Costco Wholesale

Corporate brand

Costco's operations in Canada. An American multinational operator of membership-only warehouse clubs offering curated merchandise, services, and private-label products at low markups.

Last updated October 18, 2026

Overview

Costco Wholesale is an American multinational retail corporation whose consumer-facing brand operates membership-only warehouse clubs, e-commerce sites, gasoline stations, pharmacies, optical departments, tire centers, food courts, hearing-aid operations, travel services, and business-oriented wholesale formats. Its central proposition is simple: members pay an annual fee for access to a curated selection of nationally branded and private-label merchandise sold at consistently low prices, frequently in large packs, cartons, or bulk quantities. The model combines high sales volumes, rapid inventory turnover, relatively low operating costs, limited product duplication, and a strong emphasis on renewal and member satisfaction. The Costco brand began operating in Seattle in 1983 under co-founders James Sinegal and Jeffrey Brotman. Its corporate lineage extends to Price Club, the membership warehouse business established by Sol Price and Robert Price in San Diego in 1976. Costco and Price Club merged their operations in 1993, initially creating PriceCostco. The combined company later returned to the Costco name, and former Price Club locations were progressively rebranded. This history gave Costco both an operating model and a management culture rooted in warehouse retail, employee promotion from within, disciplined merchandising, and close attention to store-level execution. Costco typically carries fewer active stock-keeping units in a warehouse than conventional broadline retailers. Rather than offering every variation of a product, it concentrates purchasing power on a smaller number of fast-selling models, sizes, colors, and pack configurations. Merchandise is often displayed in shipping cartons or directly on pallets, reducing handling and labor requirements. The assortment spans foods and sundries, fresh meat and produce, bakery and deli products, appliances, electronics, furniture, apparel, jewelry, sporting goods, health and beauty products, hardware, seasonal merchandise, tires, automotive goods, and household supplies. Ancillary services and businesses encourage more frequent visits and expand the relationship beyond merchandise purchases. Kirkland Signature, Costco's private-label brand, is a major part of the company's identity. Introduced in 1995 and named after the Washington city that previously housed Costco's headquarters, Kirkland Signature covers food, beverages, household products, clothing, personal care, appliances, and other categories. Costco positions the label as offering quality comparable to established brands at lower prices. Some products are co-branded or manufactured by established suppliers, helping Costco combine private-label economics with consumer trust. The membership system is the economic foundation of the brand. Gold Star memberships serve individual consumers, while Business memberships are designed for companies and other qualified business users. Executive members pay an additional fee and receive a 2% reward on qualifying purchases, subject to an annual maximum. Membership fees provide a recurring revenue stream and help support Costco's low-price positioning. The company has also expanded digital commerce, Costco Travel, delivery and installation capabilities, Costco Business Centers, and regional food-court menus adapted to local preferences. At August 31, 2025, Costco operated 914 warehouses and reported approximately 81.0 million paid memberships and 145.2 million total cardholders. Its 2025 workforce totaled approximately 341,000 employees worldwide. The business remained concentrated in North America but had substantial operations in Asia-Pacific and Europe. Costco's international strategy generally preserves the recognizable warehouse format while adapting food, merchandise, payment, and service offerings to local markets. As of 2026, the brand remained active and continued expanding its warehouse network, digital capabilities, membership proposition, and mixed-use real-est…

History

Costco's history combines two related strands of membership warehouse retail. The first was Price Club, founded in San Diego by Sol Price and his son Robert Price in 1976. Price had previously developed FedMart, an early membership-oriented discount retailer, but left after a change in ownership. Price Club opened its first location in a former aircraft hangar on Morena Boulevard. The warehouse sold merchandise in bulk to small businesses and other members, using annual fees, limited service, simple facilities, and low markups to create value. The original Morena Boulevard site later became part of Costco's warehouse network and is widely regarded as a surviving physical link to the company's predecessor. Price Club expanded during the 1980s, completed an initial public offering in 1980, and developed a growing network in the southwestern United States. It entered Canada in 1986 and later expanded into Mexico through a joint venture. Although the original business emphasized business members, the format gradually broadened toward household consumers. That shift increased the potential market for groceries, household goods, fresh foods, apparel, and other products that could be purchased in large quantities by families as well as by small enterprises. Costco itself was founded in Seattle by James Sinegal and Jeffrey Brotman. Sinegal had learned the warehouse and discount-retailing business through his work with Sol Price and FedMart, while Brotman came from a Seattle retail family and brought legal and distribution experience. The first Costco warehouse opened on September 15, 1983. The company initially pursued a deliberately low-markup strategy, with merchandise priced only modestly above wholesale cost. A second location opened in Portland, Oregon, in October 1983, followed by a Spokane location in December. Costco went public on Nasdaq in December 1985 with 17 warehouses and approximately 1,950 employees. In 1993, Costco and Price Club agreed to merge after Price Club rejected a proposed combination with Walmart's Sam's Club. The merger created PriceCostco, a business with more than 200 locations and universal memberships that could be used at both legacy chains. The Prices later departed and established PriceSmart, which remains a separate company. PriceCostco initially retained elements of both organizations, but Costco's operating culture and branding ultimately became dominant. In 1997, the company formally returned to the Costco name and stock symbol, and former Price Club warehouses were rebranded. The company moved its headquarters from Seattle to Kirkland in 1987 and then to Issaquah in 1996. The Kirkland name survived through the launch of Kirkland Signature in 1995. The private-label brand became one of Costco's most important merchandising tools, allowing the company to offer products positioned between generic goods and premium national brands. Costco used a mixture of direct sourcing, supplier partnerships, and occasional co-branding to support quality and value perceptions. During the 2000s and 2010s, Costco broadened its warehouse ecosystem. Gasoline stations, pharmacies, optical departments, tire centers, food courts, hearing-aid centers, fresh-food departments, travel services, and online commerce became important complements to the core warehouse business. The company also developed Costco Business Centers for business customers and expanded into additional international markets. Its stores generally maintained a recognizable format worldwide, while product selection, food-court menus, payment methods, and service offerings were adapted to local conditions. International expansion accelerated in Asia-Pacific and Europe. Costco entered mainland China through e-commerce on Alibaba's Tmall platform in 2014 and opened its first physical Chinese warehouse in Shanghai in 2019. The opening produced exceptional demand and temporary crowd-control problems. Costco subsequently continued developing its Chinese presence while competing with Sam's Club and digitally integrated Chinese retailers. The company opened its first New Zealand warehouse in West Auckland in 2022, extending its footprint to another English-speaking market. Leadership succession has generally emphasized internal promotion. James Sinegal served as president and chief executive officer from the company's 1983 founding until 2011. Craig Jelinek followed him as CEO and led the company through continued international, digital, and warehouse expansion. Ron Vachris, a longtime Costco and Price Club operations executive who began his career as a forklift driver, became president and CEO in January 2024. Richard Galanti, a central figure in Costco's financial management for decades, stepped down as chief financial officer in March 2024 and was succeeded by Gary Millerchip. Costco's recent history has focused on scaling while preserving its core economics. The company acquired Innovel Solutions in 2020 to improve last-mile delivery and installation. It invested in new headquarters facilities in Issaquah, strengthened online fulfillment, introduced greater membership verification at warehouse entrances, and raised U.S. membership fees in September 2024. It also began experimenting with mixed-use developments, including a South Los Angeles project that combines a Costco warehouse with approximately 800 apartments. By August 31, 2025, Costco operated 914 warehouses, had approximately 81 million paid memberships and 145.2 million total cardholders, and employed roughly 341,000 people worldwide.

