-status=live }} The former Kirkland headquarters, a {{convert|10.7|acre|ha|adj=mid}} campus, was sold in late 1996.{{cite news |date=September 6, 1996 |title=Former Price-Costco land and buildings to be sold |page=B2 |work=Seattle Post-Intelligencer}}

The company began testing store conversions to Costco branding across the Southwestern United States in late 1996. It officially reverted to using the Costco name and stock symbol in February 1997, with all remaining Price Club locations subsequently rebranded as Costco.{{cite news |title=PriceCostco back to Costco |work=The Seattle Times |date=February 6, 1997 |page=D2}}{{cite news |title=Costco changing name of Price/Costco units |url=https://www.supermarketnews.com/archive/costco-changing-name-pricecostco-units |access-date=July 2, 2023 |work=Supermarket News |publisher=Informa |date=March 10, 1997 }}

In March 2020, Costco announced the acquisition of Innovel, a logistics company, for one billion dollars.{{Cite web |title=Costco buys logistics firm Innovel for $1 billion |url=https://www.reuters.com/article/us-innovel-m-a-costco/costco-buys-logistics-firm-innovel-for-1-billion-idUSKBN2142CM/ |website=reuters}}

=Other company milestones=

The first Costco warehouse in Seattle was replaced with a new building on an adjacent lot to the north in March 2005;{{cite web |date=December 14, 2005 |title=Costco Wholesale Annual Report 2005 |page=2 |url=https://s201.q4cdn.com/287523651/files/doc_financials/2005/ar/CostcoAnnualReportFY2005.pdf |publisher=Costco Wholesale Corporation |accessdate=June 29, 2023 |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630015744/https://s201.q4cdn.com/287523651/files/doc_financials/2005/ar/CostcoAnnualReportFY2005.pdf |url-status=live }} the company was able to arrange to keep the same address for the new building, which was on land acquired from Seattle Public Schools.{{cite news |last=Batsell |first=Jake |date=December 9, 2003 |title=Costco wins council OK for larger store |page=B3 |work=The Seattle Times}} The original building was demolished and replaced by a parking lot, gas station, and car wash—the company's first—that opened in 2006.{{cite news |last=Millares Bolt |first=Kristen |date=December 13, 2005 |title=Costco carwash planned in Sodo |page=C3 |work=Seattle Post-Intelligencer}}{{cite news |last=Harris |first=Craig |date=February 1, 2007 |title=CEO sees even more growth in 2007 |page=E1 |work=Seattle Post-Intelligencer}}

In 2014, Costco was the third largest retailer in the United States.{{cite web|url=https://nrf.com/2014/top100-table|title=Top 100 Retailers (2014)|publisher=National Retail Federation|access-date=May 17, 2015|archive-date=September 5, 2015|archive-url=https://archive.today/20150905003949/https://nrf.com/2014/top100-table|url-status=live}} That year Costco announced plans to open an online store in China using Alibaba Group.{{cite news |last=Ramakrishnan |first=Sruthi |date=October 14, 2014 |title=Costco to enter China through Alibaba's Tmall |url=https://www.reuters.com/article/us-costco-wholesale-china-idUSKCN0I314K20141014 |url-status=live |archive-url=https://web.archive.org/web/20151019055927/http://www.reuters.com/article/2014/10/14/us-costco-wholesale-china-idUSKCN0I314K20141014 |archive-date=October 19, 2015 |access-date=June 30, 2017 |publisher=Reuters}}

Costco announced the opening of 29 new locations in 2016, the most in one year since 2007.{{cite news |date=March 22, 2013 |title=Costco to Open 28 Locations in 2013 |url=http://www.andnowuknow.com/behind-greens/costco-open-28-locations-2013 |url-status=dead |archive-url=https://web.archive.org/web/20141028061228/http://www.andnowuknow.com/behind-greens/costco-open-28-locations-2013 |archive-date=October 28, 2014 |access-date=October 23, 2013 |work=Produce Industry News}}{{cite web |title=Costco Wholesale Historical Highlights |url=http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjUyNzMxfENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=636174246029002485 |format=PDF |date=December 15, 2016 |access-date=October 22, 2017 |publisher=Costco Wholesale |archive-date=June 30, 2017 |archive-url=https://web.archive.org/web/20170630115033/http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjUyNzMxfENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=636174246029002485 |url-status=live }} Span Construction, led by King Husein, has constructed almost all of Costco's buildings since 1989.[https://www.metalconstructionnews.com/metal-construction-hall-of-fame/king-husein-2014 "King Husein: On the back of a simple concept, Husein has built a business that has transformed an industry"] {{Webarchive|url=https://web.archive.org/web/20200327185938/https://www.metalconstructionnews.com/metal-construction-hall-of-fame/king-husein-2014 |date=March 27, 2020 }}, Metal Construction News, October 31, 2014. Retrieved on March 27, 2020.

Costco opened its first warehouse in China on August 27, 2019, in Shanghai. The store attracted so many customers that it had to close after only a couple of hours.{{Cite book |last=Mao |first=Lin |title=China under Xi Jinping: A New Assessment |publisher=Leiden University Press |year=2024 |isbn=9789087284411 |editor-last=Fang |editor-first=Qiang |pages=327 |chapter=From Trade War to New Cold War: Popular Nationalism and the Global Times on Weibo under Xi Jinping |editor-last2=Li |editor-first2=Xiaobing}}

The first Costco in New Zealand was first opened at West Auckland in September 2022,{{Cite web |last=Mcilraith |first=Rob Stock and Brianna |date=September 27, 2022 |title=Shoppers get first taste of Costco in New Zealand - but is it cheaper? |url=https://www.stuff.co.nz/business/130006625/shoppers-get-first-taste-of-costco-in-new-zealand--but-is-it-cheaper |url-status=live |archive-url=https://web.archive.org/web/20220928021913/https://www.stuff.co.nz/business/130006625/shoppers-get-first-taste-of-costco-in-new-zealand--but-is-it-cheaper |archive-date=September 28, 2022 |access-date=September 29, 2022 |website=Stuff }}{{Cite web |last=Gibson |first=Anne |date=September 27, 2022 |title=Hundreds queue for Costco opening day; shoppers hoping for bargains |url=https://www.nzherald.co.nz/business/costco-nz-opening-what-makes-new-store-globally-unique/URN4JK5QCSHTGWAYSCXR7FLHYY/ |url-status=live |archive-url=https://web.archive.org/web/20220927212228/https://www.nzherald.co.nz/business/costco-nz-opening-what-makes-new-store-globally-unique/URN4JK5QCSHTGWAYSCXR7FLHYY/ |archive-date=September 27, 2022 |access-date=September 29, 2022 |website=The New Zealand Herald }} delayed from mid-August due to the economic impact of the COVID-19 pandemic.{{Cite web|url=https://www.rnz.co.nz/news/business/474774/nz-s-first-costco-announces-opening-date|title=NZ's first Costco announces opening date|date=September 14, 2022|website=RNZ |access-date=September 29, 2022|archive-date=September 29, 2022|archive-url=https://web.archive.org/web/20220929031627/https://www.rnz.co.nz/news/business/474774/nz-s-first-costco-announces-opening-date|url-status=live}}

=Costco today=

In the United States, Costco's main competitors operating membership warehouses are Sam's Club (a subsidiary of Walmart) and BJ's Wholesale Club.{{cite web |last=Corral |first=Cecile |date=July 20, 2009 |title=BJ's Smaller in Store Size but Mightier in SKU Count |url=https://www.hometextilestoday.com/industry-news/bjs-smaller-in-store-size-but-mightier-in-sku-count-2/ |url-status=live |archive-url=https://web.archive.org/web/20091101015803/http://www.hometextilestoday.com/article/CA6672296.html |archive-date=November 1, 2009 |access-date=October 28, 2009 |work=Home Textiles Today}} Costco employs 316,000 full and part-time employees worldwide.{{cite web | title=Company Profile | website=Costco Wholesale Corporation | url=https://investor.costco.com/company-profile/default.aspx | access-date=May 6, 2024 | archive-date=May 28, 2023 | archive-url=https://web.archive.org/web/20230528044052/https://investor.costco.com/company-profile/default.aspx | url-status=live }} Costco had 90.3{{nbsp}}million members in 2017.{{cite web |url=http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-newsArticle&ID=2390584 |title=Costco Corporate Profile |publisher=Costco Wholesale |access-date=March 10, 2019 |archive-date=March 10, 2019 |archive-url=https://web.archive.org/web/20190310054203/http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-newsArticle&ID=2390584 |url-status=live }} In 2020, Costco had 105.5{{nbsp}}million members. In 2021, the company had 111.6{{nbsp}}million members. {{As of|November 2023}}, Costco had 129.5{{nbsp}}million members.

Costco was the first company to grow from $0 in sales to $3{{nbsp}}billion in sales in under six years. For the fiscal year ending on August 31, 2012, the company's sales totaled $97.062{{nbsp}}billion, with $1.709{{nbsp}}billion net profit.{{cite web |url=http://pdf.secdatabase.com/1732/0001193125-12-428890.pdf |title=Costco, Form 10-K, Annual Report, Filing Date Oct 19, 2012 |publisher=secdatabase.com |access-date=March 28, 2013 |archive-date=January 20, 2021 |archive-url=https://web.archive.org/web/20210120132615/http://pdf.secdatabase.com/1732/0001193125-12-428890.pdf |url-status=live }} {{As of|2019}}, Costco is ranked #14 on the Fortune 500 rankings of the largest United States corporations by total revenue.{{Cite news|url=https://fortune.com/fortune500/2019/costco|title=Costco|website=Fortune|access-date=August 20, 2019|archive-date=August 20, 2019|archive-url=https://web.archive.org/web/20190820202113/https://fortune.com/fortune500/2019/costco|url-status=live}} The ACSI (The American Customer Satisfaction Index) named Costco number one in the specialty retail store industry with a score of 84 in 2014.{{cite web|url=http://www.theacsi.org/index.php?option=com_content&view=article&id=149&catid=&Itemid=214&c=Costco|title=Benchmarks by Company|work=American Customer Satisfaction Index (ACSI)|access-date=May 17, 2015|archive-date=May 18, 2015|archive-url=https://web.archive.org/web/20150518110432/http://www.theacsi.org/index.php?option=com_content&view=article&id=149&catid=&Itemid=214&c=Costco|url-status=live}}

From December 2013, Costco's board of directors was chaired by co-founder Jeffrey H. Brotman and included James Sinegal, co-founder and director, and two officers of the company: president/CEO W. Craig Jelinek and CFO Richard A. Galanti. On August 1, 2017, Jeffrey Brotman died.{{cite news|url=https://money.cnn.com/2017/08/01/news/costco-co-founder-jeff-brotman-dies/index.html|title=Costco's co-founder and chairman dies|first=Julia|last=Horowitz|work=CNNMoney |date=August 2017|access-date=August 3, 2020|archive-date=October 1, 2020|archive-url=https://web.archive.org/web/20201001054729/https://money.cnn.com/2017/08/01/news/costco-co-founder-jeff-brotman-dies/index.html|url-status=live}} {{As of|2017|August}}, James Sinegal and W. Craig Jelinek remained on the board. Jim Sinegal stepped down in 2018.

Locations

[[File:Costco footprint map USA 2021-01.png|250px|thumb|right|Map of Costco warehouses in the US, as well as parts of Canada, Mexico and Puerto Rico (January 2021)

Red: Wholesale locations

Blue: Business center locations]]

File:Costco footprint map Mexico 2021-01.png

File:Costco global locations.svg

{{As of|2024|9}}, Costco operates 890 warehouses worldwide:

  • 616 in the United States, including Puerto Rico
  • 109 in Canada
  • 41 in Mexico
  • 36 in Japan
  • 29 in the United Kingdom
  • 19 in South Korea
  • 15 in Australia
  • 14 in Taiwan
  • 7 in China
  • 5 in Spain
  • 2 in France
  • 1 in Iceland
  • 1 in New Zealand
  • 1 in Sweden

=International locations=

File:Costco_Perth-Front_Enterance_(During_First_Morning).jpg

File:Aerial perspective of the Costco roof at the Docklands. March 2019.jpg

Warehouses outside the US are similar to the company's domestic locations, featuring generally identical layout, signage, and even parking lot markings.{{Cite web |title=Costco Villa Coapa · C. Puente 186, Coapa, Amsa, Tlalpan, 14380 Coapa, CDMX, Mexico |url=https://www.google.com/maps?q=Costco+Villa+Coapa,+C.+Puente+186,+Coapa,+Amsa,+Tlalpan,+14380+Coapa,+CDMX,+Mexico&ftid=0x85ce010440a886a9:0x682044076c95fe0d&hl=en-US&gl=us&entry=gps&lucs=a2&shorturl=1 |access-date=May 16, 2022 |website=Costco Villa Coapa · C. Puente 186, Coapa, Amsa, Tlalpan, 14380 Coapa, CDMX, Mexico |archive-date=May 16, 2022 |archive-url=https://web.archive.org/web/20220516220103/https://www.google.com/maps?q=Costco+Villa+Coapa,+C.+Puente+186,+Coapa,+Amsa,+Tlalpan,+14380+Coapa,+CDMX,+Mexico&ftid=0x85ce010440a886a9:0x682044076c95fe0d&hl=en-US&gl=us&entry=gps&lucs=a2&shorturl=1 |url-status=live }}{{Cite web |title=Costco Chingford · 1, Off Shadbolt Ave, Harbet Rd, London E4 8GP, United Kingdom |url=https://www.google.com/maps?q=1,+Costco+Chingford,+Off+Shadbolt+Ave,+Harbet+Rd,+London+E4+8GP,+United+Kingdom&ftid=0x48761e71d73f1f51:0xc0d1b382406f19f2&hl=en-US&gl=us&entry=gps&lucs=a2&shorturl=1 |access-date=May 16, 2022 |website=Costco Chingford · 1, Off Shadbolt Ave, Harbet Rd, London E4 8GP, United Kingdom |archive-date=May 16, 2022 |archive-url=https://web.archive.org/web/20220516220105/https://www.google.com/maps?q=1,+Costco+Chingford,+Off+Shadbolt+Ave,+Harbet+Rd,+London+E4+8GP,+United+Kingdom&ftid=0x48761e71d73f1f51:0xc0d1b382406f19f2&hl=en-US&gl=us&entry=gps&lucs=a2&shorturl=1 |url-status=live }}{{Cite web |title=Costco Wholesale Iceland · Kauptún 3, 210 Gardabaer, Iceland |url=https://www.google.com/maps?q=Costco+Wholesale+Iceland,+Kaupt%C3%BAn+3,+210+Gardabaer,+Iceland&ftid=0x48d60ce62fda2ba1:0x11fbf09ec10531a8&hl=en-US&gl=us&entry=gps&lucs=a2&shorturl=1 |access-date=May 16, 2022 |website=Costco Wholesale Iceland · Kauptún 3, 210 Gardabaer, Iceland |archive-date=May 16, 2022 |archive-url=https://web.archive.org/web/20220516220106/https://www.google.com/maps?q=Costco+Wholesale+Iceland,+Kaupt%C3%BAn+3,+210+Gardabaer,+Iceland&ftid=0x48d60ce62fda2ba1:0x11fbf09ec10531a8&hl=en-US&gl=us&entry=gps&lucs=a2&shorturl=1 |url-status=live }}{{Cite web |title=コストコホールセール 多摩境倉庫店 · 3 Chome-6-1 Oyamagaoka, Machida, Tokyo 194-0215, Japan |url=https://www.google.com/maps?q=%E3%82%B3%E3%82%B9%E3%83%88%E3%82%B3%E3%83%9B%E3%83%BC%E3%83%AB%E3%82%BB%E3%83%BC%E3%83%AB+%E5%A4%9A%E6%91%A9%E5%A2%83%E5%80%89%E5%BA%AB%E5%BA%97,+3+Chome-6-1+Oyamagaoka,+Machida,+Tokyo+194-0215,+Japan&ftid=0x60191d56ffb10001:0xdb0fd35c4c864528&hl=en-US&gl=us&entry=gps&lucs=a2&shorturl=1 |access-date=May 16, 2022 |website=コストコホールセール 多摩境倉庫店 · 3 Chome-6-1 Oyamagaoka, Machida, Tokyo 194-0215, Japan |archive-date=May 16, 2022 |archive-url=https://web.archive.org/web/20220516220104/https://www.google.com/maps?q=%E3%82%B3%E3%82%B9%E3%83%88%E3%82%B3%E3%83%9B%E3%83%BC%E3%83%AB%E3%82%BB%E3%83%BC%E3%83%AB+%E5%A4%9A%E6%91%A9%E5%A2%83%E5%80%89%E5%BA%AB%E5%BA%97,+3+Chome-6-1+Oyamagaoka,+Machida,+Tokyo+194-0215,+Japan&ftid=0x60191d56ffb10001:0xdb0fd35c4c864528&hl=en-US&gl=us&entry=gps&lucs=a2&shorturl=1 |url-status=live }}{{Unreliable source? | date=August 2023 | reason=It must be their information on the website. Not Google maps}} Food court menus are tailored to international tastes, with meat pies on offer in Australia; poutine in Canada and France; seafood-topped pizza in Asian locations; pastor taco-topped pizzas in Mexico; clam chowder in Japan, South Korea, and Taiwan; plokkfiskur in Iceland; and jacket potatoes in the UK.{{cite web|url=http://www.buckscoop.com.au/forums/deals-bargains-coupons-vouchers-cashback/18228-costco-melbourne-docklands-prices-list-comparison-updated.html |title=Costco Melbourne Docklands Prices List – Comparison *Updated* |work=BuckScoop |access-date=August 30, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090821124412/http://www.buckscoop.com.au/forums/deals-bargains-coupons-vouchers-cashback/18228-costco-melbourne-docklands-prices-list-comparison-updated.html |archive-date=August 21, 2009 }}

In Canada, it is a participant in the voluntary Scanner Price Accuracy Code managed by the Retail Council of Canada.{{cite web|url=https://www.cbc.ca/news/business/price-code-free-1.6263904|title=Attention shoppers: Overcharged for an item at checkout? You might be able to get it for free|last=Harris|first=Sophia|publisher=CBC News|date=November 28, 2021|access-date=November 28, 2021|archive-date=December 8, 2021|archive-url=https://web.archive.org/web/20211208190633/https://www.cbc.ca/news/business/price-code-free-1.6263904|url-status=live}}

