Costco
Costco Wholesale Corporation operates all over the world as chains of warehouses under the 'Costco Wholesale' name. The warehouses carry quality, brand name merchandise at substantially low prices. The warehouses are designed to help small to medium sized businesses reduce costs in purchasing for resale and for everyday business use. Individuals may also purchase for their personal needs. Costco is a Public Company.
How it all began
Costco Wholesale Corporation began operations in Seattle, Washington 1983. In October 1993, Costco joined with The Price Company, which had pioneered the membership warehouse concept in 1976, to form Price/Costco, Inc., a Delaware Corporation. In 1997, Price Enterprises, Inc., changed its name to Costco Companies, Inc. In 1999 Costco Companies Inc., changed its name to Costco Wholesale Corporation which trades on the NASDAQ (stock exchange) under the symbol 'COST'.
Pricing Considerations - Cost Strategy
Costco is a 'no-frills' company and focuses purely on price. They buy in bulk and sell in bulk and pass on the savings in a warehouse - style store to its members.
Costco sells products at low prices in bulk and they market to large families and businesses. They do not carry multiple brands or varieties, unless they are selling their house brand. (Home brand is under the Kirkland Signature label). This allows Costco to by from a single vendor, which allows them to lower their prices and marketing costs. Costco do not stock extra bags or packaging material so therefore the customers bring their own bags or shipping boxes which saves money.
Costco sells products at low prices in bulk and they market to large families and businesses. They do not carry multiple brands or varieties, unless they are selling their house brand. (Home brand is under the Kirkland Signature label). This allows Costco to by from a single vendor, which allows them to lower their prices and marketing costs. Costco do not stock extra bags or packaging material so therefore the customers bring their own bags or shipping boxes which saves money.
Products
Costco's warehouses present one of the largest and most exclusive product category selections to be found in a single warehouse with categories ranging from groceries, confectionary, appliances to television and media, automotive supplies, tyres, toys, hardware, sporting goods, jewellery, watches, cameras, books, house-ware, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment.
Community Involvement
Costco does not have heavy community involvement in Australia as it has only recently developed three stores.
More Facts
Areas of Operation:
- 429 locations in 40 U.S states and Puerto Rico
- 82 locations in nine Canadian provinces
- 32 locations in 18 Mexican states
- 22 locations in the United Kingdom
- 8 locations in Taiwan
- 7 locations in Korea
- 9 locations in Japan
- 3 locations in Australia
Members (as of 13/02/11)
- 62.6 million cardholders
- 34.4 million households
- 24.3 million Gold Star
- 6.3 million Business
- 3.9 million Business add ons
Number of Employees Worldwide
- 155,000 full and part time
Warehouse Sizes
- 73,000 to 205,000 square feet (average 145,000 square feet, which is over 2 football fields!)
- 429 locations in 40 U.S states and Puerto Rico
- 82 locations in nine Canadian provinces
- 32 locations in 18 Mexican states
- 22 locations in the United Kingdom
- 8 locations in Taiwan
- 7 locations in Korea
- 9 locations in Japan
- 3 locations in Australia
Members (as of 13/02/11)
- 62.6 million cardholders
- 34.4 million households
- 24.3 million Gold Star
- 6.3 million Business
- 3.9 million Business add ons
Number of Employees Worldwide
- 155,000 full and part time
Warehouse Sizes
- 73,000 to 205,000 square feet (average 145,000 square feet, which is over 2 football fields!)