Costco Wholesale operates membership warehouses based on the concept that offering low prices on a limited selection of nationally-branded and private-label products across a wide range of categories produces high sales volumes and rapid inventory turnover. At the end of fiscal 2025 it operated 914 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, plus e-commerce sites in eight countries. Warehouses average about 147,000 square feet and carry fewer than 4,000 active SKUs, supplemented by ancillary businesses including gasoline (about 10% of sales), pharmacy, and optical, and by the Kirkland Signature private label. Membership fees, $65 annually for U.S. Gold Star members, are a key profit driver, and the model allows profitable operation at significantly lower gross margins than other retailers.

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Costco Wholesale Corp