=Largest and smallest locations=

In 2005, the world's largest Costco by square feet was warehouse #692 in Hillsboro, Oregon with {{cvt|148,663|sqft}}.{{cite journal|title=At 40% larger, new Costco prototype redefines big|journal=DSN Retailing Today|date=December 2005|last=Desjardins|first=Doug|volume=44|issue=23|page=4}}{{Cite web |last=Gretchen |first=Fehrenbacher |date=September 6, 2001 |title=Costco to build in Hillsboro, Albany store underway {{!}} Daily Journal of Commerce |url=https://djcoregon.com/news/2001/09/06/costco-to-build-in-hillsboro-albany-store-underway/,%20https://djcoregon.com/news/2001/09/06/costco-to-build-in-hillsboro-albany-store-underway/ |access-date=July 8, 2024 |website=Daily Journal of Commerce |language=en-US}} In 2015, Costco completed an expansion in Salt Lake City, Utah, making it the new largest Costco at {{cvt|235,000|sqft}}.{{cite news |last=Lee |first=Jasen |date=October 30, 2015 |title=Salt Lake Costco becomes largest in the world |url=http://www.deseretnews.com/article/865640337/Salt-Lake-Costco-becomes-largest-in-the-world.html?pg=all |url-status=dead |archive-url=https://web.archive.org/web/20160501110631/http://www.deseretnews.com/article/865640337/Salt-Lake-Costco-becomes-largest-in-the-world.html?pg=all |archive-date=May 1, 2016 |access-date=May 9, 2016 |work=Deseret News}}

Costco is currently working on getting approval to build their new largest ever retail store in Fresno, California at {{cvt|241,000|sqft}}.{{cite web |date=September 12, 2023 |title=Costco To Build Its World's Largest Store |url=https://www.rli.uk.com/costco-to-build-its-worlds-largest-store/ |access-date=May 6, 2024 |website=Retail & Leisure International |archive-date=December 28, 2023 |archive-url=https://web.archive.org/web/20231228234534/https://www.rli.uk.com/costco-to-build-its-worlds-largest-store/ |url-status=live }}

In 2019, Costco opened its biggest store in Canada, in St. John's, Newfoundland and Labrador; the store is {{cvt|182,000|sqft}}.{{cite news |publisher=BNN Bloomberg |date=June 28, 2019 |title=Largest Costco in Canada opens in St. John's |url=https://www.bnnbloomberg.ca/largest-costco-in-canada-opens-in-st-john-s-1.1280121 |access-date=March 15, 2021 |archive-date=January 25, 2021 |archive-url=https://web.archive.org/web/20210125050110/https://www.bnnbloomberg.ca/largest-costco-in-canada-opens-in-st-john-s-1.1280121 |url-status=live }}

File:Panorama of the largest Costco Wholesale store, located in Salt Lake City, Utah, United States.jpg

In 2011, Costco's highest-volume store was in Seoul, South Korea.{{cite news |last=Allison |first=Melissa |date=December 17, 2011 |title=Retiring CEO of Costco takes a look back on his legacy |url=http://old.seattletimes.com/html/businesstechnology/2017040471_sinegal18.html |url-status=dead |archive-url=https://web.archive.org/web/20160726013721/http://old.seattletimes.com/html/businesstechnology/2017040471_sinegal18.html |archive-date=July 26, 2016 |access-date=August 7, 2016 |work=The Seattle Times}} In 2018, the store in Taichung, Taiwan, ranked at the top in the number of members and was second in the world in sales volume, behind South Korea's Yangjae store in Seoul. Of the 14 Costco operations in Taiwan, three – Taichung, Neihu, and Chungho – ranked in the top 10 in the world in sales volume.{{Cite web|url=https://topics.amcham.com.tw/2018/09/costcos-taiwan-success-story/|title=Costco's Taiwan Success Story|first=Don|last=Shapiro|date=September 20, 2018|access-date=February 19, 2020|archive-date=February 19, 2020|archive-url=https://web.archive.org/web/20200219073222/https://topics.amcham.com.tw/2018/09/costcos-taiwan-success-story/|url-status=live}}

{{as of|2019}}, the smallest Costco is in Juneau, Alaska, at {{cvt|76,696|sqft}}.{{Cite news |last=Hsieh |first=Jeremy |date=March 29, 2019 |title=Does Juneau really have the smallest Costco in the world? |publisher=KTOO |url=https://www.ktoo.org/2019/03/28/does-juneau-really-have-the-smallest-costco-in-the-world/ |access-date=October 31, 2022 |archive-date=October 31, 2022 |archive-url=https://web.archive.org/web/20221031213334/https://www.ktoo.org/2019/03/28/does-juneau-really-have-the-smallest-costco-in-the-world/ |url-status=live }}

=Costco Business Centers=

Costco Business Centers are warehouses similar to regular Costco warehouses, and are open to all Costco members, regardless of membership type. Their merchandise caters predominantly to enterprises, with a focus on small businesses. Business Centers do not carry most consumer items like clothing, jewelry, media, and tires, while carrying larger quantities and more options for the business products they do carry.{{cite news |last=Hansel |first=Mark |date=February 20, 2009 |title=First Costco Business Center in Las Vegas opens |url=http://www.lasvegassun.com/news/2009/feb/20/first-costco-business-center-las-vegas-opens/ |url-status=live |archive-url=https://web.archive.org/web/20110507113835/http://www.lasvegassun.com/news/2009/feb/20/first-costco-business-center-las-vegas-opens/ |archive-date=May 7, 2011 |access-date=September 29, 2010 |work=Las Vegas Sun}} More than 70% of the items that can be acquired from a Costco Business Center cannot be found in a typical Costco store. Some locations do have a food court, a gas station, or both. They have large parking spaces for trucks and are capable of delivering goods to businesses in bulk quantities, with a delivery charge of $25 for orders that are below $250.{{Cite web |last=Loeb |first=Walter |date=December 3, 2018 |title=Costco Gets Bigger, Better And More Profitable With New Business Centers |url=https://www.forbes.com/sites/walterloeb/2018/12/03/costco-member-services-get-bigger-better-and-more-profitable/ |access-date=April 25, 2021 |website=Forbes |archive-date=November 8, 2020 |archive-url=https://web.archive.org/web/20201108115252/https://www.forbes.com/sites/walterloeb/2018/12/03/costco-member-services-get-bigger-better-and-more-profitable/ |url-status=live }} Costco Business Center operating hours{{Cite web |date=May 18, 2023 |title=What Time Does Costco Open and Close? - U.S. Retail |url=https://theusretail.com/what-time-does-costco-close/ |url-status=dead |archive-url=https://web.archive.org/web/20230619061727/https://theusretail.com/what-time-does-costco-close/ |archive-date=June 19, 2023 |access-date=June 19, 2023}} are shorter than regular warehouses (usually opening at 7:00 am on Mondays to Saturdays and closed on Sundays), while discounts and coupons for Business Centers are issued separately from regular warehouses.{{Cite web |title=7 Benefits of Shopping at Costco Business Center |url=https://www.costco.com/my-life-costco-business-center-benefits.html |url-status=dead |archive-url=https://web.archive.org/web/20210216201418/https://www.costco.com/my-life-costco-business-center-benefits.html |archive-date=February 16, 2021 |access-date=March 14, 2021 |website=Costco}}{{Cite web |last=Tyler |first=Jessica |date=July 7, 2018 |title=Costco Business Center is better than regular Costco, some say |url=https://www.businessinsider.com/costco-business-center-better-than-regular-costco-some-say-2018-6 |url-status=live |archive-url=https://web.archive.org/web/20200521042118/https://www.businessinsider.com/costco-business-center-better-than-regular-costco-some-say-2018-6 |archive-date=May 21, 2020 |access-date=March 14, 2021 |website=Business Insider}}

The first Business Center was a converted Costco warehouse in Lynnwood, Washington that reopened in October 1996 following renovations; the change was made after a conventional Costco warehouse had opened in nearby Everett.{{cite news |last=Kneifel |first=Juergen |date=October 31, 2013 |title=Costco growing as a supplier for small businesses |url=https://www.heraldnet.com/business/costco-growing-as-a-supplier-for-small-businesses/ |work=The Everett Herald |accessdate=June 29, 2023 |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630005005/https://www.heraldnet.com/business/costco-growing-as-a-supplier-for-small-businesses/ |url-status=live }}{{cite news |date=October 4, 1996 |title=The new Costco of doing business |page=B1 |work=Seattle Post-Intelligencer}}

==Locations==

{{As of|2022|August}}, there are 26 Costco Business Centers in the United States.{{cite web|url = http://www.costcobusinessdelivery.com/WarehouseLocatorView?langId=-1&storeId=11301&catalogId=11701|title = Costco Business Center Locations|work = Costco Business Center|access-date = September 10, 2015|archive-date = September 14, 2015|archive-url = https://web.archive.org/web/20150914062948/http://www.costcobusinessdelivery.com/WarehouseLocatorView?langId=-1&storeId=11301&catalogId=11701|url-status = dead}}

The first Costco Business Center outside the US opened in Canada in Scarborough, Ontario, in March 2017.{{cite web|title=Costco Business Centre|url=http://www.costcobusinesscentre.ca/|publisher=Costco Wholesale Canada Ltd|access-date=March 1, 2017|archive-date=March 10, 2017|archive-url=https://web.archive.org/web/20170310043442/http://www.costcobusinesscentre.ca/|url-status=live}} In September 2020, the second Canadian Costco Business Centre opened in Saint-Hubert, Quebec, near Montreal.{{Cite web|title=St hubert business centre Saint-hubert, QC Costco Warehouse|url=https://www.costcobusinesscentre.ca/warehouse-locations/st-hubert-business-centre-saint-hubert-qc-801.html|access-date=February 16, 2021|website=www.costcobusinesscentre.ca|archive-date=January 20, 2021|archive-url=https://web.archive.org/web/20210120133637/https://www.costcobusinesscentre.ca/warehouse-locations/st-hubert-business-centre-saint-hubert-qc-801.html|url-status=live}} A third Canadian Business Centre opened in the Ottawa neighborhood of Gloucester in March 2021.{{Cite web |last=Toneguzzi |first=Mario |date=March 8, 2021 |title=Costco Opens 3rd Canadian 'Business Centre' Storefront with Several More Planned |url=https://retail-insider.com/retail-insider/2021/03/costco-opens-3rd-canadian-business-centre-storefront-with-several-more-planned/ |url-status=live |archive-url=https://web.archive.org/web/20220517155142/https://retail-insider.com/retail-insider/2021/03/costco-opens-3rd-canadian-business-centre-storefront-with-several-more-planned/ |archive-date=May 17, 2022 |access-date=July 5, 2022 |website=Retail Insider}}

Finances

class="wikitable floatright"

|+Sales by business (2023)

!Business

!Share

Food and sundries

|40.5%

Non-foods

|25.6%

Warehouse ancillary and other

|20.5%

Fresh foods

|13.5%

class="wikitable floatright"

|+Sales by region (2023){{Cite web |title=Costco Wholesale Corporation: Shareholders Board Members Managers and Company Profile |url=https://www.marketscreener.com/quote/stock/COSTCO-WHOLESALE-CORPORAT-4866/company/ |access-date=March 9, 2024 |website=MarketScreener }}

!Region

!Share

United States

|72.9%

Canada

|13.6%

Other international

|13.5%

For the fiscal year 2023, Costco reported earnings of US$6.292{{nbsp}}billion, with an annual revenue of $242.29{{nbsp}}billion.

class="wikitable float-left" style="text-align: right;"

! Year

! Revenue
in mil. US$

! Net income
in mil. US$

! Price per Share
in US$ (year end){{Cite web|title=Costco - 37 Year Stock Price History |url=https://www.macrotrends.net/stocks/charts/COST/costco/stock-price-history|access-date=February 3, 2023|website=Macrotrends|archive-date=November 11, 2020|archive-url=https://web.archive.org/web/20201111192110/https://www.macrotrends.net/stocks/charts/COST/costco/stock-price-history|url-status=live}}

! Warehouses

! Employees

! Ref(s).

2005

| 52,935

| 1,063

| 33.80

| 433

| 115,000

| style="text-align:center;" | {{Cite web| url=https://investor.costco.com/index.php/static-files/c1bfad07-2d81-4ee8-afef-161de4e305d7| title=2005 Annual Report| format=PDF| publisher=Costco Wholesale| access-date=December 11, 2019| archive-date=December 11, 2019| archive-url=https://web.archive.org/web/20191211063745/https://investor.costco.com/index.php/static-files/c1bfad07-2d81-4ee8-afef-161de4e305d7| url-status=dead}}

2006

| 60,151

| 1,103

| 36.47

| 458

| 127,000

| style="text-align:center;" | {{Cite web| url=https://investor.costco.com/index.php/static-files/f4c32bec-cd39-49fb-a983-94728df32df8| title=2006 Annual Report| format=PDF| publisher=Costco Wholesale| access-date=December 11, 2019| archive-date=December 11, 2019| archive-url=https://web.archive.org/web/20191211063708/https://investor.costco.com/index.php/static-files/f4c32bec-cd39-49fb-a983-94728df32df8| url-status=dead}}

2007

| 64,400

| 1,083

| 48.58

| 488

| 127,000

| style="text-align:center;" | {{Cite web| url=https://investor.costco.com/index.php/static-files/d530282c-54c5-4fb5-9e15-0f51144e92d5| title=2007 Annual Report| format=PDF| publisher=Costco Wholesale| access-date=December 11, 2019| archive-date=December 11, 2019| archive-url=https://web.archive.org/web/20191211063728/https://investor.costco.com/index.php/static-files/d530282c-54c5-4fb5-9e15-0f51144e92d5| url-status=dead}}

2008

| 72,483

| 1,283

| 36.93

| 512

| 137,000

| style="text-align:center;" | {{Cite web| url=https://investor.costco.com/index.php/static-files/db058833-f97a-48c3-8c69-58af07276714| title=2009 Annual Report| format=PDF| publisher=Costco Wholesale| access-date=December 11, 2019| archive-date=December 11, 2019| archive-url=https://web.archive.org/web/20191211233515/https://investor.costco.com/index.php/static-files/db058833-f97a-48c3-8c69-58af07276714| url-status=dead}}

2009

| 71,422

| 1,086

| 42.23

| 527

| 142,000

| style="text-align:center;" | {{Cite web|url=https://investor.costco.com/index.php/static-files/51c880cf-d26d-4f8a-a185-446d9d7636e2|title=2010 Annual Report|format=PDF|publisher=Costco Wholesale|access-date=December 11, 2019|archive-date=December 11, 2019|archive-url=https://web.archive.org/web/20191211063707/https://investor.costco.com/index.php/static-files/51c880cf-d26d-4f8a-a185-446d9d7636e2|url-status=dead}}

2010

| 77,946

| 1,303

| 52.22

| 540

| 147,000

| style="text-align:center;" | {{Cite web|url=https://investor.costco.com/index.php/static-files/3088c62e-db67-4a14-b4fb-873fd07ad9df|title=2011 Annual Report|format=PDF|publisher=Costco Wholesale|access-date=December 11, 2019|archive-date=December 11, 2019|archive-url=https://web.archive.org/web/20191211063707/https://investor.costco.com/index.php/static-files/3088c62e-db67-4a14-b4fb-873fd07ad9df|url-status=dead}}

2011

| 88,915

| 1,462

| 60.96

| 592

| 164,000

| style="text-align:center;" | {{Cite web|url=https://investor.costco.com/index.php/static-files/29bd6bc7-b9e9-4f17-aac0-6b5cb82c1da3|title=2012 Annual Report|format=PDF|publisher=Costco Wholesale|access-date=December 11, 2019|archive-date=December 11, 2019|archive-url=https://web.archive.org/web/20191211063730/https://investor.costco.com/index.php/static-files/29bd6bc7-b9e9-4f17-aac0-6b5cb82c1da3|url-status=dead}}

2012

| 99,137

| 1,709

| 78.29

| 608

| 174,000

| style="text-align:center;" | {{Cite web|url=https://investor.costco.com/index.php/static-files/ebf5ea9b-ac7f-4ab1-aefe-217fed24f5d3|title=2013 Annual Report|format=PDF|publisher=Costco Wholesale|access-date=December 11, 2019|archive-date=December 11, 2019|archive-url=https://web.archive.org/web/20191211063708/https://investor.costco.com/index.php/static-files/ebf5ea9b-ac7f-4ab1-aefe-217fed24f5d3|url-status=dead}}

2013

| 105,156

| 2,039

| 95.38

| 634

| 184,000

| style="text-align:center;" | {{Cite web|url=https://investor.costco.com/index.php/static-files/391cad45-fedb-49d9-bbe2-2e18cac8b8e6|title=2014 Annual Report|format=PDF|publisher=Costco Wholesale|access-date=December 11, 2019|archive-date=December 11, 2019|archive-url=https://web.archive.org/web/20191211063708/https://investor.costco.com/index.php/static-files/391cad45-fedb-49d9-bbe2-2e18cac8b8e6|url-status=dead}}

2014

| 112,640

| 2,058

| 114.90

| 663

| 195,000

| style="text-align:center;" | {{Cite web|url=https://investor.costco.com/index.php/static-files/6df4cd0a-2720-4959-923d-0a2e6c94479a|title=2015 Annual Report|format=PDF|publisher=Costco Wholesale|access-date=December 11, 2019|archive-date=December 11, 2019|archive-url=https://web.archive.org/web/20191211063708/https://investor.costco.com/index.php/static-files/6df4cd0a-2720-4959-923d-0a2e6c94479a|url-status=dead}}

2015

| 116,199

| 2,377

| 136.72

| 686

| 205,000

| style="text-align:center;" | {{Cite web|url=https://investor.costco.com/index.php/static-files/baba8321-88d1-4557-ba03-54788815b8ef|title=2016 Annual Report|format=PDF|publisher=Costco Wholesale|access-date=December 11, 2019|archive-date=December 11, 2019|archive-url=https://web.archive.org/web/20191211063743/https://investor.costco.com/index.php/static-files/baba8321-88d1-4557-ba03-54788815b8ef|url-status=dead}}

2016

| 118,719

| 2,350

| 137.10

| 715

| 218,000

| style="text-align:center;" | {{Cite web|url=https://investor.costco.com/index.php/static-files/de53c030-f51a-4703-8621-8d9c8662d48d|title=2017 Annual Report|format=PDF|publisher=Costco Wholesale|access-date=December 11, 2019|archive-date=December 11, 2019|archive-url=https://web.archive.org/web/20191211063708/https://investor.costco.com/index.php/static-files/de53c030-f51a-4703-8621-8d9c8662d48d|url-status=dead}}

