🏢 Costco Wholesale Corporation – Company Overview
🏢 Costco Wholesale Corporation – Company Overview1. IntroductionCostco Wholesale Corporation is one of the world’s largest retail chains, operating a membership-only warehouse club model. Known for offering products in bulk at low prices, Costco has become a leader in the wholesale retail market.2. Founding and HistoryFounded: July 12, 1976 (as Price Club); merged and rebranded to Costco in 1983Founders:James (Jim) SinegalJeffrey H. BrotmanFirst Warehouse Location: Seattle, Washington (1983)The company originated from Price Club, started in San Diego by Sol Price. In 1993, Price Club merged with Costco, and in 1997, the combined company was renamed Costco Wholesale Corporation.3. HeadquartersLocation: Issaquah, Washington, United States4. Business ModelCostco operates on a membership-based model. Customers pay an annual fee to access the stores and receive wholesale pricing.Key features:Bulk sales at discounted pricesLow operating margins, high sales volumeLimited product selection (about 3,700 SKUs)Focus on private label brand: Kirkland Signature5. Products and ServicesCostco sells:GroceriesElectronicsClothingHome goodsFurniturePharmacyOptical and hearing aidsGasolineTravel and insurance services6. Revenue and Financial PerformanceRevenue (FY2024): Over $240 billionNet Income: Over $6 billionEmployees: Over 300,000Costco consistently ranks among the top Fortune 100 companies.7. Global PresenceCostco operates over 870 warehouse stores in multiple countries:USACanadaMexicoUKJapanSouth KoreaTaiwanAustraliaSpainChina (entered in 2019)8. Key StrengthsStrong brand loyaltyEfficient supply chainLow overhead costsHigh member retention (over 90%)9. ChallengesDependence on membership renewalsIntense competition (Walmart/Sam’s Club, Amazon)Inflationary pressuresLimited online presence compared to competitors10. Future OutlookExpansion in Asia and EuropeGrowing focus on e-commerceContinued investment in Kirkland Signature brandSustainability and environmental initiatives in supply chain11. LeadershipChairman: Hamilton E. JamesCEO (as of 2024): W. Craig Jelinek (retiring in 2024, to be succeeded by Ron Vachris)g
