Retailer Spotlight: Costco

Costco Wholesale is a multi-billion-dollar global retailer with warehouse club operations in 14 countries. It is known for low prices on a curated selection of high-quality, brand-name, and Kirkland Signature products. 

Based in Issaquah, WA, Costco’s focus on bulk, high-volume sales, combined with a 100 percent satisfaction guarantee, has paid off. The company continues to deliver strong financial results, with double-digit net sales growth in fiscal 2026.

Costco was named by Washington CEO Magazine as one of the top three companies to work for in the state. Costco’s FY2026 annual report also noted a 94 percent retention rate among employees in the US and Canada with at least one year of service.

The warehouse retailer operates its own gas stations and sold 157.4 million rotisserie chickens worldwide in 2025, while maintaining its $4.99 price. It also sells seven times more hot dogs than all MLB stadiums combined.

Costco warehouses carry about 4,000 SKUs compared to the roughly 30,000 found at most supermarkets. Products are selected based on quality, price, brand, and features, so the company can deliver strong value to its members. As a result, Costco has developed a cult-like following among its millions of members. A quick scan of social media shows enthusiastic fans tracking deals and new inventory. 

2026 product trends reflect strong demand for high-protein convenience foods and globally inspired bakery items. From boba ube ice milk bars and pink guava crepes to ready-to-go charcuterie kits and beef tenderloins, shoppers find new inspiration on every Costco run.

History 

Costco’s history began in an unlikely place: a converted airplane hangar on Morena Boulevard in San Diego. Opened in 1976 and called Price Club, it served a select audience and is considered the start of the warehouse club industry. 

In 1983, the first Costco warehouse opened in Seattle. The company grew to $3 billion in sales in less than six years. Costco and Price Club merged in 1993, forming PriceCostco with 206 locations and $16 billion in annual sales. The company became Costco Companies, Inc. in 1997 before adopting its current name in 1999.

Today, the warehouse giant’s footprint spans many countries. The company operates 939 warehouses, including 647 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland and New Zealand. Costco also operates e-commerce sites in the US, Canada, China, the UK, Mexico, Korea, Taiwan, Japan and Australia.

Leadership 

Ron Vachris became the President and CEO of Costco Wholesale Corporation in January 2024. His rise to CEO reflects the company’s longstanding commitment to developing employees from within. Vachris began as a forklift driver more than 40 years ago and rose through the ranks to become the company’s third CEO. 

He succeeded Craig Jelinek, who led the company from 2012 to 2023. Vachris previously served as Executive Vice President of Merchandising, Senior Vice President of Real Estate Development, Senior Vice President, General Manager of the Northwest Region, and spent 28 years in various management positions in warehouse operations. 

Vachris also serves on the board of directors alongside nine other members. The board includes executives with backgrounds in retail, finance, and technology. In January 2026, former US Commerce Secretary Gina Raimondo was elected to Costco’s Board of Directors. Raimondo served as the 40th Secretary of Commerce from 2021 to 2025 and as the Governor of Rhode Island from 2015 to 2021.

Sustainability and Community

Costco’s 2025 sustainability report highlights the company’s efforts to make a positive impact in the communities where it operates. From climate initiatives to resource management, the company is making strides. 

In FY25, Costco diverted 82.8 percent of waste from landfills, reduced water use intensity by 4.4 percent and cut plastic in Kirkland Signature packaging by 1.5 million pounds. Operational emissions fell 7.2 percent, while clean energy sources supplied 28 percent of global electricity. 

“At Costco, our deep commitment to sustainability is a core part of our mission and a driving force for long-term growth and success. Respecting how people, animals and the environment are treated is an essential part of Costco’s business strategy and is how we do the right thing,” stated Vachris in the report. 

Long-term, the company aims to operate on 100 percent clean electricity by 2035, including solar, wind, hydropower and nuclear energy. It also plans to achieve a 39 percent absolute reduction in operational emissions by 2030, compared to its 2020 base year.

In August 2026, Costco published an update on its emissions reduction strategy. The company acknowledged that its growth and higher-than-anticipated refrigerant leak rates have complicated its efforts to reduce operational emissions by 39 percent by 2030.

Costco also supports the communities where it operates. The company budgets 1 percent of pretax profits for charitable contributions focused on children, education, and health and human services. In FY25, Costco donated $97 million in charitable contributions, provided 186 million meals and gave another $97 million in donated products.

Recent News

Costco closed fiscal 2026 with strong results, reporting net sales of $297.2 billion for the year ending Aug. 30, 2026, an increase of 10.1 percent from $269.9 billion the previous year. Net income rose to $9.23 billion, compared with $8.10 billion in FY25. Digitally enabled comparable sales increased 20.7 percent, excluding foreign-exchange impacts, reflecting continued growth in the company’s digital business.

In October, Costco reported September net sales of $30.02 billion, up 13 percent year-over-year. Comparable sales increased 11.4 percent, while digitally enabled sales rose 19 percent. 

Costco continues to expand its footprint across North America, with 14 new warehouse openings planned for October and November 2026. October openings include locations in Lee’s Summit, MO; The Colony, TX; Amherst, NY; Lawrence, KS; and Camarillo, CA. Nine additional locations are expected in November, including four in Canada.

Tariffs have also been a significant issue for the retailer. In March, Costco faced a proposed class-action lawsuit seeking refunds for customers who allegedly paid higher prices as a result of tariffs that the US Supreme Court ruled unlawful in February. The company subsequently sought dismissal of the case. In its FY2026 annual report, Costco disclosed that it had received $184 million in tariff refunds and interest during the fiscal year, followed by another $155 million after year-end. Costco said it had reinvested some of the refunds in lower prices and intended to use the majority of future refunds to deliver additional value to members.

From a single warehouse in a converted airplane hangar to more than 900 locations worldwide, Costco has built a retail model defined by value, efficiency and fierce customer loyalty. As the company continues to expand globally, its disciplined product selection and member-first philosophy remain the foundation of its enduring success.