2025
Costco operates 914 warehouses worldwide
[2]Costco Wholesale Corporation Fiscal 2025 Form 10-Ksec.gov
The fiscal 2025 annual report records 914 warehouses, approximately 81.0 million paid memberships, and 145.2 million total cardholders at August 31, 2025.
2024
Ron Vachris becomes CEO
[6]Costco Names Ron Vachris Chief Executive Officerinvestor.costco.com
Ron Vachris succeeds Craig Jelinek as president and chief executive officer on January 1, 2024.
2024
U.S. membership fees increase
[4]Costco Membership Fee Increasecustomerservice.costco.com
Gold Star and Business fees rise to $65, Executive fees rise to $130, and the Executive reward cap rises to $1,250.
2024
South Los Angeles mixed-use project breaks ground
[10]South Los Angeles Costco Mixed-Use Projectmayor.lacity.gov
Costco participates in a project combining a warehouse with approximately 800 mixed-income housing units.
2022
New Zealand entry
[9]Costco's Investment in New Zealandnzte.govt.nz
Costco opens its first New Zealand warehouse in West Auckland.
2020
Innovel acquisition strengthens logistics
[7]Costco Completes Innovel Acquisitioninvestor.costco.com
Costco completes the acquisition of Innovel Solutions to expand delivery and installation capabilities.
2020
Innovel acquisition completed
[7]Costco Completes Innovel Acquisitioninvestor.costco.com
Costco completed its acquisition of Innovel Solutions to strengthen last-mile logistics for bulky e-commerce merchandise.
2019
First mainland China warehouse opens
[8]Costco Opens First Mainland China Storexinhuanet.com
Costco opens its first physical warehouse in mainland China in Shanghai.
2014
Costco enters mainland China online
[1]Costcoen.wikipedia.org
Costco begins testing the Chinese market through an online store on Alibaba's Tmall platform.
1999
Adopts Costco Wholesale Corporation name
[17]Costco official websitecostco.com
The company adopted the Costco Wholesale Corporation name used today.

Showing the 10 most recent.

Products and positioning

A membership-based value retailer for households and small businesses, emphasizing bulk purchasing, curated assortment, low prices, private-label value, high inventory turnover, employee productivity, and efficient warehouse operations.