2017

| 129,025

| 2,679

| 167.77

| 741

| 231,000

| style="text-align:center;" |

2018

| 141,576

| 3,134

| 185.54

| 768

| 245,000

| style="text-align:center;" | {{cite web | url=https://investor.costco.com/static-files/c812aa61-1f39-4ee8-b1bd-314b3d8b0b20 | title=2018 Annual Report | date=October 18, 2018 | access-date=November 11, 2018 | format=PDF | publisher=Costco Wholesale | archive-date=April 13, 2019 | archive-url=https://web.archive.org/web/20190413044229/https://investor.costco.com/static-files/c812aa61-1f39-4ee8-b1bd-314b3d8b0b20 | url-status=dead }}

2019

| 152,703

| 3,659

| 270.33

| 782

| 254,000

| style="text-align:center;" | {{cite web | url=https://investor.costco.com/static-files/0878117f-7f3f-4a77-a9a5-c11a2534e94d | title=2019 Annual Report | date=October 10, 2019 | access-date=December 10, 2021 | format=PDF | publisher=Costco Wholesale | archive-date=December 12, 2021 | archive-url=https://web.archive.org/web/20211212032209/https://investor.costco.com/static-files/0878117f-7f3f-4a77-a9a5-c11a2534e94d | url-status=dead }}

2020

| 166,761

| 4,002

| 358.50

| 795

| 273,000

| style="text-align:center;" | {{Cite web |date=October 7, 2020 |title=2020 Annual Report |url=https://investor.costco.com/static-files/0db73805-069a-42e4-96f9-6ea26ade0a73 |format=PDF |access-date=March 9, 2021 |website=Costco Wholesale |archive-date=October 25, 2020 |archive-url=https://web.archive.org/web/20201025055714/https://investor.costco.com/static-files/0db73805-069a-42e4-96f9-6ea26ade0a73 |url-status=dead }}

2021

| 195,929

| 5,007

| 544.25

| 815

| 288,000

| style="text-align:center;" | {{Cite web |date=October 6, 2021 |title=2021 Annual Report |url=https://s201.q4cdn.com/287523651/files/doc_financials/2021/ar/FY-2021-Annual-Report..pdf |access-date=March 19, 2022 |website=Costco Wholesale |archive-date=October 23, 2021 |archive-url=https://web.archive.org/web/20211023175320/https://investor.costco.com/static-files/726b9fb1-7933-46df-a6de-5b4eb95816c7 |url-status=live }}

2022

| 226,954

| 5,844

| 440.54

| 838

| 304,000

| style="text-align:center;" | {{Cite web |title=2022 Annual Report |url=https://s201.q4cdn.com/287523651/files/doc_financials/2022/ar/Costco-2022-Annual-Report.pdf |website=Costco Wholesale |access-date=August 16, 2024 |archive-date=March 20, 2023 |archive-url=https://web.archive.org/web/20230320062015/https://s201.q4cdn.com/287523651/files/doc_financials/2022/ar/Costco-2022-Annual-Report.pdf |url-status=live }}{{cite press release | title=Costco Wholesale Corporation Reports Fourth Quarter And Fiscal Year 2022 Operating Results | publisher=Costco Wholesale | via=GlobeNewswire | date=September 22, 2022 | url=https://www.globenewswire.com/news-release/2022/09/22/2521474/0/en/Costco-Wholesale-Corporation-Reports-Fourth-Quarter-And-Fiscal-Year-2022-Operating-Results.html | access-date=September 27, 2022 | archive-date=September 23, 2022 | archive-url=https://web.archive.org/web/20220923130812/https://www.globenewswire.com/news-release/2022/09/22/2521474/0/en/Costco-Wholesale-Corporation-Reports-Fourth-Quarter-And-Fiscal-Year-2022-Operating-Results.html | url-status=live }}

2023

| 242,290

| 6,292

| 656.27

| 871

| 316,000

| style="text-align:center;" | {{cite web | title=Costco Wholesale Corporation 2023 Annual Report (Form 10-K) | publisher=U.S. Securities and Exchange Commission | date=October 11, 2023 | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/909832/000090983223000042/cost-20230903.htm | access-date=October 12, 2023 | archive-date=October 17, 2023 | archive-url=https://web.archive.org/web/20231017184925/https://www.sec.gov/ix?doc=/Archives/edgar/data/909832/000090983223000042/cost-20230903.htm | url-status=live }}

2024

| 254,453

| 7,367

| 954.07

| 890

| 333,000

| style="text-align:center;" |

Ownership

Costco is mainly owned by institutional investors, who own over 70% of shares. The largest shareholders as of September 2024 are:{{cite web | title=Costco Wholesale Corporation (COST) Stock Major Holders | website=Yahoo Finance | date=30 September 2024 | url=https://finance.yahoo.com/quote/COST/holders/ | access-date=24 December 2024}}

Business model

File:Costco in Brampton ON-Canada 2021.jpg

Costco is a membership-only warehouse which generates a majority of its profits from membership fees and a small percentage from retail sales.{{citation needed|date=August 2024}} Customers must buy memberships to access the warehouse and make purchases. This is executed through the direct sourcing and efficient inventory management techniques.{{Cite web|last=Pratap|first=Abhijeet|date=June 27, 2020|title=Business Model of Costco|url=https://notesmatic.com/2020/06/business-model-of-costco/|access-date=March 28, 2021|website=notesmatic|archive-date=November 26, 2020|archive-url=https://web.archive.org/web/20201126101200/https://notesmatic.com/2020/06/business-model-of-costco/|url-status=live}}{{Unreliable source?|date=August 2024|reason=Blog}}

Costco divides its business into three segments: United States Operations, Canadian Operations, and Other International Operations. These three business segments are reported by revenue and operating income.{{Cite web|last1=Reiff|first1=Nathan|title=How Costco Makes Money: merchandise sales and membership fees|url=https://www.investopedia.com/how-costco-makes-money-5094774|access-date=March 28, 2021|website=Investopedia|archive-date=April 2, 2021|archive-url=https://web.archive.org/web/20210402110537/https://www.investopedia.com/how-costco-makes-money-5094774|url-status=live}} Of the three, the United States Operations was the largest, followed by Canadian Operations.

= Sales model =

One company rule states that no regular item may be marked up more than 14% over cost and no Kirkland Signature item may be marked up more than 15% over cost.{{cite magazine|last1=Gabler|first1=Neal|title=The Magic in the Warehouse|magazine=Fortune|date=December 15, 2016|pages=184–189|url=http://fortune.com/costco-wholesale-shopping/|access-date=February 5, 2017|archive-date=February 5, 2017|archive-url=https://web.archive.org/web/20170205182822/http://fortune.com/costco-wholesale-shopping/|url-status=dead}} The company runs very lean, with overhead costs at about 10% of revenue and profit margins at 2%. For example, Costco has no public relations department and buys no outside advertising. Costco's annual membership fees (US$65/year for Gold Star, US$130/year for Executive {{As of|September 2024|lc=y}}){{cite web|title=Join Costco|url=https://www.costco.com/join-costco.html|access-date=January 3, 2024|website=Costco|archive-date=January 2, 2024|archive-url=https://web.archive.org/web/20240102223356/https://www.costco.com/join-costco.html|url-status=live}} account for 80% of Costco's gross margin and 70% of its operating income.{{cite web|last=Lewis|first=Robin|date=February 16, 2016|title='Costcoholics': Costco's $113.7 Billion Addicts|url=https://www.forbes.com/sites/robinlewis/2016/02/16/costcoholics-costcos-113-7-billion-addicts/|access-date=April 18, 2017|website=Forbes|archive-date=April 19, 2017|archive-url=https://web.archive.org/web/20170419110742/https://www.forbes.com/sites/robinlewis/2016/02/16/costcoholics-costcos-113-7-billion-addicts/|url-status=live}}

Costco's sales model is to focus on limited selection over variety. Although consumer products often come in many different varieties, Costco will not carry most of those variants, but instead will carry only one or two examples of what is essentially the same product and try to sell a higher volume of units at a lower price. Thus, a typical Costco warehouse carries only 3,700 distinct products, while a typical Walmart Supercenter carries approximately 140,000 products. If Costco feels the wholesale price of any individual product is too high, they will refuse to stock the product. For example, in November 2009, Costco announced that it would stop selling Coca-Cola products because the soft-drink maker refused to lower its wholesale prices.{{cite news|last=Fredrix|first=Emily|url=http://www.thestreet.com/story/10627534/1/costco-nixes-coke-products-over-pricing-dispute.html|title=Costco nixes Coke products over pricing dispute|work=The Street|agency=Associated Press|date=November 16, 2009|access-date=November 27, 2009|archive-url=https://web.archive.org/web/20120719122548/http://www.thestreet.com/story/10627534/1/costco-nixes-coke-products-over-pricing-dispute.html|archive-date=July 19, 2012|url-status=dead}} Costco resumed selling Coca-Cola products the following month.{{cite news |author=Collier |first=Joe Guy |date=December 10, 2009 |title=Coke returns to Costco next week |url=http://ajc.com/business/coke-returns-to-costco-236727.html |url-status=dead |archive-url=https://web.archive.org/web/20091216131039/http://www.ajc.com/business/coke-returns-to-costco-236727.html |archive-date=December 16, 2009 |access-date=December 24, 2009 |newspaper=The Atlanta Journal-Constitution}}{{cite news |author=Allison |first=Melissa |date=December 10, 2009 |title=Costco brings back Coke next week, reports 1 percent boost in first-quarter profit |url=http://seattletimes.nwsource.com/html/seattleshopping/2010472534_coke_coming_back_to_costco_nex.html |url-status=dead |archive-url=https://web.archive.org/web/20091213120813/http://seattletimes.nwsource.com/html/seattleshopping/2010472534_coke_coming_back_to_costco_nex.html |archive-date=December 13, 2009 |access-date=December 24, 2009 |newspaper=The Seattle Times}} Finally, Costco insists that manufacturers must package their products in large sizes and properly arrange them on pallets suitable for deployment to its warehouses.{{cite news |last1=Wynn |first1=Kirsty |title=Costco in NZ: Kiwi haircare brand Everblue wins lucrative contract after a year in business |url=https://www.nzherald.co.nz/nz/costco-in-nz-kiwi-haircare-brand-everblue-wins-lucrative-contract-after-a-year-in-business/WRKQK5DCF2V3URX6LUFMOU2UXU/ |work=The New Zealand Herald |date=September 22, 2022}} However, unlike most chain stores, Costco does not sell shelf space to manufacturers.

Due to its massive size and its extremely selective approach to buying products, Costco has become a powerful "arbiter" between manufacturers and consumers. From the perspective of small manufacturers, the reward for jumping through all these hoops to sell products to Costco is the possibility of obtaining international distribution through the company's warehouses in other countries.{{cite news |last1=Shaw |first1=Aimee |title=The Costco effect: Retail giant catapults Cookie Time sales |url=https://www.stuff.co.nz/business/130339777/the-costco-effect-retail-giant-catapults-cookie-time-sales |work=Stuff |date=October 31, 2022}} If a manufacturer's product is popular at warehouses in its home country, Costco may look into whether members in other countries might also be interested in that product.

Although the company engages in visible efforts to reduce costs, the stores themselves are expensive. In 2013, Costco spent approximately $80{{nbsp}}million on each of the new stores it opened.{{Cite web|last=Kalogeropoulos|first=Demitrios|date=October 1, 2014|title=How Costco Is Investing $2 Billion in Its Future -|url=https://www.fool.com/investing/general/2014/10/01/how-costco-is-investing-2-billion-in-its-future.aspx|access-date=May 1, 2019|website=The Motley Fool|archive-date=May 1, 2019|archive-url=https://web.archive.org/web/20190501141308/https://www.fool.com/investing/general/2014/10/01/how-costco-is-investing-2-billion-in-its-future.aspx|url-status=live}}

File:COSTCO gas station.jpg]]

The cost is partly driven by the cost of real estate, as each new store requires enough space to support a building of approximately {{Convert|150000|ft2|m2|abbr=}} in size, a large parking lot, and often a gas station.

Lighting costs are reduced on sunny days because most Costco locations have several skylights. During the day, electronic light meters measure how much light is coming in the skylights and turn off an appropriate percentage of the interior lights. During an average sunny day, it is normal for the center section of the warehouse not to have interior lights in use.{{cite web|url=http://www.pge.com/includes/docs/pdfs/shared/edusafety/training/pec/daylight/1487Coco_repaginated.pdf|title=A Cart Full of Energy Savings|publisher=PGE.com|access-date=February 20, 2012|archive-date=March 7, 2012|archive-url=https://web.archive.org/web/20120307172509/http://www.pge.com/includes/docs/pdfs/shared/edusafety/training/pec/daylight/1487Coco_repaginated.pdf|url-status=live}}

Rotisserie chickens are a major driver of customer traffic and sales for Costco, which has sold them since 1994 amid the then-rising popularity of Boston Market.{{Cite web|url=https://www.meatpoultry.com/articles/20188-costco-poultry-complex-to-have-retail-ripple-effect|title=Costco poultry complex to have retail ripple effect|last=Shaffer|first=Erica|date=September 21, 2018|website=MEAT+POULTRY|access-date=September 25, 2018|archive-date=July 28, 2020|archive-url=https://web.archive.org/web/20200728225116/https://www.meatpoultry.com/articles/20188-costco-poultry-complex-to-have-retail-ripple-effect|url-status=live}}{{Cite podcast |url=https://www.wsj.com/podcasts/the-journal/are-rotisserie-chickens-inflation-proof/0429fb64-b744-45ed-a5cf-01838afe573b |title=Are Rotisserie Chickens 'Inflation-Proof'? |work=The Journal. |publisher=Gimlet Media and The Wall Street Journal |last=Linebaugh |first=Kate |date=October 10, 2022 |access-date=July 2, 2023 |last2=Gasparro |first2=Annie |archive-date=July 3, 2023 |archive-url=https://web.archive.org/web/20230703063314/https://www.wsj.com/podcasts/the-journal/are-rotisserie-chickens-inflation-proof/0429fb64-b744-45ed-a5cf-01838afe573b |url-status=live }} In response to the annual growth of per-capita chicken consumption in the United States,{{Cite web|url=https://www.agmrc.org/media/cms/U_D2F5216454198.pdf|title=U.S. Meat and Poultry Production & Consumption: An Overview|date=September 2016|website=North American Meat Institute|access-date=September 25, 2018|archive-date=April 4, 2020|archive-url=https://web.archive.org/web/20200404191126/https://www.agmrc.org/media/cms/U_D2F5216454198.pdf|url-status=dead}} Costco opened a factory in Nebraska in 2019 that implemented vertical integration across all aspects of poultry production in a bid to keep their pricing intact while maintaining consistent quality control of them.{{Cite news|url=https://www.fooddive.com/news/costcos-in-house-poultry-production-signals-a-new-supply-chain-approach/533017/|title=Costco's in-house poultry production signals a new supply chain approach|last=Devenyns|first=Jessi|work=Food Dive|publisher=Industry Dive|date=September 24, 2018|access-date=September 25, 2018|archive-date=September 25, 2018|archive-url=https://web.archive.org/web/20180925180726/https://www.fooddive.com/news/costcos-in-house-poultry-production-signals-a-new-supply-chain-approach/533017/|url-status=live}}{{cite news | last=Meyersohn | first=Nathaniel | title=It's only $4.99. But Costco's rotisserie chicken comes at a huge price | website=CNN | date=October 11, 2019 | url=https://www.cnn.com/2019/10/11/business/costco-5-dollar-chicken/index.html | access-date=October 13, 2019 | archive-date=October 12, 2019 | archive-url=https://web.archive.org/web/20191012233136/https://www.cnn.com/2019/10/11/business/costco-5-dollar-chicken/index.html | url-status=live }} In some international markets, Costco also offers sushi that is made in-house; the Issaquah warehouse became the first US store to have in-house sushi in 2023.{{cite news |last=Vinh |first=Tan |date=June 15, 2023 |title=Issaquah's Costco offering made-in-store sushi, a first in the U.S. Is it good? |url=https://www.seattletimes.com/life/food-drink/issaquahs-costco-is-the-first-in-the-u-s-to-offer-in-store-sushi-is-it-good/ |work=The Seattle Times |accessdate=July 1, 2023 |archive-date=July 1, 2023 |archive-url=https://web.archive.org/web/20230701162616/https://www.seattletimes.com/life/food-drink/issaquahs-costco-is-the-first-in-the-u-s-to-offer-in-store-sushi-is-it-good/ |url-status=live }}

Costco is known for its "exit greeters", who briefly compare receipts against shopping cart contents as customers exit. They are trained to quickly count cart contents and serve as a form of customer service to verify that customers were charged correctly, have redeemed any voucher-based items (e.g., tickets), and have not missed items placed in their cart's lower racks. Costco has used exit greeters since its first store in 1983.{{Cite web |last1=Graff |first1=Amy |title=The reason Costco checks receipts at the door isn't about shoplifting |work=SFGATE |date=December 11, 2021 |url=https://www.sfgate.com/food/article/The-reason-Costco-checks-receipts-at-the-door-16688872.php |access-date=December 23, 2021 |archive-date=December 23, 2021 |archive-url=https://web.archive.org/web/20211223054736/https://www.sfgate.com/food/article/The-reason-Costco-checks-receipts-at-the-door-16688872.php |url-status=live }}

=Management model=

Costco is known for a strong corporate culture which encourages and rewards loyalty and promotes from within.{{cite news |last1=Stearns |first1=John |title=Ron Vachris: Costco's New CEO and Culture Keeper |url=https://www.southsoundbiz.com/profiles/ron-vachris-costco-interview/article_7c03e854-37d9-11ef-b403-1fab84c884aa.html |work=South Sound Business |date=July 2, 2024}} As of 2024, Costco claims to have a retention rate over 90% for new employees who make it to one year. Many of its senior executives started out as front-line employees in its warehouses and spent many years rising through the ranks to reach their current positions. For example, Ron Vachris started in 1982 as a forklift driver at a Price Club in Arizona and became only the third chief executive officer in Costco's history in 2024. Since 95% of the company's workforce is in its warehouses, and so many of its executives started their careers there, the company's culture is tightly focused on supporting the warehouse experience.

