COSTCO WHOLESALE CORP /NEW (COST)

Costco Wholesale Corporation began operations in 1983 in Seattle, Washington, and is principally engaged in operating membership warehouses. At August 30, 2026 it operated 939 warehouses in the U.S. and Puerto Rico, Canada, Mexico, Japan, the U.K., Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland, and New Zealand, along with e-commerce sites in nine countries. Its model is to offer low prices on a limited selection of nationally branded and private-label products. The aim is high sales volumes and rapid inventory turnover, which let it operate profitably at significantly lower gross margins than most other retailers. Its stock trades on the NASDAQ Global Select Market under the symbol "COST."

The company sells merchandise and services in three groups. Core merchandise covers Foods and Sundries, Non-Foods, and Fresh Foods. Warehouse Ancillary covers gasoline, pharmacy, food court, optical, hearing aids, and tire installation. Other businesses include e-commerce, business centers, and Costco Travel. Each warehouse carries fewer than 4,000 active SKUs, and online offerings average 9,000 to 11,000 SKUs. The private-label brand Kirkland Signature is a key part of the offering. The company operated 774 gas stations, and gasoline was 11% of total net sales in 2026. Digitally-enabled sales and Costco Travel together were 11% of net sales. Segments are the United States, Canada, and Other International.

Costco sells to members, who may use their memberships at all warehouses and e-commerce sites. The annual fee is $65 in the U.S. Paid members can upgrade to Executive membership, which generally earns a 2% reward on qualified purchases. Executive members accounted for about 75.2% of worldwide net sales in 2026. The renewal rate was 92.3% in the U.S. and Canada and 89.8% worldwide. Business centers serve food service, convenience store, and office customers. Sales are seasonally higher during the winter holiday season. The company employed about 355,000 people at the end of 2026, roughly 95% of them in warehouses and distribution, and about 5% are represented by unions.

Costco buys most merchandise directly from suppliers and routes it through cross-docking depots or directly to warehouses. E-commerce orders ship through depots and logistics operations, as well as through supplier drop-ship arrangements. No single supplier provides a significant portion of merchandise. The company also buys and manufactures private-label goods, and it is diversifying its supply chain and expanding in-country production. The average warehouse is about 148,000 square feet and is a no-frills, self-service facility. Competitors include Walmart, Target, Kroger, and Amazon, as well as other warehouse clubs such as Sam's Club and BJ's Wholesale Club. The company is headquartered at 999 Lake Drive, Issaquah, Washington.