Retail format · 1983
Membership Warehouse Clubs
Costco's core offering is the membership warehouse: a large, low-frills retail facility where members purchase a tightly curated assortment of food, household goods, appliances, electronics, furniture, apparel, fresh foods, seasonal merchandise, and services. Products are frequently displayed on pallets or in shipping cartons, supporting rapid replenishment and lower handling costs. The format is designed for both household and small-business shopping and is available in broadly standardized layouts across international markets.
Private-label merchandise · 1995
Kirkland Signature
Kirkland Signature is Costco's principal private-label brand. It covers groceries, beverages, household paper products, cleaning supplies, clothing, personal care, supplements, pet products, appliances, luggage, and other merchandise. Costco uses the brand to offer products positioned as comparable in quality to national brands but sold at lower prices. Some Kirkland Signature goods are made in partnership with established manufacturers or are presented through selective co-branding. Costco’s proprietary private-label range covers groceries, beverages, household goods, apparel, personal care, pet products, and other categories. The line is central to Costco’s value proposition: products are developed or specified for the company and sold through its membership network, allowing Costco to combine quality control, purchasing scale, and competitive pricing. Kirkland Signature is presented as a broad alternative to national brands rather than as a single product line.
Membership program · 1991
Executive Membership
Executive Membership is Costco's premium membership tier. In the United States, members pay an additional annual fee and receive a 2% reward on qualifying Costco purchases, generally subject to a $1,250 annual maximum under the fee structure introduced in September 2024. The tier is intended to increase purchasing frequency and deepen member loyalty while providing a visible benefit to higher-spending households and businesses. Executive Membership is Costco’s higher-tier membership offering. It provides additional member benefits, including an annual reward on qualifying purchases subject to the program’s terms, and is intended for households and businesses whose spending can justify the higher fee. The tier increases the economic connection between membership renewal and shopping frequency.
Fuel retail
Costco Gasoline
Costco Gasoline operates fuel stations at or near many warehouses. Fuel is used as both a value-oriented standalone service and a traffic driver that encourages members to visit warehouses more frequently. The business is managed as an ancillary operation and its scale varies by country because of local regulations, real-estate constraints, and market conditions.
Business wholesale
Costco Business Center
Costco Business Centers are warehouse formats focused more heavily on restaurants, offices, convenience businesses, and other commercial customers. They emphasize food-service quantities, beverages, supplies, equipment, and business-use merchandise. Business Centers complement conventional warehouses by serving members with different purchasing patterns and delivery or pickup needs.
E-commerce
Costco.com and Digital Commerce
Costco's digital commerce operations extend the warehouse assortment and provide delivery, large-item logistics, installation, and online-only merchandise. E-commerce sites operate in selected countries, including the United States, Canada, Mexico, the United Kingdom, Korea, Taiwan, Japan, and Australia. Digital channels also support membership acquisition, renewal, travel bookings, product discovery, and digitally initiated sales fulfilled through warehouses or distribution facilities.
Travel services
Costco Travel
Costco Travel offers members vacation packages, cruises, rental cars, hotels, and related travel products through a member-oriented service model. It complements the merchandise business by giving Costco another high-value service category in which membership benefits, negotiated pricing, and rewards can influence purchasing decisions.
Retail services
Ancillary Warehouse Services
Costco operates or hosts a range of services adjacent to the warehouse experience, including pharmacies, optical departments, hearing-aid centers, tire installation, food courts, and selected delivery or installation services. These operations are designed to increase shopping frequency, improve member convenience, and make the annual membership more valuable beyond bulk merchandise purchasing.
Membership retail · 1983
Costco warehouses
The warehouse clubs are Costco’s core retail format. They use large, functional buildings, pallet-oriented merchandising, a limited assortment, and high-volume purchasing to reduce operating and selling costs. Members shop for everyday staples as well as rotating seasonal and discretionary products. Many locations include gasoline, pharmacies, optical departments, tire centers, hearing-aid services, food courts, and other member-oriented facilities.
E-commerce · 1998
Costco.com
Costco.com extends the warehouse assortment through online ordering and delivery. It is particularly useful for products that require a larger online selection or are difficult to carry home from a warehouse, including furniture, appliances, electronics, and other bulky goods. Costco has supplemented its digital commerce operation with logistics capabilities and member communications designed to connect online and warehouse shopping.
Member services
Costco Services
Costco Services encompasses offerings marketed through the Costco membership relationship, including travel, insurance-related products, auto programs, business delivery, and other services. Availability differs by market and product. These offerings broaden the brand beyond warehouse merchandise and give members additional reasons to use Costco as a purchasing platform.

Controversies

2026
Costco Canada recalls The Greek Gods yogurt over potential mould
Costco Canada recalled certain The Greek Gods Honey Yogurt and Organic Yogurt Plain products, sold in two 650-gram containers, due to potential mould. The affected products, recalled by Hain Celestial, the owner of The Greek Gods brand, may have been purchased at Costco warehouses or Costco Business Centres between June and August 2026. Costco urged consumers not to consume, serve, use, sell or distribute the affected yogurt and said the products are eligible for a full refund at any Costco warehouse.
Source
2019
Costco Canada recalls Kirkland Signature infant formula
Costco Wholesale Canada Ltd. recalled Kirkland Signature Non-GMO Infant Formula for Babies Sensitive to Lactose due to possible Cronobacter contamination. Consumers were advised to discard the product or return it to the place of purchase. No illnesses had been reported in connection with the product.
Source

2024Costco retail-media development
Primarily United States digital commerce
Costco began expanding its advertising and retail-media capabilities, using its membership and purchase data to help suppliers reach relevant shoppers on Costco’s digital properties and potentially beyond them. The initiative builds on existing website advertising and Costco Connection magazine placements.
Outcome. The effort created a new supplier-facing business while linking advertising measurement to merchandise sales and member shopping behavior.
Source
Treasure-Hunt Merchandising
Global
Costco's rotating assortment and limited availability of selected seasonal or opportunistic products create a recurring discovery-oriented shopping experience. The company has described this merchandising approach as a treasure-hunt atmosphere, encouraging members to visit frequently because an item seen during one trip may not be available later.
Outcome. The approach supports frequent warehouse visits, impulse purchases, and a perception that Costco offers distinctive deals in addition to routine household staples.
Source
Membership Value Proposition
Global
Costco promotes membership as access to consistently low prices, private-label value, warehouse services, gasoline, online shopping, travel, and a satisfaction-oriented return policy. The program is reinforced through Gold Star, Business, and Executive tiers.
Outcome. Membership fees provide recurring revenue and help finance the company's low-price operating model, while renewal rates serve as a central measure of member satisfaction and business health.
Source
Membership-led value marketing
Global · with market-specific execution
Costco makes membership itself the principal marketing mechanism. Annual access fees create exclusivity and recurring engagement, while low prices, curated merchandise, member guarantees, services, and warehouse discovery provide reasons to renew. The company supplements this model with direct mail, email, in-warehouse signage, product demonstrations, samples, digital communications, and word-of-mouth rather than relying primarily on large conventional advertising campaigns.
Outcome. The approach reinforces renewal and repeat visits while helping Costco direct more operating value toward merchandise prices and the member experience.
Source
Member deals and promotional communications
United States and other Costco markets
Costco communicates member-only offers, limited-time discounts, new product arrivals, and seasonal promotions through email, direct mail, social channels, digital properties, and warehouse signage. The communications are tied to the membership relationship and are intended to turn the limited and changing assortment into a reason for frequent visits.
Outcome. The program supports customer engagement and product discovery without changing Costco’s low-advertising operating posture.
Source
Warehouse sampling and discovery experience
Costco warehouse markets
In-warehouse product samples, demonstrations, rotating merchandise, low-priced food-court offerings, and gasoline discounts function as recurring promotional features. They encourage members to spend more time in the warehouse and try products they may not have planned to buy.
Outcome. These features strengthen the experiential and discovery-oriented character of the warehouse club.
Source