At Costco headquarters in Issaquah, all 7,000 headquarters employees sit in cubicles, including the chief executive officer. However, the CEO does get to have a slightly larger cubicle. All Costco executives are expected to get out of the office regularly and spend the majority of their time in the field visiting warehouses and solving problems. The CEO attempts to visit as many warehouses as possible around the world in a cycle every 18 to 24 months, while executives responsible for smaller geographical areas are expected to visit all the warehouses under their supervision much more often.

=Online shopping=

Costco primarily focuses on getting members to come in to a warehouse for purchases, instead of ordering products online.{{Cite web |last=Stankiewicz |first=Kevin |date=December 14, 2020 |title=Costco CEO says company is doubling down on brick-and-mortar, even as it invests in e-commerce |url=https://www.cnbc.com/2020/12/14/costco-ceo-says-brick-and-mortar-remains-key-even-as-e-commerce-grows.html |access-date=April 25, 2021 |website=CNBC |archive-date=April 25, 2021 |archive-url=https://web.archive.org/web/20210425220238/https://www.cnbc.com/2020/12/14/costco-ceo-says-brick-and-mortar-remains-key-even-as-e-commerce-grows.html |url-status=live }} Due to the COVID-19 pandemic, Costco's online sales increased dramatically, with more online sales growth in 2020 than the previous five years combined.{{Cite web |last=Ali |first=Fareeha |date=September 20, 2020 |title=Costco's online sales jump 50% in fiscal year 2020 |url=https://www.digitalcommerce360.com/2020/09/28/costcos-online-sales-jump-50-in-fiscal-year-2020/ |url-status=live |archive-url=https://web.archive.org/web/20210425220238/https://www.digitalcommerce360.com/2020/09/28/costcos-online-sales-jump-50-in-fiscal-year-2020/ |archive-date=April 25, 2021 |access-date=April 25, 2021 |website=Digital Commerce 360}}

In November 1998, the company launched Costco Online, its online shopping site.{{cite news |last1=Lane |first1=Polly |last2=Moriwaki |first2=Lee |title=Costco to take $118 million charge for accounting change |work=The Seattle Times |date=November 5, 1998 |page=D5}} The site expanded to incorporate B2B e-commerce on April 17, 2001.{{cite news |last1=Mulady |first1=Kathy |title=Costco expands B2B Web site |url=https://www.seattlepi.com/business/article/Costco-expands-B2B-Web-site-1052367.php |access-date=July 2, 2023 |work=Seattle Post-Intelligencer |date=April 17, 2001 |page=E1 }}{{cite press release |url=https://investor.costco.com/news/news-details/2001/Costco-Wholesale-Corporation-Launches-B2B-E-commerce-Site-for-Faster-and-Easier-Business-Shopping-04-17-2001/default.aspx |title=Costco Wholesale Corporation Launches B2B E-commerce Site for Faster and Easier Business Shopping |location=Issaquah, Washington |publisher=Costco Wholesale |date=April 17, 2001 |access-date=July 2, 2023 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702214040/https://investor.costco.com/news/news-details/2001/Costco-Wholesale-Corporation-Launches-B2B-E-commerce-Site-for-Faster-and-Easier-Business-Shopping-04-17-2001/default.aspx |url-status=live }}

Instacart offers Costco delivery in a select number of states, including Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Massachusetts, Maryland, Minnesota, Missouri, North Carolina, New Jersey, New York, Oregon, Tennessee, Texas, Virginia, Washington, and the District of Columbia.{{cite web|title=Costco Grocery Delivery - Instacart|url=https://www.instacart.com/costco|access-date=April 10, 2017|archive-date=April 10, 2017|archive-url=https://web.archive.org/web/20170410214007/https://www.instacart.com/costco|url-status=live}}

Similarly, in March 2017, Costco initiated a partnership with Shipt, an online grocery delivery service. Unlike Instacart, Shipt charges its own membership fee, $99 a year or $14 a month, in exchange for free delivery on orders over $35. {{As of|2018|November}}, Shipt offers Costco delivery in select Florida markets.{{cite web|last1=Burrows|first1=Dan|title=Costco Expands Online Grocery Delivery With Shipt|url=http://www.kiplinger.com/article/spending/T063-C011-S001-costco-expands-online-grocery-delivery-with-shipt.html|website=Kiplinger|date=March 21, 2017 |access-date=April 10, 2017|archive-date=April 10, 2017|archive-url=https://web.archive.org/web/20170410214313/http://www.kiplinger.com/article/spending/T063-C011-S001-costco-expands-online-grocery-delivery-with-shipt.html|url-status=live}}

In October 2017, Costco launched same-day and two-day grocery delivery options for members.{{Cite magazine |last=Shen |first=Lucinda |date=October 6, 2017 |title=Costco's Newest Move to Beat Amazon and Whole Foods? Delivery |url=https://fortune.com/2017/10/06/costco-amazon-whole-foods-grocery-delivery/ |url-status=live |archive-url=https://web.archive.org/web/20171006173227/http://fortune.com/2017/10/06/costco-amazon-whole-foods-grocery-delivery/ |archive-date=October 6, 2017 |access-date=October 6, 2017 |magazine=Fortune}}

In June 2023, Costco in Iceland opened up for click-and-collect alcohol sales, having previously only been open to businesses.{{Cite web |date=June 13, 2023 |title=Einstaklingar geta nú keypt áfengi hjá Costco |url=https://www.mbl.is/vidskipti/frettir/2023/06/13/einstaklingar_geta_nu_keypt_afengi_hja_costco/ |url-status=live |archive-url=https://web.archive.org/web/20230615230348/https://www.mbl.is/vidskipti/frettir/2023/06/13/einstaklingar_geta_nu_keypt_afengi_hja_costco/ |archive-date=June 15, 2023 |access-date=June 15, 2023 |website=www.mbl.is |language=is}}

Products

Costco frequently rotates its inventory, often stocking items temporarily or seasonally.{{Cite web|first1=Meghan|last1=De Maria|title=16 Things Costco Won't Be Bringing Back|url=https://www.eatthis.com/costco-discontinued-items/|access-date=July 24, 2020|website=Eat This Not That|archive-date=July 24, 2020|archive-url=https://web.archive.org/web/20200724180318/https://www.eatthis.com/costco-discontinued-items/|url-status=live}} In a 2017 speech in San Diego, Sinegal explained that "we have created a treasure-hunt atmosphere". Costco's unique business model creates a "sense of urgency" in shoppers to impulsively buy a good deal as soon as they spot one, since it will probably not be there the next time they come back to a Costco warehouse.

Over the years, Costco has significantly expanded its range of products.{{Cite web |title=Costco About Us |url=https://www.costco.com/about.html |url-status=live |archive-url=https://web.archive.org/web/20211231202853/https://www.costco.com/about.html |archive-date=December 31, 2021 |access-date=April 25, 2021 |website=Costco}} While initially focusing on bulk, boxed items easily displayed in store by removing the stretch wrap from a pallet, Costco's offerings now{{when|date=July 2019}} include a diverse array of items of all shapes and sizes.{{Citation needed|date=July 2019}} These range from art, books, caskets,{{cite web|title=Caskets|url=https://www.costco.com/funeral-caskets.html|work=Costco|access-date=January 14, 2023|archive-date=January 14, 2023|archive-url=https://web.archive.org/web/20230114204451/https://www.costco.com/funeral-caskets.html|url-status=live}}{{Cite web |last=Etzel |first=Natasha |date=July 6, 2023 |title=Costco Members Are Saving Hundreds of Dollars on This Unexpected Find |url=https://www.fool.com/the-ascent/personal-finance/articles/costco-members-are-saving-hundreds-of-dollars-on-this-unexpected-find/ |access-date=March 19, 2024 |website=www.fool.com |archive-date=March 19, 2024 |archive-url=https://web.archive.org/web/20240319023938/https://www.fool.com/the-ascent/personal-finance/articles/costco-members-are-saving-hundreds-of-dollars-on-this-unexpected-find/ |url-status=live }} and clothing, to computer software, fine wine, furniture, home appliances, electronics, hot tubs, jewelry, and various perishable goods like dairy, baked items, flowers, produce, meat, and seafood. Other items such as solar panels, tires, and vacuum cleaners have also found their way into Costco's product lineup.{{Citation needed|date=July 2019}}

Beyond products, many Costco warehouses feature additional services including gas stations, pharmacies,{{Cite web |date=March 29, 2023 |title=7 Things To Know About Costco Pharmacy |url=https://clark.com/shopping-retail/costco-pharmacy/#:~:text=The%20pharmacy%20department%20at%20the,refill%2C%20pet%20medications%20and%20more. |url-status=live |archive-url=https://web.archive.org/web/20230530222213/https://clark.com/shopping-retail/costco-pharmacy/#:~:text=The%20pharmacy%20department%20at%20the,refill%2C%20pet%20medications%20and%20more. |archive-date=May 30, 2023 |access-date=May 30, 2023 |website=Clark.com}} hearing aid centers, optometry and eyewear departments, and tire installation garages.{{Cite web |last=McCaffery |first=Jen |date=October 14, 2022 |title=Here's Why You Should Buy Your Tires from Costco |url=https://www.rd.com/article/buy-tires-from-costco/ |url-status=live |archive-url=https://web.archive.org/web/20230530222213/https://www.rd.com/article/buy-tires-from-costco/ |archive-date=May 30, 2023 |access-date=May 30, 2023 |website=Reader's Digest}}

= Alcohol =

Alcohol sales at Costco vary by location due to differing regulations. In some places, separate liquor stores exist to adhere to licensing laws, whereas in others, alcohol is available within the main warehouse alongside general merchandise. In certain states, like Texas, liquor sales must be conducted by a separate business entity with its own staff.Texas Alcoholic Beverage Code section 22.14

Costco's desire to alter its alcohol sales structure in its home state faced a setback in 2006 when it lost its court battle against Washington State's requirement for retailers to buy wine through the state-controlled system.{{Cite web |last=Arnold |first=Eric |date=February 4, 2008 |title=Costco Loses Long Fight to Reform Wine Distribution Laws |url=https://www.winespectator.com/articles/costco-loses-long-fight-to-reform-wine-distribution-laws-3995 |url-status=live |archive-url=https://web.archive.org/web/20200217195827/https://www.winespectator.com/articles/costco-loses-long-fight-to-reform-wine-distribution-laws-3995 |archive-date=February 17, 2020 |access-date=February 17, 2020 |website=Wine Spectator}} The company then changed strategies. Costco spent over $22 million to support Initiative 1183, versus $11.75 million from opponents, "the most expensive initiative fight" in the history of Washington State.{{cite news |last1=Allison |first1=Melissa |title=Costco's $22M for liquor initiative sets record |url=https://www.seattletimes.com/seattle-news/costcos-22m-for-liquor-initiative-sets-record/ |access-date=November 16, 2024 |work=The Seattle Times |date=October 19, 2011}} In the November 8, 2011 election, Initiative 1183 passed with 60 percent of the vote and led to the demolition of the Washington state government's monopoly on the distribution of liquor and spirits for retail sale through state-owned and state-licensed liquor stores.{{cite news |last1=Allison |first1=Melissa |title=Liquor board, retailers gear up to implement I-1183 |url=https://www.seattletimes.com/business/liquor-board-retailers-gear-up-to-implement-i-1183/ |access-date=November 16, 2024 |work=The Seattle Times |date=November 9, 2011}}

The Costco warehouses with the largest wine departments have a "wine steward" who roams around that department and advises Costco customers on what wines are best for their needs.{{cite news |last1=Lander |first1=Jess |title=This Bay Area Costco legend is drawing customers to the Napa store |url=https://www.sfchronicle.com/food/wine/article/napa-costco-wine-19846708.php |work=San Francisco Chronicle |date=October 18, 2024 |url-access=subscription}} As of October 2024, Costco employed about 30 wine stewards at its US warehouses.

In the 21st century, Costco has made its store openings into special events by featuring special selections of whiskey, wine, and other alcoholic beverages which are extremely rare and not normally sold at its warehouses, or extremely cheap, or both.{{cite news |last1=Huffman |first1=Jennifer |title=Napa Costco shoppers line up to be No. 1 on opening day |url=https://napavalleyregister.com/news/local/napa-costco-opening-whiskey-riversound/article_eeda17ee-8c08-11ef-96b0-47f238297509.html |work=Napa Valley Register |date=October 16, 2024}}{{cite news |last1=Huffman |first1=Jennifer |title=Opening day: Napa Costco welcomes its first customers |url=https://napavalleyregister.com/news/local/costco-napa-grand-opening-riversound-retail/article_e29f4c32-8ca4-11ef-9cc2-67d5cdc90ffe.html |work=Napa Valley Register |date=October 18, 2024}} For the October 2024 opening of Costco's first warehouse in Napa, California, die-hard whiskey fans began camping out on the sidewalk six days in advance.

International operations must navigate regional laws as well.{{Cite web |title=About Costco |url=https://www.costco.com.au/aboutcostco |url-status=live |archive-url=https://web.archive.org/web/20200724190329/https://www.costco.com.au/aboutcostco |archive-date=July 24, 2020 |access-date=July 24, 2020 |website=Costco Australia}} For example, Costco's first store in Victoria, Australia, operates under the country's relatively liberal alcohol licensing laws, allowing sales directly off the shelf as is common in most European countries.{{Citation needed|date=July 2019}} However, in New Zealand, Costco's sole warehouse in West Auckland is restricted from selling alcohol due to a local monopoly on liquor retail.{{Cite web |last=Stock |first=Rob |date=September 15, 2022 |title=Why Costco won't be selling booze from its Auckland mega-store |url=https://www.stuff.co.nz/business/129885223/why-costco-wont-be-selling-booze-from-its-auckland-megastore |url-status=live |archive-url=https://web.archive.org/web/20220926205544/https://www.stuff.co.nz/business/129885223/why-costco-wont-be-selling-booze-from-its-auckland-megastore |archive-date=September 26, 2022 |access-date=September 28, 2022 |website=Stuff }}

=Books=

For much of its history, Costco has been a major American bookseller in its own right, in an era in which e-commerce giant Amazon and big-box bookstore chain Barnes & Noble were wiping out traditional bookstores. Costco became one of the few American brick-and-mortar retail outlets where many shoppers who rarely visited bookstores could easily detour to the book section to browse hard copy books, discover books they might not have otherwise noticed, and buy them right away.{{cite news |last1=Harris |first1=Elizabeth A. |last2=Alter |first2=Alexandra |title=Costco Plans to Stop Selling Books Year-Round |url=https://www.nytimes.com/2024/06/05/books/costco-books.html |work=The New York Times |date=June 5, 2024 |url-access=subscription}}{{cite news |last1=Schulz |first1=Bailey |title=Costco is switching up how it sells books. What it means for shoppers |url=https://www.usatoday.com/story/money/shopping/2024/06/07/costco-to-stop-selling-books/74018360007/ |work=USA Today |date=June 7, 2024}} When Costco chose to buy any particular book, it usually acquired tens of thousands of copies, which was important to a publishing industry where a print run of 50,000 copies is a big deal.{{cite news |last1=Harris |first1=Elizabeth A. |title=How to Sell Books in 2020: Put Them Near the Toilet Paper |url=https://www.nytimes.com/2020/07/22/books/books-coronavirus-retail-walmart-target-costco.html |work=The New York Times |date=July 22, 2020 |url-access=subscription}}

In the 2020s, Costco management reportedly began to consider no longer carrying books as a year-round product category because they are extremely labor-intensive products. New books must be unpacked and laid out by hand on tables when released each Tuesday, while books which failed to sell must be manually collected and returned to their publishers.

In 2022, Costco quietly closed the year-round book sections in its Alaska and Hawaii warehouses. In June 2024, several publishing executives warned that in January 2025, Costco was planning to do the same across its 600 warehouses in the contiguous United States. In other words, books would become just one more rotating inventory item for eight months each year, and would reappear as a full section only during the holiday shopping season in the last four months of each year. This was deeply alarming to a publishing industry already facing stagnating book sales. In November 2024, Costco agreed to keep year-round book sections for the time being in 100 of its 600 mainland US warehouses.{{cite news |last1=Milliot |first1=Jim |title=Costco to Keep Book Sections in 100 Outlets Year-Round |url=https://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/96591-costco-to-keep-book-sections-in-100-outlets-year-round.html |work=Publishers Weekly |date=November 25, 2024}}

=Gold bars=

Costco began selling one-ounce, 24-karat gold bars in October 2023.{{cite news |last1=Carballo |first1=Rebecca |title=Customers Flock to Costco to Buy Gold Bars |url=https://www.nytimes.com/2024/04/11/business/costco-gold-bars.html#:~:text=Costco%20started%20selling%20gold%20bars%20in%20October.&text=The%20bars%20can%20be%20purchased,for%20around%20%242%2C000%20in%20December. |access-date=April 23, 2024 |work=New York Times |date=April 11, 2024 |archive-date=April 23, 2024 |archive-url=https://web.archive.org/web/20240423164446/https://www.nytimes.com/2024/04/11/business/costco-gold-bars.html#:~:text=Costco%20started%20selling%20gold%20bars%20in%20October.&text=The%20bars%20can%20be%20purchased,for%20around%20%242%2C000%20in%20December. |url-status=live }}{{Cite web |date=2023-11-10 |title=Gold is near an all-time high. Here's how to sell it without getting scammed. - CBS News |url=https://www.cbsnews.com/news/gold-prices-how-to-sell-your-gold/ |access-date=2025-03-24 |website=www.cbsnews.com |language=en-US}} While typically selling for about 2% above the spot price, Costco offers 2% cash back for executive members and another 2% for users of certain credit cards. Thus it is seen as a low-profit venture for Costco{{cite news |last1=Cox |first1=Jeff |title=Costco selling as much as $200 million in gold bars monthly, Wells Fargo estimates |url=https://www.cnbc.com/2024/04/09/costco-selling-up-to-200-million-in-gold-bars-a-month-wells-fargo-estimates.html |access-date=April 23, 2024 |publisher=CNBC |date=April 9, 2024 |archive-date=April 23, 2024 |archive-url=https://web.archive.org/web/20240423014441/https://www.cnbc.com/2024/04/09/costco-selling-up-to-200-million-in-gold-bars-a-month-wells-fargo-estimates.html |url-status=live }} and a loss leader for increasing store memberships.{{cite web |title=The Golden Strategy: How Costco's Sale of Gold Bars Lures in Customers and Bolsters Memberships |url=https://www.firstgoldgroup.com/the-golden-strategy-how-costcos-sale-of-gold-bars-lures-in-customers-and-bolsters-memberships/ |website=First Gold Group |date=April 21, 2024 |access-date=April 23, 2024 |archive-date=April 23, 2024 |archive-url=https://web.archive.org/web/20240423164445/https://www.firstgoldgroup.com/the-golden-strategy-how-costcos-sale-of-gold-bars-lures-in-customers-and-bolsters-memberships/ |url-status=live }}

