Costco
Bulk packs at low prices, for members only.
52-week range
As of 5 Oct 2026, 17:50What does Costco do?
Costco, based in Issaquah near Seattle, runs huge warehouse stores. Only people who pay an annual membership can shop there. It sells goods in large packs with a very small markup, and membership fees bring in a big share of profit. Petrol stations, pharmacies and opticians in the warehouses add to that. Most stores are in the US.
There is no Costco in Germany. The nearest warehouses are in countries like France, Spain, Sweden and the UK. Many people know it from US holidays.
How Costco makes money
- Groceries & household essentials40 %
- Electronics, home & clothing26 %
- Gas stations, pharmacy & other19 %
- Fresh food (meat, produce, bakery)14 %
- Membership fees2 %
Strengths
- Just over 92% of members in the US and Canada renew their membership, and almost 90% worldwide.
- Membership fees make up about half of operating profit and are very predictable.
- Low prices keep Costco attractive even in weak times.
Risks
- The stock is expensive compared with its profits, so disappointments can hit the price hard.
- Margins on goods are very thin, so rising costs hit Costco directly.
- The business depends heavily on the US, and euro investors also carry dollar risk.
- Founded
- 1983
- Headquarters
- Issaquah, Washington
- Employees
- about 341,000
What if you had invested in Costco earlier?
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This page explains the company and is not a recommendation to buy or sell.