Brand decisions

2025
Challenge IEEPA tariffs in federal courtOther
Background
Costco argued that tariffs imposed under the International Emergency Economic Powers Act affected goods imported into the United States and could create uncertainty over recovery of duties if the measures were later invalidated.
Action taken
Costco filed a lawsuit in the United States Court of International Trade seeking a declaration that the challenged tariff measures were unlawful and requesting protection of its ability to obtain refunds.
Aftermath
The case was placed among related tariff litigation and later stayed while broader judicial proceedings concerning the IEEPA tariffs continued.
Source
2024
Raise U.S. membership feesPrice change
Background
Costco periodically adjusts membership fees to support operating costs while maintaining its low-price merchandise strategy.
Action taken
Effective September 1, 2024, Gold Star and Business memberships rose from $60 to $65, Executive memberships rose from $120 to $130, and the Executive reward cap rose from $1,000 to $1,250.
Aftermath
The change increased the price of access while preserving the Executive tier's 2% reward structure and strengthening the recurring-revenue contribution of the membership model.
U.S. annual membership fee. $60 Gold Star and Business; $120 Executive → $65 Gold Star and Business; $130 Executive (Effective September 1, 2024)
Source
2024
Develop Costco-inclusive mixed-use real estateStrategy
Background
High land costs, housing demand, and urban development constraints created an opportunity to combine warehouse retail with residential construction.
Action taken
Costco participated in a South Los Angeles project combining a warehouse with approximately 800 apartments, including low-income and workforce housing.
Aftermath
The project established a new format for Costco's U.S. real-estate strategy and demonstrated how a warehouse could be integrated into a dense mixed-use development.
Source
2024
Expand retail-media capabilitiesStrategy
Background
Costco’s membership cards and digital accounts create purchase data that can help suppliers target shoppers and evaluate whether advertising is associated with product sales.
Action taken
The company developed a broader retail-media operation, including targeted advertising tests and supplier-facing digital placements.
Aftermath
Retail media became an additional merchandising and potential revenue capability, with Costco emphasizing product relevance and merchandise movement rather than advertising monetization alone.
Source
2020
Acquire Innovel SolutionsM&A
Background
Growing online sales and demand for appliances and other large merchandise increased the importance of reliable last-mile delivery, installation, and logistics coordination. Costco needed additional logistics capacity to support growing e-commerce sales, especially for furniture, appliances, and other large or bulky products.
Action taken
Costco completed the acquisition of Innovel Solutions, a third-party end-to-end logistics provider, using existing cash resources.
Aftermath
The acquisition expanded Costco's internal logistics capabilities and supported the company's e-commerce and large-item delivery operations. Innovel continued serving Sears and other third-party customers while becoming part of Costco’s effort to expand last-mile e-commerce capabilities.
Purchase price. $1 billion (Announced March 17, 2020)
Source
2019
Open first mainland China warehouseStrategy
Background
Following an online market test, Costco pursued a physical presence in one of China's largest urban consumer markets.
Action taken
Costco opened a warehouse in Shanghai's Minhang District on August 27, 2019.
Aftermath
Opening-day demand exceeded the store's immediate capacity, leading to a temporary suspension of operations that afternoon. The opening demonstrated strong initial consumer interest but also highlighted the operational challenge of adapting the warehouse model to China's competitive and digitally integrated retail environment.
- Sam's Club — Sam's Club was identified as an established warehouse-club competitor in the Chinese market.
Source
2014
Enter mainland China through e-commerceStrategy
Background
Costco wanted to test demand in China without immediately committing to a large physical warehouse network.
Action taken
The company launched an online presence on Alibaba's Tmall platform.
Aftermath
The online entry preceded the opening of Costco's first mainland Chinese warehouse in Shanghai in 2019.
Source
1995
Launch Kirkland Signature private labelProduct launch
Background
Costco sought to improve value perception, differentiate its assortment, and capture more control over product quality and pricing.
Action taken
The company introduced Kirkland Signature across a widening range of merchandise categories.
Aftermath
Kirkland Signature became a defining part of Costco's merchandising strategy and one of the company's most recognizable consumer brands.
Source
1993
Merge operations with Price ClubM&A
Background
Costco and Price Club operated similar membership warehouse businesses and faced a strategic choice between combining with each other or pursuing other merger opportunities.
Action taken
The companies merged their operations to form PriceCostco and made memberships interoperable across the legacy chains.
Aftermath
The merger created the corporate scale and warehouse network from which the modern Costco brand developed. The company later restored the Costco name and rebranded the remaining Price Club locations.
Source
1993
Merge with The Price CompanyM&A
Background
Costco and The Price Company operated closely related warehouse-club businesses and could gain purchasing scale and geographic reach by combining.
Action taken
The companies completed a merger that created PriceCostco and united the Costco and Price Club operations under a new corporate structure.
Aftermath
The transaction became the defining corporate link between the Costco and Price Club traditions. The company later separated certain Price-related operations and changed its corporate name.
Source