=Kirkland Signature=

File:Kirkland Signature logo.svg

File:Kirkland Signature Drinking Water 1.5L 20050508.jpg

File:Kirkland Mixed Nuts.jpg

Kirkland Signature is Costco's private label brand, featured on a wide array of products sold across Costco's warehouses and its website. Launched in 1995, the brand takes its name from the original location of Costco's corporate headquarters in Kirkland, Washington.{{cite web | last=Meyersohn | first=Nathaniel | title=Why every Costco product is called 'Kirkland Signature' | website=CNN | date=February 5, 2022 | url=https://www.cnn.com/2022/02/05/business/costco-kirkland-signature/index.html | access-date=August 24, 2022 | archive-date=August 13, 2022 | archive-url=https://web.archive.org/web/20220813063338/https://www.cnn.com/2022/02/05/business/costco-kirkland-signature/index.html | url-status=live }}{{cite web| url=http://www.kirklandnow.com/Page.aspx?nid=88|title=Business Spotlight: Costco Wholesale|access-date=October 26, 2006|archive-url=https://web.archive.org/web/20081226101747/http://www.kirklandnow.com/Page.aspx?nid=88 |archive-date=December 26, 2008 }} It accounts for nearly one-third of the company's sales and outpaces the growth of Costco's overall sales.{{cite news |last1=Green |first1=Dennis |title=Shoppers love Costco's Kirkland Signature brand, and it's turned into the retailer's biggest asset |url=https://www.businessinsider.com/costco-kirkland-signature-brand-drives-success-2019-1 |access-date=February 25, 2019 |work=Business Insider |date=January 11, 2019 |archive-date=February 26, 2019 |archive-url=https://web.archive.org/web/20190226045947/https://www.businessinsider.com/costco-kirkland-signature-brand-drives-success-2019-1 |url-status=live }}

The aim of the Kirkland Signature brand was to offer products with brand name quality at discounted prices.{{cite news |last=Broberg |first=Brad |date=April 1, 2007 |title=Costco buying power makes dent in private-label wine market |url=http://www.bizjournals.com/seattle/stories/2007/04/02/focus5.html |url-status=live |access-date=March 30, 2007 |archive-url=https://web.archive.org/web/20080117153940/http://www.bizjournals.com/seattle/stories/2007/04/02/focus5.html |archive-date=January 17, 2008}} Recognizing the typical consumer skepticism common with private labels, Costco has adopted a strategy of co-branding certain items with well-known manufacturers to bolster consumer trust.{{cite news |last=Duff |first=Mike |date=December 19, 2005 |title=A private label success story |work=DSN Retailing Today |url=http://www.findarticles.com/p/articles/mi_m0FNP/is_23_44/ai_n15969670 |url-status=dead |access-date=November 27, 2009 |archive-url=https://web.archive.org/web/20070221081532/http://www.findarticles.com/p/articles/mi_m0FNP/is_23_44/ai_n15969670 |archive-date=February 21, 2007}} Notable co-branded products include those from Chinet, Jelly Belly, Keurig Green Mountain, Ocean Spray, Stearns & Foster, and Starbucks.{{Cite web |last=Louis |first=Serah |date=May 9, 2022 |title=These are the big brands hidden behind Costco's Kirkland label |url=https://moneywise.com/life/lifestyle/the-big-brands-behind-costcos-kirkland-signature-items |url-status=live |archive-url=https://web.archive.org/web/20220606172400/https://moneywise.com/life/lifestyle/the-big-brands-behind-costcos-kirkland-signature-items |archive-date=June 6, 2022 |access-date=September 4, 2022 |website=MoneyWise}} Additionally, while some Kirkland Signature products maintain a generic label, they are produced in partnership with recognized companies such as Duracell and Niagara Bottling. The brand often uses simple, minimalist packaging, reflecting its focus on offering high-quality products at affordable prices.{{Cite web |date=March 14, 2024 |title=Desde café hasta vitamina E: Una mirada a la variedad de productos Kirkland Signature |url=https://dsn.pe/desde-cafe-hasta-vitamina-e-una-mirada-a-la-variedad-de-productos-kirkland-signature/ |access-date=March 15, 2024 |archive-date=March 15, 2024 |archive-url=https://web.archive.org/web/20240315151014/https://dsn.pe/desde-cafe-hasta-vitamina-e-una-mirada-a-la-variedad-de-productos-kirkland-signature/ |url-status=live }}

Publications

=''Costco Connection''=

Costco Connection is a magazine sent free to the Costco executive members; it can also be accessed online by anyone, free of charge.{{cite web|url=http://www.costco.com/costco-connection-online-edition.html|publisher=Costco|title=The Costco Connection Online Edition|access-date=December 6, 2015|archive-date=December 7, 2015|archive-url=https://web.archive.org/web/20151207091730/http://www.costco.com/costco-connection-online-edition.html|url-status=live}} {{as of|2024}}, the magazine is distributed to 15.4 million households and has 300,000 copies at warehouses. It has the third-highest magazine circulation in the United States, behind two AARP magazines.{{cite news |last=Kahn |first=Mattie |date=October 19, 2024 |title=Costco Has a Magazine and It's Thriving |url=https://www.nytimes.com/2024/10/19/style/costco-connection-magazine.html |work=The New York Times |url-access=subscription |accessdate=October 20, 2024}}

The magazine was established in 1987 as a newsprint publication and converted to a magazine in 1997.{{cite news |author=Meyersohn |first=Nathaniel |date=February 24, 2020 |title=The Costco Connection is America's fourth biggest magazine |url=https://www.cnn.com/2020/02/24/business/costco-connection-magazine-retail/index.html |url-status=live |archive-url=https://web.archive.org/web/20200531015337/https://www.cnn.com/2020/02/24/business/costco-connection-magazine-retail/index.html |archive-date=May 31, 2020 |access-date=May 27, 2020 |publisher=CNN Business}} It features articles which regularly tie into the corporation along with business, celebrity features, cooking, entertaining, health, home improvement, and social articles, as well as coupons and ads. MediaPost reports: "While about 90% of the magazine's advertising is co-op, increasingly national advertisers such as Procter & Gamble are buying space, notes Roeglin -- presumably because of the pub's gargantuan reach and the data it has on its subscribers (whose average household income is $156,000 a year). 'We see about 56% of our subscribers a month buy something at one of our stores based on something they've read in the magazine,' says Roeglin."{{cite web|work=MediaPost|title=Costco's Surprisingly Large-Circulation Magazine|author=Robins, J. Max|date=March 6, 2015|url=http://www.mediapost.com/publications/article/245123/costcos-surprisingly-large-circulation-magazine.html|access-date=December 6, 2015|archive-date=December 18, 2015|archive-url=https://web.archive.org/web/20151218131818/http://www.mediapost.com/publications/article/245123/costcos-surprisingly-large-circulation-magazine.html|url-status=live}}

Services

=Concierge service=

Costco offers a free "concierge" service to members who purchase electronics, to help answer questions regarding setup and use and avoid potential returns due to not understanding how to use the products.{{cite web|url=http://www.costco.com/service/featurepageleftnav.aspx?productno=11204333 |title=Costco Wholesale Return Policy |publisher=Costco |access-date=February 20, 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120219224556/http://www.costco.com/Service/FeaturePageLeftNav.aspx?ProductNo=11204333 |archive-date=February 19, 2012 }}

=Costco Auto and Home Insurance=

Costco has an agreement with CONNECT, powered by American Family Insurance, for auto insurance, home insurance and umbrella insurance.{{Cite web|date=January 22, 2021|title=Costco Car Insurance Review|url=https://www.investopedia.com/costco-car-insurance-review-5076805|website=www.investopedia.com|access-date=April 23, 2021|archive-date=April 23, 2021|archive-url=https://web.archive.org/web/20210423154143/https://www.investopedia.com/costco-car-insurance-review-5076805|url-status=live}}

=Costco Optical=

Costco Optical ranks as the fifth-largest optical company in the US, {{as of|2015|lc=y}}.{{cite web | url=http://www.visionmonday.com/vm-reports/top-50-retailers/article/snapshots-of-opticals-10-largest-us-retail-players-2016/ | title=Snapshots of Optical's 10 Largest U.S. Retail Players | publisher=Vision Monday | date=May 16, 2016 | access-date=June 26, 2016 | archive-date=June 26, 2016 | archive-url=https://web.archive.org/web/20160626060627/http://www.visionmonday.com/vm-reports/top-50-retailers/article/snapshots-of-opticals-10-largest-us-retail-players-2016 | url-status=live }} Optometrists working at Costco locations will see patients without Costco memberships,{{cite web|url = http://lifehacker.com/the-best-things-you-can-do-at-costco-without-a-membersh-1591680306|title = The Best Things You Can Do at Costco Without a Membership|date = June 17, 2014|access-date = December 6, 2014|website = The Best Things You Can Do at Costco Without a Membership|publisher = Lifehacker|last = Allan|first = Patrick|archive-date = December 5, 2014|archive-url = https://web.archive.org/web/20141205122541/http://lifehacker.com/the-best-things-you-can-do-at-costco-without-a-membersh-1591680306|url-status = live}} although a membership is required to fill a prescription at the optical department.{{cite web | url=https://www.msn.com/en-us/money/everydaymoney/how-non-members-can-shop-at-costco/ss-BBm7sEY#image=6 | title=How Non-Members Can Shop at Costco | publisher=msn.com | date=August 25, 2015 | access-date=June 28, 2016 | author=Conover, Raechel | archive-url=https://web.archive.org/web/20160816055313/http://www.msn.com/en-us/money/everydaymoney/how-non-members-can-shop-at-costco/ss-BBm7sEY#image=6 | archive-date=August 16, 2016 | url-status=dead }}

=Costco Travel=

Costco Travel is a wholly owned subsidiary of Costco Wholesale and offers leisure travel to Costco members of the United States and Canada.{{cite web |url=http://www.costcotravel.com/ |title=Costco Travel |publisher=Costco Travel |access-date=February 20, 2012 |archive-date=January 30, 2013 |archive-url=https://web.archive.org/web/20130130162502/http://www.costcotravel.com/ |url-status=live }}

The program offers vacation packages to the Caribbean, Europe, Florida, Hawaii, Las Vegas, Mexico, and the South Pacific.{{Cite web|title=Vacation Packages|url=https://www.costcotravel.com/Vacation-Packages|access-date=July 24, 2020|website=Costco Travel|archive-date=July 22, 2020|archive-url=https://web.archive.org/web/20200722173435/https://www.costcotravel.com/Vacation-Packages|url-status=live}}

=Food service=

{{see also|Costco hot dog}}

File:Costco-foodcourt.jpg{{Quote box

| quote = If you raise the [price of the] effing hot dog, I will kill you. Figure it out.

| author = Founder Jim Sinegal to then-CEO W. Craig Jelinek, when Jelinek suggested increasing the price of the hot dog.{{Cite web|last=Margo|date=2018-04-18|title=Costco CEO Craig Jelinek on Shareholders, Costco.com, & Hot Dogs|url=https://425business.com/costco-ceo-craig-jelinek/|access-date=2020-09-21|website=425 Business|archive-date=September 22, 2020|archive-url=https://web.archive.org/web/20200922015135/https://425business.com/costco-ceo-craig-jelinek/|url-status=live}}

| align = right

| width = 25%

| quoted = yes

}}

In 1985, Costco started to sell freshly prepared food through a hot dog cart at its original Seattle warehouse. Most Costco locations now have a food court.{{cite web |last=Myers |first=Dan |date=November 6, 2017 |title=10 Things You Didn't Know About Costco Food Court |url=http://www.thedailymeal.com/eat/10-things-you-didn-t-know-about-costco-food-court |url-status=live |archive-url=https://web.archive.org/web/20151204170532/http://www.thedailymeal.com/eat/10-things-you-didn-t-know-about-costco-food-court |archive-date=December 4, 2015 |access-date=November 30, 2015 |website=DailyMeal.com}} They can be indoors or outdoors,{{cite news |last=Myers |first=Dan |date=November 30, 2015 |title=Things You Didn't Know About Costco Food Court |url=http://www.foxnews.com/leisure/2015/11/30/things-didnt-know-about-costco-food-court/?intcmp=hpff |url-status=dead |archive-url=https://web.archive.org/web/20151203112559/http://www.foxnews.com/leisure/2015/11/30/things-didnt-know-about-costco-food-court/?intcmp=hpff |archive-date=December 3, 2015 |access-date=November 30, 2015 |work=Fox News}} but the menu is essentially the same: hot dog with drink (one of the most popular items), pizza, frozen yogurt/ice cream, Pepsico beverages, baked items, and sandwiches.{{Cite web|url=https://www.allcateringmenuprices.com/costco-catering-menu-prices/|title=COSTCO CATERING MENU PRICES | Costco Party Platters, Trays, etc.|date=November 24, 2014 |access-date=February 8, 2020|archive-date=July 28, 2020|archive-url=https://web.archive.org/web/20200728233033/https://www.allcateringmenuprices.com/costco-catering-menu-prices/|url-status=live}} Costco offers its signature quarter-pound 100% beef hot dog and {{convert|20|USoz}} drink (with refills) for {{US$|1.50}}, the same price since 1985. Some US locations also offer Polish sausage or bratwurst in addition to hot dogs, at the same $1.50 price.{{cite news|url=http://seattletimes.nwsource.com/html/restaurants/2003014234_warehousedining24.html |work=The Seattle Times |first=Karen |last=Gaudette |title=Costco is the place for inexpensive dining |date=May 24, 2006 |url-status=dead |archive-url=https://web.archive.org/web/20110219042740/http://seattletimes.nwsource.com/html/restaurants/2003014234_warehousedining24.html |archive-date=February 19, 2011 }}{{cite news |author=Wight |first1=David |last2=Bjorkman |first2=Steve (Illustrator) |date=March 2009 |title=Order in the Court (Costco food courts consistently deliver the value, quality, and efficiency members appreciate) |url=http://www.costcoconnection.com/connection/200903/?pg=24 |url-status=live |archive-url=https://web.archive.org/web/20130116172053/http://www.costcoconnection.com/connection/200903/?pg=24 |archive-date=January 16, 2013 |access-date=July 14, 2009 |work=Costco Connection |pages=20–24}} History of Costco Food Courts.{{Cite news|url=https://www.seattletimes.com/business/retail/costco-changes-up-food-court-menu-but-the-1-50-hot-dog-deal-remains/|title=Costco changes up food court menu, but the $1.50 hot dog deal remains|last=Romano|first=Benjamin|date=July 5, 2018|work=The Seattle Times|access-date=August 12, 2018|archive-date=August 13, 2018|archive-url=https://web.archive.org/web/20180813111530/https://www.seattletimes.com/business/retail/costco-changes-up-food-court-menu-but-the-1-50-hot-dog-deal-remains/|url-status=live}}

The hot dog sausages were kosher and supplied by Hebrew National and Sinai Kosher until 2009, when supply issues{{cite news |last1=Meyersohn |first1=Nathaniel |title=Why Costco's $1.50 hot dog combo and 99-cent Arizona iced tea still cost the same |url=https://www.cnn.com/2022/07/08/business/costco-hot-dog-arizona-ice-tea-inflation/index.html |access-date=July 1, 2023 |work=CNN Business |date=July 8, 2022 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702050322/https://www.cnn.com/2022/07/08/business/costco-hot-dog-arizona-ice-tea-inflation/index.html |url-status=live }} and low profit margins led Costco to start producing them in-house under the Kirkland Signature label to maintain the $1.50 price. In Australia and New Zealand, the hot dog is made of pork and is sold with a large soda for $1.99 (AUD/NZD). In Canada, the price for a hot dog and soda with refills is C$1.50.{{cite magazine|url=http://www.costcoconnection-cdn.texterity.com/connection/200903/data/cotsco200903us-dl.pdf?lm=1237380599000|title=Order in the court|magazine=Costco Connection|date=March 2009|volume=24|issue=3|page=21}}{{Dead link|date=July 2018 |bot=InternetArchiveBot |fix-attempted=yes }} In Mexico, the hot dog is made of 100% beef and includes a drink (with refills) for MXN$35. In the UK, the hot dog is also made from beef and customers also get a drink (with refills) for £1.50. Costco sold more than 137{{nbsp}}million quarter-pound (113 g) hot dogs in its food courts in 2017. In Taiwan and Japan, the hot dog is made of pork as well. Japan's price for their 120-gram (4½ oz.) hot dog and refillable 600-ml (20 fl. oz.) drink is ¥180.{{cite web | last=Compton | first=Natalie B. | title=Costco Is Even Better in Taiwan | website=Vice | date=February 25, 2017 | url=https://www.vice.com/en_us/article/ypeadx/costco-is-even-better-in-taiwan | access-date=December 11, 2019 | archive-date=December 11, 2019 | archive-url=https://web.archive.org/web/20191211233515/https://www.vice.com/en_us/article/ypeadx/costco-is-even-better-in-taiwan | url-status=live }}

In a July 2024 interview, CEO Ron Vachris reiterated Costco's commitment to the {{US$|1.50}} price point for the hot dog combo and promised that the price would not rise on his watch.

