Costco

Costco Wholesale Corporation (commonly referred to as Costco) is an American multinational corporation that operates a chain of membership-only big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine.

History

Costco was founded in Seattle, Washington, on September 15, 1983, by James Sinegal and Jeffrey Brotman. The first Costco warehouse location was in Seattle. In 1993, Costco merged with Price Club, effectively doubling the size of the company.

Business Model

Costco's business model is to generate high sales volumes and rapid inventory turnover by offering a limited assortment of merchandise in a wide variety of product categories. The company operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name, that carry quality, brand-name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources.

Membership

Costco offers three types of membership options: Executive, Business, and Gold Star. Each membership type offers different benefits and privileges, with the Executive membership offering the most benefits.

Products and Services

Costco's merchandise is constantly changing and is broadly divided into several categories, including groceries, appliances, electronics, health and beauty aids, sporting goods, jewelry, and furniture. Costco also offers services such as travel, auto, and insurance.

Criticism and Controversy

Like many large corporations, Costco has been the subject of criticism and controversy. Issues have included employee wage disputes, product sourcing, and environmental impact.

See Also

• List of supermarket chains in the United States
• Walmart
• Sam's Club

References

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