Recent events

2025
Costco files suit seeking refunds for IEEPA tariffs[11]Costco Wholesale Corporation v. United Statesdockets.justia.com
Lawsuit · Regulation · Pricing
Costco filed an action in the United States Court of International Trade seeking to preserve its ability to recover tariffs imposed under the International Emergency Economic Powers Act and asking the court to declare the challenged tariff measures unlawful.
2025
Costco continues Japanese warehouse expansion[23]好市多继续在日本扩张仓储门店costco.co.jp
Other
Costco Japan has continued to add warehouse locations across Japan, using suburban and regional sites to extend the membership warehouse-club format.
2025
Costco promotes Costco Velocity retail-media products[24]Costco推广Costco Velocity零售媒体产品emarketer.com
Product launch
Costco’s retail-media business, branded Costco Velocity, partnered with Moloco on an onsite Reserved Display product designed to present sponsored products in high-traffic digital placements.
2024
Costco appoints Ron Vachris as chief executive officer[6]Costco Names Ron Vachris Chief Executive Officerinvestor.costco.com
Leadership change
Ron Vachris became president and chief executive officer on January 1, 2024, succeeding Craig Jelinek. The succession continued Costco's tradition of promoting long-serving internal executives, as Vachris had worked in warehouse operations, real estate, merchandising, and senior management.
2024
Gary Millerchip succeeds Richard Galanti as chief financial officer[5]Costco Names Gary Millerchip Chief Financial Officerinvestor.costco.com
Leadership change
Costco named Gary Millerchip executive vice president and chief financial officer effective March 15, 2024. Richard Galanti remained with the company in an advisory capacity during the transition and continued on the board.
2024
Costco raises U.S. membership fees[4]Costco Membership Fee Increasecustomerservice.costco.com
Pricing
Beginning September 1, 2024, U.S. Gold Star and Business memberships increased from $60 to $65 annually, while Executive memberships increased from $120 to $130. The maximum annual Executive 2% reward increased from $1,000 to $1,250.
2024
Costco begins South Los Angeles mixed-use warehouse and housing project[10]South Los Angeles Costco Mixed-Use Projectmayor.lacity.gov
Other
Costco participated in the groundbreaking of a South Los Angeles project combining a warehouse with approximately 800 apartments, including affordable and workforce housing. The development represents an expansion of the company's real-estate approach beyond standalone retail sites.
2024
Costco disclosed a membership-fee increase for the United States and Canada[25]好市多披露美国和加拿大会员费上调计划investor.costco.com
Pricing
Costco announced that annual membership fees in the United States and Canada would increase later in 2024, with changes affecting both Gold Star and Executive members.
2024
Costco develops a retail-media advertising business[14]Costco is building out an ad business using shoppers’ datamarketingbrew.com
Other
Reports described Costco’s effort to build targeted advertising capabilities using membership and purchase data, extending existing website and magazine advertising into a broader retail-media offering.
2023
Costco announced a transition to Ron Vachris as chief executive officer[26]好市多宣布由Ron Vachris接任首席执行官investor.costco.com
Leadership change
Costco announced that Ron Vachris would succeed Craig Jelinek as chief executive officer, effective January 1, 2024. Vachris had held senior operating and merchandising roles at the company.

Showing the 10 most recent.

Sources34 sources

Cite this profile: Cite the canonical profile. /brand-wiki/costco-wholesale · Editorial policy · How profiles are compiled

Overview

History

2025
Costco operates 914 warehouses worldwide
[2]Costco Wholesale Corporation Fiscal 2025 Form 10-Ksec.gov
The fiscal 2025 annual report records 914 warehouses, approximately 81.0 million paid memberships, and 145.2 million total cardholders at August 31, 2025.
2024
Ron Vachris becomes CEO
[6]Costco Names Ron Vachris Chief Executive Officerinvestor.costco.com
Ron Vachris succeeds Craig Jelinek as president and chief executive officer on January 1, 2024.
2024
U.S. membership fees increase
[4]Costco Membership Fee Increasecustomerservice.costco.com
Gold Star and Business fees rise to $65, Executive fees rise to $130, and the Executive reward cap rises to $1,250.
2024
South Los Angeles mixed-use project breaks ground
[10]South Los Angeles Costco Mixed-Use Projectmayor.lacity.gov
Costco participates in a project combining a warehouse with approximately 800 mixed-income housing units.
2022
New Zealand entry
[9]Costco's Investment in New Zealandnzte.govt.nz
Costco opens its first New Zealand warehouse in West Auckland.
2020
Innovel acquisition strengthens logistics
[7]Costco Completes Innovel Acquisitioninvestor.costco.com
Costco completes the acquisition of Innovel Solutions to expand delivery and installation capabilities.
2020
Innovel acquisition completed
[7]Costco Completes Innovel Acquisitioninvestor.costco.com
Costco completed its acquisition of Innovel Solutions to strengthen last-mile logistics for bulky e-commerce merchandise.
2019
First mainland China warehouse opens
[8]Costco Opens First Mainland China Storexinhuanet.com
Costco opens its first physical warehouse in mainland China in Shanghai.
2014
Costco enters mainland China online
[1]Costcoen.wikipedia.org
Costco begins testing the Chinese market through an online store on Alibaba's Tmall platform.
1999
Adopts Costco Wholesale Corporation name
[17]Costco official websitecostco.com
The company adopted the Costco Wholesale Corporation name used today.