As of April 2024, cheese or pepperoni pizza (along with pre-ordering of full pizzas to take home), chicken bakes, ice cream (vanilla, chocolate, or twist), ice cream sundae, fruit smoothies, latte freeze (without chocolate), mocha freeze (with chocolate), and chocolate chunk cookies (replacement of twisted churros) are offered at all United States locations.{{Cite web |date=June 1, 2022 |title=Costco Food Menu Prices - Costco Menu |url=https://costcomenu.com/ |access-date=June 12, 2022 |website=costcomenu.com |archive-date=June 30, 2022 |archive-url=https://web.archive.org/web/20220630032455/https://costcomenu.com/ |url-status=live }} Some food court items are only available in certain countries.{{Cite web |date=June 18, 2022 |title=Costco Food Court - Menu, Prices, Hours, Nutrition, Membership |url=https://costcofoodcourt.org/ |access-date=June 27, 2022 |website=costcofoodcourt.org |url-status=live |archive-date=August 25, 2022 |archive-url=https://web.archive.org/web/20220825193727/https://costcofoodcourt.org/ }} For example, the bulgogi bake and mango boba tea are only available in Australia, Taiwan, South Korea, and Japan;{{cite web |last=Baseel |first=Casey |date=February 13, 2014 |title=Costco Japan's bulgogi bake is a melting pot of deliciousness |url=http://en.rocketnews24.com/2014/02/13/costco-japans-bulgogi-bake-is-a-melting-pot-of-deliciousness/ |url-status=live |archive-url=https://web.archive.org/web/20150422031718/http://en.rocketnews24.com/2014/02/13/costco-japans-bulgogi-bake-is-a-melting-pot-of-deliciousness/ |archive-date=April 22, 2015 |access-date=April 5, 2015 |website=Sora News 24}} poutine is available in Canada and France. There are, however, temporary menu items available exclusively in several countries, like the pastor taco-topped pizzas in Mexico.{{cite web|title=Costco Food Court Nutrition Data|url=https://docs.google.com/file/d/0B7SwqP0b-svxRmtOeXhzY0NUaENvdGRaeUZld19nUQ/edit?pli=1|access-date=February 20, 2012|archive-date=October 19, 2015|archive-url=https://web.archive.org/web/20151019055926/https://docs.google.com/file/d/0B7SwqP0b-svxRmtOeXhzY0NUaENvdGRaeUZld19nUQ/edit?pli=1|url-status=live}}{{cite web|last1=Lopez|first1=Fana|date=April 2018|title=¡Amantes de Costco y los taquitos! Ya existe la pizza de pastor y el mundo no volverá a ser igual|url=https://www.buzzfeed.com/fanalopez/amantes-de-costco-y-los-taquitos-ya-existe-la-pizza-de|website=Buzzfeed|language=es|access-date=April 2, 2018|archive-date=May 26, 2018|archive-url=https://web.archive.org/web/20180526042009/https://www.buzzfeed.com/fanalopez/amantes-de-costco-y-los-taquitos-ya-existe-la-pizza-de|url-status=live}}

class="wikitable"

|+United States menu changes in March 2020

!Original Item

!Replacement Item

Veggie/Combo Pizza

|No longer offered (this includes the discontinuation of the "Italian Sausage" pizza topping as well)

Frozen Yogurt

|Vanilla ice cream (with addition of chocolate sauce sundae)

Turkey Provolone

|No longer offered

Twisted Churro

|Replaced with dual-flavor churro in late 2020/early 2021, name remained same but was discontinued and was replaced by chocolate chunk cookies

Chicken Caesar Salad

|Has resumed at locations

Chicken Bake

|Replaced with factory-made item of same name, no longer hand-made in store (at most locations)

Sauerkraut (topping)

|rowspan=2|No longer offered

Deli Mustard (condiment)
Relish (condiment)

|Offered in select locations, expected to resume at all locations (no time period for return)

Due to slow sales, in 2009, the pretzel was replaced by the churro.{{cite magazine|url=http://www.costcoconnection-cdn.texterity.com/connection/200905/data/costco200905us-dl.pdf?lm=1241210627000|title=Food Court questions|magazine=Costco Connection|date=May 2009|page=59}}{{Dead link|date=July 2018 |bot=InternetArchiveBot |fix-attempted=yes }} In April 2013, Pepsi replaced all Coca-Cola fountain drinks at US locations because Coke had raised its prices; this helped keep the hot dog combo with soda at its original {{US$|1.50}} price;{{cite news |last=Ho |first=Vanessa |date=January 31, 2013 |title=Costco's $1.50 hot dog-soda combo to get big change |url=http://blog.seattlepi.com/thebigblog/2013/01/31/costcos-1-50-hot-dog-soda-combo-to-get-big-change |url-status=live |archive-url=https://web.archive.org/web/20130205061309/http://blog.seattlepi.com/thebigblog/2013/01/31/costcos-1-50-hot-dog-soda-combo-to-get-big-change/ |archive-date=February 5, 2013 |access-date=February 7, 2013 |work=Seattle Post-Intelligencer}} however, in late 2024, it was reported that Costco would be reverting to Coca-Cola products in early 2025.{{cite web |last=Steinberg |first=Brooke |title=Costco is making a big change to its food court next year that could divide fans |website=New York Post |date=2024-12-20 |url=https://nypost.com/2024/12/20/lifestyle/costco-is-making-a-big-change-to-its-food-court-in-2025/ |access-date=2025-01-06}}

Costco started selling a cheeseburger with a {{convert|1/3|lb|g|adj=on}} patty at select stores across Western Washington and Southern California in mid-2017 as a test item, with comparisons drawn to those of Shake Shack.{{cite news |last1=Vinh |first1=Tan |title=Costco is testing a new burger in Seattle, and it might remind you of Shake Shack |url=https://www.seattletimes.com/life/food-drink/costco-is-testing-a-new-burger-in-seattle-and-it-might-remind-you-of-shake-shack/ |access-date=July 2, 2023 |work=The Seattle Times |date=June 26, 2017 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702071932/https://www.seattletimes.com/life/food-drink/costco-is-testing-a-new-burger-in-seattle-and-it-might-remind-you-of-shake-shack/ |url-status=live }}{{cite news |last1=Luna |first1=Nancy |title=Costco testing Shake Shack copycat cheeseburger in Southern California |url=https://www.ocregister.com/2017/07/05/costco-testing-shake-shack-copycat-cheeseburger-in-southern-california/ |access-date=July 2, 2023 |work=The Orange County Register |date=July 5, 2017 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702071933/https://www.ocregister.com/2017/07/05/costco-testing-shake-shack-copycat-cheeseburger-in-southern-california/ |url-status=live }} The cheeseburger was not successful; its availability only spread to around a dozen locations before it was discontinued in 2020.{{Cite magazine |last=Martinson |first=Nicole |date=March 3, 2020 |title=Say Goodbye to Costco's Food Court Burger |url=https://www.seattlemet.com/eat-and-drink/2020/03/say-goodbye-to-costco-s-food-court-burger |magazine=Seattle Met |access-date=July 2, 2023 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702071933/https://www.seattlemet.com/eat-and-drink/2020/03/say-goodbye-to-costco-s-food-court-burger |url-status=live }}

Diced onion was discontinued in March 2020 but returned as a topping in May 2023.{{Cite web |last=Walker |first=Clay |date=May 13, 2023 |title=One of Costco's beloved food court items is making its grand return, and superfans are overjoyed |url=https://www.insider.com/costco-food-court-fan-favorite-onions-hot-dogs-returning-2023-5 |access-date=October 28, 2023 |website=Insider}}

=Costco credit card=

On April 1, 2016, in the US, Citigroup became the exclusive issuer of Costco's branded credit cards. Prior to that, Costco credit cards had been issued by American Express since 2001, and Costco accepted only American Express cards for credit transactions. After the switch of its co-branded cards to Citi, Costco ceased accepting AmEx and began exclusively accepting Visa. AmEx cited the reason for the split that Costco was asking for lower transaction fees than AmEx was willing to grant.{{cite news| url=https://www.latimes.com/business/la-fi-costco-visa-20160623-snap-story.html| title=Costco's launch of new Citi Visa card leaves angry customers on hold| first=Ellen| last=Cannon| newspaper=Los Angeles Times| date=June 23, 2016| access-date=February 20, 2020| archive-date=July 29, 2020| archive-url=https://web.archive.org/web/20200729133044/https://www.latimes.com/business/la-fi-costco-visa-20160623-snap-story.html| url-status=live}}{{cite news| url=https://www.latimes.com/business/la-fi-costco-visa-20150302-story.html| title=Costco names Citi, Visa as new credit card partners after AmEx deal ends| first=Javier| last=Panzar| newspaper=Los Angeles Times| date=March 2, 2015| access-date=February 20, 2020| archive-date=June 21, 2020| archive-url=https://web.archive.org/web/20200621235447/https://www.latimes.com/business/la-fi-costco-visa-20150302-story.html| url-status=live}}{{cite news | title=Costco's Transition to Visa Cards Riddled With Problems | work=The New York Times | date=June 23, 2016 | first=Stacy | last=Cowley | url=https://www.nytimes.com/2016/06/24/business/costcos-transition-to-visa-cards-riddled-with-problems.html | access-date=August 22, 2019 | archive-date=August 22, 2019 | archive-url=https://web.archive.org/web/20190822230356/https://www.nytimes.com/2016/06/24/business/costcos-transition-to-visa-cards-riddled-with-problems.html | url-status=live }} In Canada, Costco ended its AmEx relationship in 2014, and starting in 2015,{{cite news|url=https://financialpost.com/news/retail-marketing/costco-canada-american-express|access-date=December 21, 2020|title=Costco to stop accepting American Express cards in Canada, switches to Capital One and Mastercard|last1=Schecter|first1=Barbara|last2=Leong|first2=Melissa|date=September 18, 2014|archive-date=November 24, 2020|archive-url=https://web.archive.org/web/20201124072658/https://financialpost.com/news/retail-marketing/costco-canada-american-express|url-status=live}} it partnered with Capital One Mastercard for branded credit cards.{{cite web|url=https://www.costco.ca/capital-one-costco-mastercard.html|title=Capital One Mastercard {{pipe}} Costco|access-date=December 21, 2020|work=Costco.ca|archive-date=December 20, 2020|archive-url=https://web.archive.org/web/20201220170250/https://www.costco.ca/capital-one-costco-mastercard.html|url-status=live}} In 2020, Capital One announced it would be ending the partnership in late 2021.{{cite news|url=https://www.yahoo.com/news/capital-one-canada-offices-partnerships-221047369.html|access-date=December 21, 2020|work=Yahoo! News|last=Khan|first=Ahmar|date=October 29, 2020|title=Capital One ending Costco and Hudson's Bay contracts, closing offices in Montreal and Toronto|archive-date=November 16, 2020|archive-url=https://web.archive.org/web/20201116190142/https://www.yahoo.com/news/capital-one-canada-offices-partnerships-221047369.html|url-status=live}} It was announced that beginning in March 2022, Costco will begin a partnership with CIBC Mastercard.{{Cite web|title=Learn About The Benefits Of Your New CIBC Costco Mastercard |url=https://www.cibc.com/en/personal-banking/credit-cards/costco.html|access-date=November 25, 2021|website=CIBC|archive-date=November 24, 2021|archive-url=https://web.archive.org/web/20211124144131/https://www.cibc.com/en/personal-banking/credit-cards/costco.html|url-status=live}} Costco branded credit cards from both issuers also serve as alternate Costco membership cards, with a customized reverse side containing membership info.{{cite web|url=https://www.costco.com/credit-card.html|access-date=December 21, 2020|title=Costco Anywhere Visa Cards By Citi|work=Costco.com|archive-date=December 21, 2020|archive-url=https://web.archive.org/web/20201221202953/https://www.costco.com/credit-card.html|url-status=live}}

= Costco Audiobook App =

In March 2021, Costco started selling audiobooks and launched a corresponding iOS and Android app to listen to purchases.{{Cite web |last=Kozlowski |first=Michael |date=March 23, 2021 |title=Costco launches new Audiobook Store and iOS App |url=https://goodereader.com/blog/audiobooks/costco-launches-new-audiobook-store-and-ios-app |access-date=April 25, 2021 |website=goodereader.com |archive-date=April 17, 2021 |archive-url=https://web.archive.org/web/20210417212900/https://goodereader.com/blog/audiobooks/costco-launches-new-audiobook-store-and-ios-app |url-status=live }} The app is free; however, the books are exclusive to Costco members. The retailer sells audiobooks in bundles grouped by genre or author, with prices ranging from $5 to $50. Audiobooks are currently only available at US locations.{{Cite web |last=Meisenzahl |first=Mary |date=March 24, 2021 |title=Costco is adding an audiobook app as a new perk for members ahead of an anticipated price hike |url=https://www.businessinsider.com/costco-adds-audiobook-app-for-members-before-expected-price-increase-2021-3 |url-status=live |archive-url=https://web.archive.org/web/20210327162022/https://www.businessinsider.com/costco-adds-audiobook-app-for-members-before-expected-price-increase-2021-3 |archive-date=March 27, 2021 |access-date=March 29, 2021 |website=Business Insider}}

Labor relations

= Employee rights =

{{update|section|date=June 2020}}

While some former Price Club locations in California and the northeastern United States are staffed by Teamsters,{{cite web |last=Aloise |first=Rome |title=Costco Workers Stand Together |url=http://www.teamster.org/content/costco-workers-stand-together |url-status=dead |archive-url=https://web.archive.org/web/20120229043521/http://www.teamster.org/content/costco-workers-stand-together |archive-date=February 29, 2012 |access-date=February 20, 2012 |publisher=Teamster.org}} the majority of Costco locations are not unionized, although there was a drive in 2012 to unionize some locations in Canada.{{cite web|title=Unionize Costco|url=http://www.unionizecostco.com/|access-date=August 15, 2012|archive-url=https://web.archive.org/web/20130116172055/http://www.unionizecostco.com/|archive-date=January 16, 2013|url-status=dead}} The Teamsters report that over 15,000 Costco employees are union members.{{Cite web|title=Teamsters Local 986 Costco Members|url=https://www.local986.org/costco.php|access-date=March 28, 2021|website=www.local986.org|archive-date=March 31, 2021|archive-url=https://web.archive.org/web/20210331062354/https://www.local986.org/costco.php#:~:text=Teamsters%20Local%20986-,Did%20you%20know%20that%20the%20Teamsters%20represent%20more%20than%2015,000,for%20more%20than%2040%20years!|url-status=live}} The non-union locations have revisions to their Costco Employee Agreement every three years concurrent with union contract ratifications in locations with collective bargaining agreements. The Employee Agreement sets forth such things as benefits, wages, disciplinary procedures, paid holidays, bonuses, and seniority. The Employee Agreement is subject to change by Costco at any time and offers no absolute protection to the workers. As of June 2022, non-supervisory hourly wages ranged from $17.50 to $28.45 in the US, $16.00 to $28.70 in Canada, and £9.75 to £13.90 in the United Kingdom. In the US {{as of|2005|lc=y}}, eighty-five{{nbsp}}percent of Costco's workers had health insurance, compared with less than fifty percent at Walmart and Target.{{cite news|url=https://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html|title=How Costco Became the Anti-Wal-Mart|newspaper=The New York Times|last=Greenhouse|first=Steven|date=July 17, 2005|access-date=February 18, 2017|archive-date=April 5, 2015|archive-url=https://web.archive.org/web/20150405052851/http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html|url-status=live}} Health benefits include coverage through Aetna,{{Cite web |last=Martin |first=Erik |title=Costco health insurance plan options |url=https://www.insurance.com/health-insurance/coverage/costco-aetna.html |access-date=May 16, 2022 |website=Insurance.com |archive-date=August 3, 2021 |archive-url=https://web.archive.org/web/20210803180358/https://www.insurance.com/health-insurance/coverage/costco-aetna.html |url-status=live }} remote primary care through Teladoc, second opinions and clinical navigation by Grand Rounds, varieties of health insurance agencies with Custom Benefit Consultants Inc. (CBC), and wellness coaching by Omada.{{Citation needed|date=July 2019}}

In February 2021, Costco announced that it would be raising the starting rate for its hourly store workers in the United States to $16 an hour. Costco has been actively raising their minimum wage starting with $14 during 2018, and into $15 during 2019. They further add that 20% of their hourly employees will be subject to the minimum wage change.{{cite news |date=February 25, 2021 |title=Costco raises minimum wage to $16 |url=https://sftimes.com/costco-raises-minimum-wage-to-16/ |url-status=live |archive-url=https://web.archive.org/web/20210423143544/https://sftimes.com/costco-raises-minimum-wage-to-16/ |archive-date=April 23, 2021 |access-date=March 1, 2021 |publisher=The San Francisco Times}}

A location in Norfolk, Virginia, unionized with the Teamsters in 2023.{{cite web | last=Delesline III | first=Nate | title=Costco workers at Virginia store unionize | website=Retail Dive | date=December 22, 2023 | url=https://www.retaildive.com/news/costco-workers-at-virginia-store-unionize/703346/ | access-date=April 8, 2024 | archive-date=April 4, 2024 | archive-url=https://web.archive.org/web/20240404074139/https://www.retaildive.com/news/costco-workers-at-virginia-store-unionize/703346/ | url-status=live }} The vote in Norfolk was the first successful Costco union drive in over twenty years.{{cite web |last=Haden |first=Jeff |title=The Costco Union Drive Shows the Importance of Promoting Your C-Suite from Within |website=Inc.com |date=January 7, 2024 |url=https://www.inc.com/jeff-haden/the-costco-union-drive-shows-importance-of-promoting-your-c-suite-from-within.html |access-date=April 8, 2024 |archive-date=April 8, 2024 |archive-url=https://web.archive.org/web/20240408043644/https://www.inc.com/jeff-haden/the-costco-union-drive-shows-importance-of-promoting-your-c-suite-from-within.html |url-status=live }}

In January 2025, the Teamsters union representing over 18,000 Costco employees voted to strike, demanding "fair wages and benefits."{{cite web | last=Sarnoff | first=Leah | last2=Reynolds | first2=Darren | title=Costco's unionized workers vote to authorize nationwide strike | website=ABC News | date=2025-01-20 | url=https://abcnews.go.com/US/costcos-unionized-workers-vote-authorize-nationwide-strike/story?id=117875222 | access-date=2025-01-21}}

