Costco Wholesale(NASDAQ) COST

Costco Wholesale Corporation sells bulk goods at low prices. Members pay annual fees to shop at these large warehouses. The business relies on high volumes and fast inventory turnover.

What Is Inside the Warehouse?

• Core Merchandise: Household staples, consumer electronics, and shelf-stable groceries sold in large quantities.
• Fresh Foods: Meat, produce, deli, and bakery items prepared daily within the warehouses.
• Warehouse Ancillary: In-store services including pharmacies, food courts, and tire installation; gasoline sales represented 11% of net sales in fiscal 2026.
• Other Businesses: Travel booking, business delivery, and digital storefronts; digitally-enabled sales represented 11% of net sales in fiscal 2026.

Building More Warehouses

• Opened 28 new warehouses, including three relocations, during fiscal 2026.
• Increased annual membership fees for customers in the U.S. and Canada on Sept. 1, 2024.
• Issued three series of Guaranteed Senior Notes in Japan to fund international operations during 2026.
• Planned the opening of up to 33 new warehouses during fiscal 2027.

Why Members Keep Coming Back

Costco maintains loyalty through a membership model that achieved a 92.3% renewal rate in the U.S. and Canada in 2026. The company uses volume purchasing to offer branded products at lower prices than typical retailers.

Measuring the 2026 Results

• Net sales increased 10% to $297.2 billion in fiscal 2026.
• Membership fee revenue grew 11% to $5.9 billion in fiscal 2026.
• Net income rose 14% to $9.2 billion during the 2026 fiscal year.
• Cash and short-term investments totaled $21.3 billion at the end of fiscal 2026.

A Model of Efficiency

Costco has evolved from one Seattle warehouse into a global retail operation. Its focus on efficiency and member value supports its position in the discount industry.