Showing the 10 most recent.

Products and positioning

Retail format · 1983
Membership Warehouse Clubs
Costco's core offering is the membership warehouse: a large, low-frills retail facility where members purchase a tightly curated assortment of food, household goods, appliances, electronics, furniture, apparel, fresh foods, seasonal merchandise, and services. Products are frequently displayed on pallets or in shipping cartons, supporting rapid replenishment and lower handling costs. The format is designed for both household and small-business shopping and is available in broadly standardized layouts across international markets.
Private-label merchandise · 1995
Kirkland Signature
Kirkland Signature is Costco's principal private-label brand. It covers groceries, beverages, household paper products, cleaning supplies, clothing, personal care, supplements, pet products, appliances, luggage, and other merchandise. Costco uses the brand to offer products positioned as comparable in quality to national brands but sold at lower prices. Some Kirkland Signature goods are made in partnership with established manufacturers or are presented through selective co-branding. Costco’s proprietary private-label range covers groceries, beverages, household goods, apparel, personal care, pet products, and other categories. The line is central to Costco’s value proposition: products are developed or specified for the company and sold through its membership network, allowing Costco to combine quality control, purchasing scale, and competitive pricing. Kirkland Signature is presented as a broad alternative to national brands rather than as a single product line.
Membership program · 1991
Executive Membership
Executive Membership is Costco's premium membership tier. In the United States, members pay an additional annual fee and receive a 2% reward on qualifying Costco purchases, generally subject to a $1,250 annual maximum under the fee structure introduced in September 2024. The tier is intended to increase purchasing frequency and deepen member loyalty while providing a visible benefit to higher-spending households and businesses. Executive Membership is Costco’s higher-tier membership offering. It provides additional member benefits, including an annual reward on qualifying purchases subject to the program’s terms, and is intended for households and businesses whose spending can justify the higher fee. The tier increases the economic connection between membership renewal and shopping frequency.
Fuel retail
Costco Gasoline
Costco Gasoline operates fuel stations at or near many warehouses. Fuel is used as both a value-oriented standalone service and a traffic driver that encourages members to visit warehouses more frequently. The business is managed as an ancillary operation and its scale varies by country because of local regulations, real-estate constraints, and market conditions.
Business wholesale
Costco Business Center
Costco Business Centers are warehouse formats focused more heavily on restaurants, offices, convenience businesses, and other commercial customers. They emphasize food-service quantities, beverages, supplies, equipment, and business-use merchandise. Business Centers complement conventional warehouses by serving members with different purchasing patterns and delivery or pickup needs.
E-commerce
Costco.com and Digital Commerce
Costco's digital commerce operations extend the warehouse assortment and provide delivery, large-item logistics, installation, and online-only merchandise. E-commerce sites operate in selected countries, including the United States, Canada, Mexico, the United Kingdom, Korea, Taiwan, Japan, and Australia. Digital channels also support membership acquisition, renewal, travel bookings, product discovery, and digitally initiated sales fulfilled through warehouses or distribution facilities.
Travel services
Costco Travel
Costco Travel offers members vacation packages, cruises, rental cars, hotels, and related travel products through a member-oriented service model. It complements the merchandise business by giving Costco another high-value service category in which membership benefits, negotiated pricing, and rewards can influence purchasing decisions.
Retail services
Ancillary Warehouse Services
Costco operates or hosts a range of services adjacent to the warehouse experience, including pharmacies, optical departments, hearing-aid centers, tire installation, food courts, and selected delivery or installation services. These operations are designed to increase shopping frequency, improve member convenience, and make the annual membership more valuable beyond bulk merchandise purchasing.
Membership retail · 1983
Costco warehouses
The warehouse clubs are Costco’s core retail format. They use large, functional buildings, pallet-oriented merchandising, a limited assortment, and high-volume purchasing to reduce operating and selling costs. Members shop for everyday staples as well as rotating seasonal and discretionary products. Many locations include gasoline, pharmacies, optical departments, tire centers, hearing-aid services, food courts, and other member-oriented facilities.
E-commerce · 1998
Costco.com
Costco.com extends the warehouse assortment through online ordering and delivery. It is particularly useful for products that require a larger online selection or are difficult to carry home from a warehouse, including furniture, appliances, electronics, and other bulky goods. Costco has supplemented its digital commerce operation with logistics capabilities and member communications designed to connect online and warehouse shopping.
Member services
Costco Services
Costco Services encompasses offerings marketed through the Costco membership relationship, including travel, insurance-related products, auto programs, business delivery, and other services. Availability differs by market and product. These offerings broaden the brand beyond warehouse merchandise and give members additional reasons to use Costco as a purchasing platform.