= Contractors =

Costco contracts exclusively with two independent companies to provide employees for product demonstrations (e.g., food samples) at Costco stores: Club Demonstration Services (CDS){{cite magazine |last=Pinsker |first=Joe |title=The Psychology Behind Costco's Free Samples |url=https://www.theatlantic.com/business/archive/2014/10/the-psychology-behind-costcos-free-samples/380969/ |access-date=July 1, 2023 |magazine=The Atlantic |date=October 1, 2014 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702064153/https://www.theatlantic.com/business/archive/2014/10/the-psychology-behind-costcos-free-samples/380969/ |url-status=live }} and Warehouse Demo Services (WDS).{{cite news |last1=Eaton |first1=Dan |title=Employee may not be outside salesperson even if sales work mostly is performed off employer's premises |url=https://www.sandiegouniontribune.com/business/story/2023-01-16/employee-may-not-be-outside-salesperson-even-if-sales-work-mostly-is-performed-off-employers-premises |access-date=July 1, 2023 |work=San Diego Union-Tribune |date=January 16, 2023 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702064152/https://www.sandiegouniontribune.com/business/story/2023-01-16/employee-may-not-be-outside-salesperson-even-if-sales-work-mostly-is-performed-off-employers-premises |url-status=live }}{{cite news |last1=Cicero |first1=Providence |title=Mmm … samples! |url=https://www.seattletimes.com/life/food-drink/mmm-samples/ |access-date=July 1, 2023 |work=The Seattle Times |date=January 11, 2006 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702064152/https://www.seattletimes.com/life/food-drink/mmm-samples/ |url-status=live }} Demonstration employees receive a pay and benefit package that is less than that of Costco employees. {{As of|2017|August|1|df=US}}, demonstrations/samples are provided by CDS in Canada.{{cite web|last=Edmonds|first=Robert|url=http://www.bohemian.com/northbay/we-are-family/Content?oid=2172067|title=We Are Family?|publisher=North Bay Bohemian|date=February 15, 2012|access-date=February 20, 2012|archive-date=January 19, 2012|archive-url=https://web.archive.org/web/20120119025635/http://www.bohemian.com/northbay/we-are-family/Content?oid=2172067|url-status=live}} Product demonstrations at Costco stores in the United States were halted in March 2020 amid the COVID-19 pandemic, with some Costco CDS employees shifted to cleaning tasks before all were laid off when CDS temporarily ceased operations the following month;{{cite news |last1=Walansky |first1=Aly |title=Costco stores stop serving free food samples due to coronavirus concerns |url=https://www.today.com/food/costco-stores-stop-serving-food-samples-due-coronavirus-concerns-t175497 |access-date=July 1, 2023 |work=Today |publisher=NBC News |date=March 7, 2020 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702064152/https://www.today.com/food/costco-stores-stop-serving-food-samples-due-coronavirus-concerns-t175497 |url-status=live }}{{cite news |last1=Sacks |first1=Brianna |last2=Mac |first2=Ryan |title=The Company That Handles Free Samples At Costco Is Shutting Down Because Of The Coronavirus |url=https://www.buzzfeednews.com/article/briannasacks/costco-contractor-cds-free-samples |access-date=July 1, 2023 |work=BuzzFeed News |date=April 3, 2020 }} they were rehired as Costco started resuming demonstrations at select stores in June 2020, with all US stores resuming demonstrations by June 2021.{{cite news |last1=Stych |first1=Anne |title=Costco's beloved free samples will return — bringing jobs along with them |url=https://www.bizjournals.com/bizwomen/news/latest-news/2020/06/costcos-free-samples-will-return-bringing-jobs.html?page=all |access-date=July 1, 2023 |work=Bizwomen |date=June 2, 2020 |archive-date=June 11, 2023 |archive-url=https://web.archive.org/web/20230611090725/https://www.bizjournals.com/bizwomen/news/latest-news/2020/06/costcos-free-samples-will-return-bringing-jobs.html?page=all |url-status=live }}{{cite news |last1=Lacy |first1=Lisa |title=Costco's Free Samples Are Returning—Even If Samplers Don't |url=https://www.adweek.com/commerce/costcos-free-samples-are-returning-even-though-samplers-may-not/ |access-date=July 1, 2023 |work=Adweek |date=June 3, 2021 |archive-date=July 2, 2023 |archive-url=https://web.archive.org/web/20230702065654/https://www.adweek.com/commerce/costcos-free-samples-are-returning-even-though-samplers-may-not/ |url-status=live }}

Discontinued concepts

=Costco Home=

The first Costco Home warehouse opened in December 2002, in Kirkland, Washington.{{cite news |last=Frey |first=Christine |date=December 4, 2002 |title=Costco embraces high-end goods for 'Home' store |url=https://www.seattlepi.com/business/article/Costco-embraces-high-end-goods-for-Home-store-1102428.php |work=Seattle Post-Intelligencer |accessdate=June 29, 2023 |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630003135/https://www.seattlepi.com/business/article/Costco-embraces-high-end-goods-for-Home-store-1102428.php |url-status=live }}{{cite news |last=Allison |first=Melissa |date=April 2, 2009 |title=Costco to close home stores in Kirkland, Arizona |url=https://www.seattletimes.com/business/costco-to-close-home-stores-in-kirkland-arizona/ |url-status=live |archive-url=https://web.archive.org/web/20230306104508/https://www.seattletimes.com/business/costco-to-close-home-stores-in-kirkland-arizona/ |archive-date=March 6, 2023 |access-date=March 6, 2023 |work=The Seattle Times}} The warehouse's concept was to combine the value, setting and members-only elements of Costco's warehouse clubs with the product array one would find at an upscale home store, such as Fortunoff or Crate & Barrel. The Costco Home warehouses sold furniture, housewares, kitchen products and accessories from higher-end brands such as Lexington, Ralph Lauren and Waterford{{cite magazine|url=http://findarticles.com/p/articles/mi_m0FNP/is_1_42/ai_96378460/|title=Costco Home poised to revolutionize high-end furniture|magazine=DSN Retailing Today|date=January 6, 2003|last=Desjardins|first=Doug|access-date=November 27, 2009|archive-date=November 28, 2009|archive-url=https://web.archive.org/web/20091128124814/http://findarticles.com/p/articles/mi_m0FNP/is_1_42/ai_96378460/|url-status=dead}} in a warehouse-club setting. A second warehouse opened in 2004 in Tempe, Arizona.

On April 2, 2009, the company announced that it would be abandoning its Costco Home concept, closing the two existing stores in Kirkland, Washington and Tempe, Arizona on July 3, 2009, and abandoning plans for a third warehouse in Portland, Oregon.{{cite news |last=Gage |first=Susan |date=February 26, 2007 |title=Costco pulls plans for store near Portland International Airport |url=https://www.oregonlive.com/breakingnews/2007/02/costco_pulls_plans_for_store_n.html |url-status=live |archive-url=https://web.archive.org/web/20230306104512/https://www.oregonlive.com/breakingnews/2007/02/costco_pulls_plans_for_store_n.html |archive-date=March 6, 2023 |access-date=March 6, 2023 |work=The Oregonian}} An appliance and furniture warehouse opened in Anchorage, Alaska, in 2024.{{cite news |last=Rhode |first=Scott |date=April 15, 2024 |title=Costco Opens Furniture and Appliance Showroom in South Anchorage |url=https://www.akbizmag.com/featured/costco-opens-furniture-and-appliance-showroom-in-south-anchorage/ |work=Alaska Business |accessdate=July 16, 2024 |archive-date=July 17, 2024 |archive-url=https://web.archive.org/web/20240717054952/https://www.akbizmag.com/featured/costco-opens-furniture-and-appliance-showroom-in-south-anchorage/ |url-status=live }}

=Costco Fresh=

A grocery-centered format, named Costco Fresh, was announced in September 1999 for a {{convert|75,000|sqft|sqm|adj=mid}} two-story space in Manhattan, New York City.{{cite news |last=Weir |first=Richard |date=September 19, 1999 |title=Teeth Bared Over Costco's Plans |url=https://www.nytimes.com/1999/09/19/nyregion/neighborhood-report-greenwich-village-teeth-bared-over-costco-s-plans.html |work=The New York Times |accessdate=June 29, 2023 |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630003135/https://www.nytimes.com/1999/09/19/nyregion/neighborhood-report-greenwich-village-teeth-bared-over-costco-s-plans.html |url-status=live }} The company pulled out of an agreement to build the Manhattan store later that year after cost increases and local protests.{{cite news |last=Pristin |first=Terry |date=December 11, 1999 |title=Costco Abandons Plans For a 14th Street Store |url=https://www.nytimes.com/1999/12/11/nyregion/costco-abandons-plans-for-a-14th-street-store.html |work=The New York Times |accessdate=June 29, 2023 |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630003133/https://www.nytimes.com/1999/12/11/nyregion/costco-abandons-plans-for-a-14th-street-store.html |url-status=live }} The concept was revived in late 2002 for a store in Bellevue, Washington, near its Issaquah headquarters, at a former Kmart. The new store would primarily sell fresh produce, meats, seafood, and baked goods instead of bulk items, but would also have several features from normal Costco warehouses; it would also have a modified logo, with a fruit stem growing from the first "o" in the Costco name.{{cite news |last=Bishop |first=Todd |date=September 25, 2002 |title=Costco will try out a fresh idea in Bellevue |url=https://www.seattlepi.com/business/article/Costco-will-try-out-a-fresh-idea-in-Bellevue-1096916.php |work=Seattle Post-Intelligencer |accessdate=June 29, 2023}} The concept was dropped the following year, but the company retained interest in building a normal Costco store at the Bellevue site until 2008, when they abandoned the plans due to zoning regulations that would have required daylighting an underground creek.{{cite news |last=Bach |first=Ashley |date=July 26, 2007 |title=Costco looking at Kelsey Creek for first Bellevue store |url=https://www.seattletimes.com/seattle-news/costco-looking-at-kelsey-creek-for-first-bellevue-store/ |work=The Seattle Times |accessdate=June 29, 2023}}{{cite news |last=Allison |first=Melissa |date=November 5, 2008 |title=Costco reportedly drops Kelsey Creek store plan |url=https://www.seattletimes.com/business/costco-reportedly-drops-kelsey-creek-store-plan/ |work=The Seattle Times |accessdate=June 29, 2023 |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630003135/https://www.seattletimes.com/business/costco-reportedly-drops-kelsey-creek-store-plan/ |url-status=live }}

Controversies

In 2010, Mercy for Animals conducted an undercover investigation at Buckeye Veal Farm, a veal supplier to Costco.{{cite web|url=http://www.mercyforanimals.org/veal/|title=Crated Cruelty: The Hidden Price of Veal|publisher=Mercy For Animals|archive-url=https://web.archive.org/web/20130116172053/http://www.mercyforanimals.org/veal/|archive-date=January 16, 2013|url-status=dead|access-date=September 27, 2012}} Immediately following the investigative release, Costco adopted a policy against purchasing veal from producers that use the crate-and-chain production method.{{cite web |last=Allison |first=Melissa |date=August 31, 2010 |title=Costco bans treatment of veal calves that industry calls typical |url=http://seattletimes.com/html/businesstechnology/2012772042_costco01.html |url-status=live |archive-url=https://web.archive.org/web/20130120085835/http://seattletimes.com/html/businesstechnology/2012772042_costco01.html |archive-date=January 20, 2013 |access-date=September 27, 2012 |work=The Seattle Times}} The case prompted Ohio lawmakers to vote in favor of a veal crate phase-out in the state.{{cite web|url=http://www.mercyforanimals.org/progress-for-ohio.aspx|title=Progress for Ohio's Farmed Animals|last=Runkle|first=Nathan|publisher=Mercy For Animals|access-date=September 27, 2012|archive-date=October 13, 2012|archive-url=https://web.archive.org/web/20121013213405/http://www.mercyforanimals.org/progress-for-ohio.aspx|url-status=live}}

In 2012, Mercy for Animals conducted another undercover investigation of a pork supplier to major retailers such as Costco, Walmart, Safeway, Kroger, and Kmart.{{cite web|url=http://www.walmartcruelty.com/|title=Walmart Cruelty: The Hidden Cost of Walmart's Pork|publisher=Mercy For Animals|access-date=September 4, 2012|archive-date=August 30, 2012|archive-url=https://web.archive.org/web/20120830213558/http://www.walmartcruelty.com/|url-status=live}} Before the public release of the investigation, Costco announced they would begin requiring their pork suppliers to phase out gestation crates.{{cite web|url=http://www.mfablog.org/2012/07/victory-costco-and-kmart-commit-to-ditching-gestation-crates-following-mfa-investigation.html|title=Victory! Costco and Kmart Commit to Ditching Gestation Crates Following MFA Investigation|last=Runkle|first=Nathan|publisher=Mercy For Animals|access-date=September 4, 2012|archive-url=https://web.archive.org/web/20120822113614/http://www.mfablog.org/2012/07/victory-costco-and-kmart-commit-to-ditching-gestation-crates-following-mfa-investigation.html|archive-date=August 22, 2012|url-status=dead}}{{cite web|url=http://www.mfablog.org/2012/05/safeway-pledges-to-eliminate-cruel-gestation-crates-from-supply-chain.html|title=Safeway Pledges to Eliminate Cruel Gestation Crates from Supply Chain|last=Runkle|first=Nathan|publisher=Mercy For Animals|access-date=September 2, 2012|archive-url=https://web.archive.org/web/20121013213752/http://www.mfablog.org/2012/05/safeway-pledges-to-eliminate-cruel-gestation-crates-from-supply-chain.html|archive-date=October 13, 2012|url-status=dead}}

In 2014, The Guardian reported that Costco is a client of Charoen Pokphand Foods. Over six months, The Guardian traced down a supply chain from slave ships in Asian waters to leading producers and retailers. Costco has published a statement saying it has had a supplier code of conduct since 1999 which does not allow this practice, and that independent auditors check for violations regularly.{{cite news|last=Hodal|first=Kate|url=https://www.theguardian.com/global-development/2014/jun/10/supermarket-prawns-thailand-produced-slave-labour|title=Revealed: Asian slave labour producing prawns for supermarkets in US, UK|date=June 10, 2014|access-date=June 11, 2014|newspaper=The Guardian |author2=Chris Kelly|quote=Charoen Pokphand (CP) Foods, buys fishmeal, which it feeds to its farmed prawns, from some suppliers that own, operate or buy from fishing boats manned with slaves. ... CP Foods admits that slave labour is part of its supply chain.|author3=Felicity Lawrence|archive-date=April 28, 2020|archive-url=https://web.archive.org/web/20200428183820/https://www.theguardian.com/global-development/2014/jun/10/supermarket-prawns-thailand-produced-slave-labour|url-status=live}}{{cite news |last=Picchi |first=Aimee |date=June 11, 2014 |title=Shrimp Sold at Walmart, Costco Tied to Slave Labor |url=https://www.cbsnews.com/news/shrimp-sold-at-walmart-costco-tied-to-slave-labor/ |url-status=live |archive-url=https://web.archive.org/web/20200728230134/https://www.cbsnews.com/news/shrimp-sold-at-walmart-costco-tied-to-slave-labor/ |archive-date=July 28, 2020 |access-date=April 17, 2020 |work=CBS Money Watch}}{{cite news |last=Lawrence |first=Felicity |date=June 10, 2014 |title=Walmart, Tesco and Costco among retailers responding to revelations of slavery in prawn supply chains |url=https://www.theguardian.com/global-development/2014/jun/10/walmart-tesco-costco-retailers-respond-prawn-supply-slaves |url-status=live |archive-url=https://web.archive.org/web/20170510221426/https://www.theguardian.com/global-development/2014/jun/10/walmart-tesco-costco-retailers-respond-prawn-supply-slaves |archive-date=May 10, 2017 |access-date=December 11, 2016 |work=The Guardian }}{{cite web|url=http://www.costco.com/disclosure-regarding-human-trafficking-and-anti-slavery.html|title=Disclosure Regarding Human Trafficking and Anti-Slavery|date=June 2014|publisher=Costco|access-date=July 5, 2014|archive-date=July 5, 2014|archive-url=https://web.archive.org/web/20140705222716/http://www.costco.com/disclosure-regarding-human-trafficking-and-anti-slavery.html|url-status=live}}

In 2014, the US Department of Justice and the United States Environmental Protection Agency said that Costco had failed to promptly repair leaks from its refrigeration equipment of the refrigerant chlorodifluoromethane at its stores. Costco paid a fine of $US335,000 and agreed to spend $US2 million over three years to fix refrigerant leaks and make improvements at 274 stores.{{Cite web |last=Stempel |first=Jonathan |date=September 3, 2014 |title=Costco Fined and Forced to Fix Refrigerant Leaks |url=https://www.scientificamerican.com/article/costco-fined-and-forced-to-fix-refrigerant-leaks/ |access-date=March 21, 2024 |website=Scientific American}}

In 2015, the Humane Society of the United States conducted an undercover investigation at an egg supplier to Costco.{{cite magazine |last=Worl |first=Justin |date=June 9, 2015 |title=An Undercover Investigation Alleges Major Mistreatment of Egg-Laying Hens |url=https://time.com/3914696/cage-free-chicken-investigation/ |url-status=live |archive-url=https://web.archive.org/web/20151020001532/http://time.com/3914696/cage-free-chicken-investigation/ |archive-date=October 20, 2015 |access-date=October 21, 2015 |magazine=Time}} An undercover worker at Hillandale Farms, a major egg supplier to Costco, filmed conditions in which egg-laying hens lived in tiny wire cages.{{cite web |title=Costco: It's Time to Go Cage-Free |url=http://action.humanesociety.org/site/PageServer?pagename=mconnect_costco&s_src=web_vanity_costco |url-status=dead |archive-url=https://web.archive.org/web/20151024171922/http://action.humanesociety.org/site/PageServer?pagename=mconnect_costco&s_src=web_vanity_costco |archive-date=October 24, 2015 |access-date=October 21, 2015 |website=The Humane Society of the United States}} Following the investigations, several celebrities including Brad Pitt and Ryan Gosling publicly wrote to Costco to address this issue.{{cite web |last=Fitzpatrick |first=Hayley |date=July 20, 2015 |title=Brad Pitt has a major grievance with Costco |url=http://www.businessinsider.com/brad-pitt-asks-costco-to-stop-selling-eggs-from-caged-hens-2015-7 |url-status=live |archive-url=https://web.archive.org/web/20151029145025/http://www.businessinsider.com/brad-pitt-asks-costco-to-stop-selling-eggs-from-caged-hens-2015-7 |archive-date=October 29, 2015 |access-date=October 21, 2015 |website=Business Insider}} Following efforts by animal protection nonprofits including The Humane League,{{cite web|url=http://thehumaneleague.com/petitions/costco.html|title=Take A Stand Against Animal Cruelty|website=thehumaneleague.com|archive-url=https://web.archive.org/web/20151006102050/http://www.thehumaneleague.com/petitions/costco.html|archive-date=October 6, 2015|url-status=dead|access-date=October 21, 2015}} Costco released an updated commitment to source exclusively cage-free eggs in its operations.{{cite web|url=http://qz.com/582427/after-months-of-pressure-costco-commits-to-a-cage-free-egg-supply/|title=After months of pressure, Costco commits to a cage-free egg supply|last=Shanker|first=Deena|website=Quartz|date=December 28, 2015 |access-date=February 26, 2016|archive-date=March 2, 2016|archive-url=https://web.archive.org/web/20160302200432/http://qz.com/582427/after-months-of-pressure-costco-commits-to-a-cage-free-egg-supply/|url-status=live}}

In July 2015, the US Consumer Product Safety Commission recalled the EKO Sensible Eco Living Trash Can that Costco was selling due to a black plastic protective collar in the opening on the back of the trash can that could be dislodged and expose a sharp edge. Costco was fined US$3.85 million for receiving 92 complaints about the trash can, including 60 complaints from those that sustained injuries, but did not notify the commission about the defect.{{Cite web |date=October 5, 2018 |title=Costco Agrees to $3.85 Million Civil Penalty, Compliance Program for Failure to Report Defective Trash Cans |url=https://www.cpsc.gov/Newsroom/News-Releases/2019/costco-agrees-to-385-million-civil-penalty-compliance-program-for-failure-to-report |access-date=March 21, 2024 |website=U.S. Consumer Product Safety Commission |archive-date=March 21, 2024 |archive-url=https://web.archive.org/web/20240321130620/https://www.cpsc.gov/Newsroom/News-Releases/2019/costco-agrees-to-385-million-civil-penalty-compliance-program-for-failure-to-report |url-status=live }}

In 2016, a follow-up to Costco's shift to cage-free eggs by animal rights group Direct Action Everywhere (DxE) reported cannibalism and high mortality at a cage-free Costco egg supplier.{{cite news|url=https://www.nytimes.com/2016/10/21/business/video-reveals-how-cage-free-hens-live-animal-advocates-say.html|title=How 'Cage-Free' Hens Live, in Animal Advocates' Video|last=Strom|first=Stephanie|work=The New York Times|date=October 20, 2016 |access-date=January 9, 2017|archive-date=December 17, 2016|archive-url=https://web.archive.org/web/20161217145117/http://www.nytimes.com/2016/10/21/business/video-reveals-how-cage-free-hens-live-animal-advocates-say.html|url-status=live}}{{cite news |last=Moyer |first=Justin Wm. |date=October 20, 2016 |title='Her head has been torn off': Activists' film alleges abuse at Costco-linked cage-free egg farm |url=https://www.washingtonpost.com/news/animalia/wp/2016/10/20/her-head-has-been-torn-off-activists-film-alleges-abuse-at-costco-linked-cage-free-egg-farm/ |url-status=live |archive-url=https://web.archive.org/web/20170130104252/https://www.washingtonpost.com/news/animalia/wp/2016/10/20/her-head-has-been-torn-off-activists-film-alleges-abuse-at-costco-linked-cage-free-egg-farm/ |archive-date=January 30, 2017 |access-date=January 9, 2017 |newspaper=The Washington Post}} Costco denied the allegations, but the video sparked a discussion about animal welfare problems continuing to exist at cage-free egg farms. Writing in The Huffington Post, DxE co-founder Wayne Hsiung argued that the new investigation, rather than suggesting that Costco should keep birds in cages, indicated that hens should have the right not to be raised for food or kept on farms at all.{{cite news |last=Hsiung |first=Wayne |date=October 21, 2016 |title='They're Being Eaten Alive!' What I Saw In A Cage-Free Egg Farm |url=https://www.huffpost.com/entry/theyre-being-eaten-alive-what-i-saw-in-a-cage_b_580a5aefe4b0b1bd89fdb1d0 |url-status=live |archive-url=https://web.archive.org/web/20170110085733/http://www.huffingtonpost.com/entry/theyre-being-eaten-alive-what-i-saw-in-a-cage_us_580a5aefe4b0b1bd89fdb1d0 |archive-date=January 10, 2017 |access-date=January 9, 2017 |work=The Huffington Post}}

In September 2016, Costco self-disclosed conduct to the Office of Inspector General after its pharmacy in Waltham, Massachusetts improperly altered prescription drug claims to Medicare Part D and the Massachusetts Medicaid program that resulted in higher reimbursement than was appropriate. They paid a fine of US$340,157.25.{{Cite web |date=September 26, 2016 |title=Costco Agreed to Pay $340,000 for Allegedly Violating the Civil Monetary Penalties Law for Submitting Claims for Prescription Drugs that Were Not Provided as Claimed |url=https://oig.hhs.gov/fraud/enforcement/costco-agreed-to-pay-340000-for-allegedly-violating-the-civil-monetary-penalties-law-for-submitting-claims-for-prescription-drugs-that-were-not-provided-as-claimed/ |access-date=March 21, 2024 |website=Office of Inspector General {{!}} Government Oversight {{!}} U.S. Department of Health and Human Services |archive-date=March 21, 2024 |archive-url=https://web.archive.org/web/20240321130620/https://oig.hhs.gov/fraud/enforcement/costco-agreed-to-pay-340000-for-allegedly-violating-the-civil-monetary-penalties-law-for-submitting-claims-for-prescription-drugs-that-were-not-provided-as-claimed/ |url-status=live }}

In January 2017, Costco was brought to court in the US for lax pharmacy controls in violation of the Controlled Substances Act. Allegations such as Costco "filling prescriptions that were incomplete", or were for substances "beyond various doctors' scope of practice". The case was settled after Costco paid {{US$|11.75 million}}.{{Cite web |date=January 19, 2017 |title=Costco Wholesale to Pay $11.75 Million to Settle Allegations of Lax Pharmacy Controls |url=https://www.justice.gov/opa/pr/costco-wholesale-pay-1175-million-settle-allegations-lax-pharmacy-controls |access-date=May 3, 2022 |website=U.S. Department of Justice |archive-date=May 3, 2022 |archive-url=https://web.archive.org/web/20220503112105/https://www.justice.gov/opa/pr/costco-wholesale-pay-1175-million-settle-allegations-lax-pharmacy-controls |url-status=live }}

In 2017, Costco and Acushnet Holdings sued each other over their golf balls.{{Cite web |last=Picchi |first=Aimee |date=March 22, 2017 |title=Costco sues Titleist to fend off patent claims over its low-cost golf balls |url=https://www.cbsnews.com/news/costco-takes-a-swing-at-titleist-over-golf-balls/ |access-date=October 15, 2024 |website=CBS News }}{{Cite web |title=Ball Wars: Titleist's parent company countersues Costco for patent infringement, false advertising over its Kirkland ball |url=https://golf.com/gear/ball-wars-titleists-parent-company-countersues-costco-for-patent-infringement-false-advertising-over-its-kirkland-ball/ |access-date=October 15, 2024 |website=Golf }}

In August 2017, a federal judge ordered a "deceptive" Costco to pay Tiffany & Co. US$19.4{{nbsp}}million for misleading consumers into thinking they could buy legitimate Tiffany merchandise at warehouse club prices.{{cite news |last=Fickenscher |first=Lisa |date=August 14, 2017 |title=Costco ordered to pay $19.4M for misleading 'Tiffany' jewelry |url=https://nypost.com/2017/08/14/costco-ordered-to-pay-19-4m-for-misleading-tiffanys-jewelry/ |url-status=live |archive-url=https://web.archive.org/web/20170828211700/http://nypost.com/2017/08/14/costco-ordered-to-pay-19-4m-for-misleading-tiffanys-jewelry/ |archive-date=August 28, 2017 |access-date=August 28, 2017 |work=New York Post}}{{cite news |title=Judge: Costco must pay Tiffany $19.4 million for advertising knock-off rings |first=Kevin |last=McCoy |work=USA Today |url=https://www.usatoday.com/story/money/2017/08/15/judge-costco-must-pay-tiffany-19-4-million-advertising-knock-off-rings/568129001/ |date=August 15, 2017 |access-date=October 22, 2017 |archive-date=October 23, 2017 |archive-url=https://web.archive.org/web/20171023120250/https://www.usatoday.com/story/money/2017/08/15/judge-costco-must-pay-tiffany-19-4-million-advertising-knock-off-rings/568129001/ |url-status=live }}

Costco was criticized in 2019 by the Natural Resources Defense Council (NRDC) and SumOfUs for using virgin Canadian boreal forest to make its toilet paper. NRDC says that over the previous twenty years, 28 million acres of Canadian boreal forest had been cut down to make toilet paper.{{Cite web|url=https://www.nrdc.org/sites/default/files/issue-tissue-how-americans-are-flushing-forests-down-toilet-report.pdf|title=The issue with tissue: how Americans are flushing forests down the toilet|date=February 2019|website=Natural Resources Defense Council|access-date=February 25, 2020|archive-date=February 8, 2020|archive-url=https://web.archive.org/web/20200208161948/https://www.nrdc.org/sites/default/files/issue-tissue-how-americans-are-flushing-forests-down-toilet-report.pdf|url-status=live}}{{Cite web|url=https://actions.sumofus.org/a/costco-protect-the-boreal-forests-and-use-recycled-pulp-in-your-toilet-paper?source=campaigns|title=Costco: protect the boreal forests and use recycled pulp in your toilet paper|date=January 24, 2020|website=Sumofus|access-date=February 25, 2020|archive-date=July 28, 2020|archive-url=https://web.archive.org/web/20200728223734/https://actions.sumofus.org/a/costco-protect-the-boreal-forests-and-use-recycled-pulp-in-your-toilet-paper?source=campaigns|url-status=live}}

In 2019, the Ontario Ministry of Health fined Costco $CA7.2 million after it found that Costco pharmacies were accepting advertising services from a generic drug manufacturer in Ontario, where it is illegal for a pharmacy to accept rebates, or kickbacks, from a generic drug manufacturer in exchange for promising to stock its brand of drugs. Two Costco pharmacy directors were referred to the Ontario College of Pharmacists and were fined for the misconduct.{{Cite web |last=Rizza|first=Alanna|date=February 4, 2019 |title=Ontario government fines Costco $7M over illegal kickbacks - BNN Bloomberg |url=https://www.bnnbloomberg.ca/ontario-government-fines-costco-7m-over-illegal-kickbacks-1.1208765 |url-status=dead|access-date=March 21, 2024 |website=BNN Bloomberg|archive-url=https://web.archive.org/web/20190204211048/https://www.bnnbloomberg.ca/ontario-government-fines-costco-7m-over-illegal-kickbacks-1.1208765|archive-date=2019-02-04}}

In September 2020, CBS News reported that Costco has stopped selling Palmetto Cheese after the owner of the pimento cheese brand called Black Lives Matter a "terror organization." Costco posted a note to the item in their Myrtle Beach location indicating that the item will not be reordered, and over 120 Costco's throughout the US will no longer be carrying the item.{{Cite web |last=Gibson |first=Kate |date=September 23, 2020 |title=Costco reportedly drops Palmetto Cheese after owner calls BLM a "terror organization" |url=https://www.cbsnews.com/news/costco-pulls-palmetto-cheese-founder-calls-black-lives-matter-terror-organization/ |url-status=live |archive-url=https://web.archive.org/web/20210105050203/https://www.cbsnews.com/news/costco-pulls-palmetto-cheese-founder-calls-black-lives-matter-terror-organization/ |archive-date=January 5, 2021 |access-date=March 28, 2021 |website=CBS News}}

In October 2020, Costco dropped Chaokoh coconut milk over the allegations of forced monkey labor. PETA accused the manufacturer, Theppadungporn Coconut Co., of using forced monkey labor, finding cruelty to monkeys at their farms and facilities. Ken Kimble, Costco's Vice President of Corporate Food and Sundries, stated Costco has launched an investigation regarding the issue and have ceased purchasing from the supplier/owner of the brand Chaokoh condemning the use of monkey labor. Kimble also stated that Costco will continue to monitor the implementation of the harvest policies and once satisfied will resume purchasing.{{Cite web |author=Padgett |first=Lauren |date=October 31, 2020 |title=Costco drops Chaokoh coconut milk over allegations of forced monkey labor |url=https://www.cnn.com/2020/10/31/business/costco-coconut-milk-monkey-labor-trnd/index.html |url-status=live |archive-url=https://web.archive.org/web/20210417155108/https://www.cnn.com/2020/10/31/business/costco-coconut-milk-monkey-labor-trnd/index.html |archive-date=April 17, 2021 |access-date=March 28, 2021 |website=CNN }}

In December 2020, Costco announced plans to end the use of eggs from caged chickens throughout its operations worldwide.{{Cite news |last=McCarthy |first=Ryan |date=December 3, 2020 |title=Costco transitioning to cage-free eggs worldwide |url=https://www.meatpoultry.com/articles/24191-costco-transitioning-to-cage-free-eggs-worldwide |url-status=live |archive-url=https://web.archive.org/web/20210124150340/https://www.meatpoultry.com/articles/24191-costco-transitioning-to-cage-free-eggs-worldwide |archive-date=January 24, 2021 |access-date=December 31, 2020 |work=Meat + Poultry}} It became the first US retailer to issue a global policy on the confinement of animals in its supply chain.{{Cite news |last=McDonald |first=Amanda |date=December 8, 2020 |title=Costco is making this major change to its egg products |url=https://www.yahoo.com/amphtml/lifestyle/costco-making-major-change-egg-120913885.html |url-status=dead |archive-url=https://web.archive.org/web/20210124150309/https://www.yahoo.com/amphtml/lifestyle/costco-making-major-change-egg-120913885.html |archive-date=January 24, 2021 |access-date=December 31, 2020 |work=Yahoo Life}} Josh Dahmen, Costco financial planning and investor relations director also said: "We are in the process of making that transition to cage-free eggs. We will continue to increase the percentage over time, with a goal of eventually getting to 100%."{{Cite news |last=McDougal |first=Tony |date=December 9, 2020 |title=Costco to ban the use of cages in its global supply chain |url=https://www.poultryworld.net/Eggs/Articles/2020/12/Costco-to-ban-the-use-of-cages-in-its-global-supply-chain-682905E/ |url-status=live |archive-url=https://web.archive.org/web/20210124150334/https://www.poultryworld.net/Eggs/Articles/2020/12/Costco-to-ban-the-use-of-cages-in-its-global-supply-chain-682905E/ |archive-date=January 24, 2021 |access-date=December 31, 2020 |work=Poultry World}}

In 2023, the Kaohsiung Department of Health fined Costco numerous times for selling bags of mixed berries imported into Taiwan, that tested positive for Hepatitis A. Costco was fined a total of NT12.5 million and was temporarily barred from selling mixed berries in the country.{{Cite web |last=I-chia |first=Lee |date=June 1, 2023 |title=Kaohsiung fines Costco again over frozen berries |url=https://www.taipeitimes.com/News/taiwan/archives/2023/06/01/2003800803 |access-date=March 21, 2024 |website=Taipei Times |archive-date=March 21, 2024 |archive-url=https://web.archive.org/web/20240321130620/https://www.taipeitimes.com/News/taiwan/archives/2023/06/01/2003800803 |url-status=live }}{{Cite web |last=Kong |first=Dimsumdaily Hong |date=May 5, 2023 |title=Taiwan Costco fined NT$7.5 million (US$244,000) for selling hepatitis A-positive mixed berries |url=https://www.dimsumdaily.hk/taiwan-costco-fined-nt7-5-million-us244000-for-selling-hepatitis-a-positive-mixed-berries/ |access-date=March 21, 2024 |website=Dimsum Daily |archive-date=March 21, 2024 |archive-url=https://web.archive.org/web/20240321130621/https://www.dimsumdaily.hk/taiwan-costco-fined-nt7-5-million-us244000-for-selling-hepatitis-a-positive-mixed-berries/ |url-status=live }}

In June 2023, an employee named Kim Dong Ho in Hanam, Gyeonggi-do, South Korea who was assigned to organize shopping carts, died of heatstroke while at work. South Korean government guidelines state that outdoor workers be given a 10 to 15-minute break every hour during heatwave advisories; however, these guidelines were not strictly followed or enforced at the Costco store where Kim worked and he was given 15-minute breaks every 3 hours without a regular supply of drinking water.{{Cite web |last=이 |first=하린 |date=July 29, 2023 |title=사망 직원 장례식장서 "병 숨겼지?"…코스트코 대표, 유족에 '막말 논란' |url=https://www.mk.co.kr/news/society/10796230 |access-date=December 20, 2023 |website=매일경제 |language=ko |archive-date=December 20, 2023 |archive-url=https://web.archive.org/web/20231220121745/https://www.mk.co.kr/news/society/10796230 |url-status=live }}{{Cite news |last=So-yeon |first=Kim |date=June 29, 2023 |title=Costco worker dies due to excessive heat |url=https://koreaherald.com/view.php?ud=20230629000695 |access-date=July 29, 2023 |work=The Korea Herald |archive-date=July 29, 2023 |archive-url=https://web.archive.org/web/20230729181526/https://www.koreaherald.com/view.php?ud=20230629000695 |url-status=live }} The company was later fined 30 million won by the Ministry of Employment and Labor.{{Cite web |last=Byung-yeul |first=Baek |date=September 13, 2023 |title=Costco Korea fined $22,565 for safety violations in connection to worker's death |url=https://www.koreatimes.co.kr/www/tech/2024/03/419_359141.html |access-date=March 21, 2024 |website=Korea Times |archive-date=March 21, 2024 |archive-url=https://web.archive.org/web/20240321130620/https://www.koreatimes.co.kr/www/tech/2024/03/419_359141.html |url-status=live }}

In July 2023, Costco Australia paid $33,000 in penalties for mislabelling the origin of lobster products after importing lobsters from Canada, but labeling them as "Kirkland Signature PREVIOUSLY FROZEN WHOLE COOKED WA LOBSTER" and "Australian Lobster".{{Cite web |last=Commission |first=Australian Competition and Consumer |date=July 21, 2023 |title=Costco pays penalties for alleged misleading lobster country of origin claims |url=https://www.accc.gov.au/media-release/costco-pays-penalties-for-alleged-misleading-lobster-country-of-origin-claims |access-date=March 21, 2024 |website=www.accc.gov.au }}

In August 2023, the Environment Agency of Iceland fined Costco ISK 20 million for a diesel spill originating from a gas station in Garðabær, which contaminated the Hafnarfjörður sewage system.{{Cite web |last=Tómas |first=Ragnar |date=August 28, 2023 |title=Costco Fined ISK 20 Million for Gross Negligence Over Oil Spill |url=https://www.icelandreview.com/news/costco-fined-isk-20-million-for-gross-negligence-over-oil-spill/ |access-date=March 21, 2024 |website=Iceland Review |archive-date=March 21, 2024 |archive-url=https://web.archive.org/web/20240321130620/https://www.icelandreview.com/news/costco-fined-isk-20-million-for-gross-negligence-over-oil-spill/ |url-status=live }}

See also

References

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