Controversies

2026
Costco Canada recalls The Greek Gods yogurt over potential mould
Costco Canada recalled certain The Greek Gods Honey Yogurt and Organic Yogurt Plain products, sold in two 650-gram containers, due to potential mould. The affected products, recalled by Hain Celestial, the owner of The Greek Gods brand, may have been purchased at Costco warehouses or Costco Business Centres between June and August 2026. Costco urged consumers not to consume, serve, use, sell or distribute the affected yogurt and said the products are eligible for a full refund at any Costco warehouse.
Source
2019
Costco Canada recalls Kirkland Signature infant formula
Costco Wholesale Canada Ltd. recalled Kirkland Signature Non-GMO Infant Formula for Babies Sensitive to Lactose due to possible Cronobacter contamination. Consumers were advised to discard the product or return it to the place of purchase. No illnesses had been reported in connection with the product.
Source

Marketing campaigns

2024Costco retail-media development
Primarily United States digital commerce
Costco began expanding its advertising and retail-media capabilities, using its membership and purchase data to help suppliers reach relevant shoppers on Costco’s digital properties and potentially beyond them. The initiative builds on existing website advertising and Costco Connection magazine placements.
Outcome. The effort created a new supplier-facing business while linking advertising measurement to merchandise sales and member shopping behavior.
Source
Treasure-Hunt Merchandising
Global
Costco's rotating assortment and limited availability of selected seasonal or opportunistic products create a recurring discovery-oriented shopping experience. The company has described this merchandising approach as a treasure-hunt atmosphere, encouraging members to visit frequently because an item seen during one trip may not be available later.
Outcome. The approach supports frequent warehouse visits, impulse purchases, and a perception that Costco offers distinctive deals in addition to routine household staples.
Source
Membership Value Proposition
Global
Costco promotes membership as access to consistently low prices, private-label value, warehouse services, gasoline, online shopping, travel, and a satisfaction-oriented return policy. The program is reinforced through Gold Star, Business, and Executive tiers.
Outcome. Membership fees provide recurring revenue and help finance the company's low-price operating model, while renewal rates serve as a central measure of member satisfaction and business health.
Source
Membership-led value marketing
Global · with market-specific execution
Costco makes membership itself the principal marketing mechanism. Annual access fees create exclusivity and recurring engagement, while low prices, curated merchandise, member guarantees, services, and warehouse discovery provide reasons to renew. The company supplements this model with direct mail, email, in-warehouse signage, product demonstrations, samples, digital communications, and word-of-mouth rather than relying primarily on large conventional advertising campaigns.
Outcome. The approach reinforces renewal and repeat visits while helping Costco direct more operating value toward merchandise prices and the member experience.
Source
Member deals and promotional communications
United States and other Costco markets
Costco communicates member-only offers, limited-time discounts, new product arrivals, and seasonal promotions through email, direct mail, social channels, digital properties, and warehouse signage. The communications are tied to the membership relationship and are intended to turn the limited and changing assortment into a reason for frequent visits.
Outcome. The program supports customer engagement and product discovery without changing Costco’s low-advertising operating posture.
Source
Warehouse sampling and discovery experience
Costco warehouse markets
In-warehouse product samples, demonstrations, rotating merchandise, low-priced food-court offerings, and gasoline discounts function as recurring promotional features. They encourage members to spend more time in the warehouse and try products they may not have planned to buy.
Outcome. These features strengthen the experiential and discovery-oriented character of the warehouse club.
Source

Brand decisions

2025
Challenge IEEPA tariffs in federal courtOther
Background
Costco argued that tariffs imposed under the International Emergency Economic Powers Act affected goods imported into the United States and could create uncertainty over recovery of duties if the measures were later invalidated.
Action taken
Costco filed a lawsuit in the United States Court of International Trade seeking a declaration that the challenged tariff measures were unlawful and requesting protection of its ability to obtain refunds.
Aftermath
The case was placed among related tariff litigation and later stayed while broader judicial proceedings concerning the IEEPA tariffs continued.
Source
2024
Raise U.S. membership feesPrice change
Background
Costco periodically adjusts membership fees to support operating costs while maintaining its low-price merchandise strategy.
Action taken
Effective September 1, 2024, Gold Star and Business memberships rose from $60 to $65, Executive memberships rose from $120 to $130, and the Executive reward cap rose from $1,000 to $1,250.
Aftermath
The change increased the price of access while preserving the Executive tier's 2% reward structure and strengthening the recurring-revenue contribution of the membership model.
U.S. annual membership fee. $60 Gold Star and Business; $120 Executive → $65 Gold Star and Business; $130 Executive (Effective September 1, 2024)
Source
2024
Develop Costco-inclusive mixed-use real estateStrategy
Background
High land costs, housing demand, and urban development constraints created an opportunity to combine warehouse retail with residential construction.
Action taken
Costco participated in a South Los Angeles project combining a warehouse with approximately 800 apartments, including low-income and workforce housing.
Aftermath
The project established a new format for Costco's U.S. real-estate strategy and demonstrated how a warehouse could be integrated into a dense mixed-use development.
Source
2024
Expand retail-media capabilitiesStrategy
Background
Costco’s membership cards and digital accounts create purchase data that can help suppliers target shoppers and evaluate whether advertising is associated with product sales.
Action taken
The company developed a broader retail-media operation, including targeted advertising tests and supplier-facing digital placements.
Aftermath
Retail media became an additional merchandising and potential revenue capability, with Costco emphasizing product relevance and merchandise movement rather than advertising monetization alone.
Source
2020
Acquire Innovel SolutionsM&A
Background
Growing online sales and demand for appliances and other large merchandise increased the importance of reliable last-mile delivery, installation, and logistics coordination. Costco needed additional logistics capacity to support growing e-commerce sales, especially for furniture, appliances, and other large or bulky products.
Action taken
Costco completed the acquisition of Innovel Solutions, a third-party end-to-end logistics provider, using existing cash resources.
Aftermath
The acquisition expanded Costco's internal logistics capabilities and supported the company's e-commerce and large-item delivery operations. Innovel continued serving Sears and other third-party customers while becoming part of Costco’s effort to expand last-mile e-commerce capabilities.
Purchase price. $1 billion (Announced March 17, 2020)
Source
2019
Open first mainland China warehouseStrategy
Background
Following an online market test, Costco pursued a physical presence in one of China's largest urban consumer markets.
Action taken
Costco opened a warehouse in Shanghai's Minhang District on August 27, 2019.
Aftermath
Opening-day demand exceeded the store's immediate capacity, leading to a temporary suspension of operations that afternoon. The opening demonstrated strong initial consumer interest but also highlighted the operational challenge of adapting the warehouse model to China's competitive and digitally integrated retail environment.
- Sam's Club — Sam's Club was identified as an established warehouse-club competitor in the Chinese market.
Source
2014
Enter mainland China through e-commerceStrategy
Background
Costco wanted to test demand in China without immediately committing to a large physical warehouse network.
Action taken
The company launched an online presence on Alibaba's Tmall platform.
Aftermath
The online entry preceded the opening of Costco's first mainland Chinese warehouse in Shanghai in 2019.
Source
1995
Launch Kirkland Signature private labelProduct launch
Background
Costco sought to improve value perception, differentiate its assortment, and capture more control over product quality and pricing.
Action taken
The company introduced Kirkland Signature across a widening range of merchandise categories.
Aftermath
Kirkland Signature became a defining part of Costco's merchandising strategy and one of the company's most recognizable consumer brands.
Source
1993
Merge operations with Price ClubM&A
Background
Costco and Price Club operated similar membership warehouse businesses and faced a strategic choice between combining with each other or pursuing other merger opportunities.
Action taken
The companies merged their operations to form PriceCostco and made memberships interoperable across the legacy chains.
Aftermath
The merger created the corporate scale and warehouse network from which the modern Costco brand developed. The company later restored the Costco name and rebranded the remaining Price Club locations.
Source
1993
Merge with The Price CompanyM&A
Background
Costco and The Price Company operated closely related warehouse-club businesses and could gain purchasing scale and geographic reach by combining.
Action taken
The companies completed a merger that created PriceCostco and united the Costco and Price Club operations under a new corporate structure.
Aftermath
The transaction became the defining corporate link between the Costco and Price Club traditions. The company later separated certain Price-related operations and changed its corporate name.
Source

Recent events

2025
Costco files suit seeking refunds for IEEPA tariffs[11]Costco Wholesale Corporation v. United Statesdockets.justia.com
Lawsuit · Regulation · Pricing
Costco filed an action in the United States Court of International Trade seeking to preserve its ability to recover tariffs imposed under the International Emergency Economic Powers Act and asking the court to declare the challenged tariff measures unlawful.
2025
Costco continues Japanese warehouse expansion[23]好市多继续在日本扩张仓储门店costco.co.jp
Other
Costco Japan has continued to add warehouse locations across Japan, using suburban and regional sites to extend the membership warehouse-club format.
2025
Costco promotes Costco Velocity retail-media products[24]Costco推广Costco Velocity零售媒体产品emarketer.com
Product launch
Costco’s retail-media business, branded Costco Velocity, partnered with Moloco on an onsite Reserved Display product designed to present sponsored products in high-traffic digital placements.
2024
Costco appoints Ron Vachris as chief executive officer[6]Costco Names Ron Vachris Chief Executive Officerinvestor.costco.com
Leadership change
Ron Vachris became president and chief executive officer on January 1, 2024, succeeding Craig Jelinek. The succession continued Costco's tradition of promoting long-serving internal executives, as Vachris had worked in warehouse operations, real estate, merchandising, and senior management.
2024
Gary Millerchip succeeds Richard Galanti as chief financial officer[5]Costco Names Gary Millerchip Chief Financial Officerinvestor.costco.com
Leadership change
Costco named Gary Millerchip executive vice president and chief financial officer effective March 15, 2024. Richard Galanti remained with the company in an advisory capacity during the transition and continued on the board.
2024
Costco raises U.S. membership fees[4]Costco Membership Fee Increasecustomerservice.costco.com
Pricing
Beginning September 1, 2024, U.S. Gold Star and Business memberships increased from $60 to $65 annually, while Executive memberships increased from $120 to $130. The maximum annual Executive 2% reward increased from $1,000 to $1,250.
2024
Costco begins South Los Angeles mixed-use warehouse and housing project[10]South Los Angeles Costco Mixed-Use Projectmayor.lacity.gov
Other
Costco participated in the groundbreaking of a South Los Angeles project combining a warehouse with approximately 800 apartments, including affordable and workforce housing. The development represents an expansion of the company's real-estate approach beyond standalone retail sites.
2024
Costco disclosed a membership-fee increase for the United States and Canada[25]好市多披露美国和加拿大会员费上调计划investor.costco.com
Pricing
Costco announced that annual membership fees in the United States and Canada would increase later in 2024, with changes affecting both Gold Star and Executive members.
2024
Costco develops a retail-media advertising business[14]Costco is building out an ad business using shoppers’ datamarketingbrew.com
Other
Reports described Costco’s effort to build targeted advertising capabilities using membership and purchase data, extending existing website and magazine advertising into a broader retail-media offering.
2023
Costco announced a transition to Ron Vachris as chief executive officer[26]好市多宣布由Ron Vachris接任首席执行官investor.costco.com
Leadership change
Costco announced that Ron Vachris would succeed Craig Jelinek as chief executive officer, effective January 1, 2024. Vachris had held senior operating and merchandising roles at the company.

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Overview

History

Products and positioning

Controversies

Marketing campaigns

Brand decisions

Recent events

Related entries

Sources34 sources

Overview

History

Products and positioning

Controversies

Marketing campaigns

Brand decisions

Recent events

Related entries

Sources34 sources