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Costco: Leading Research

Costco Wholesale Corporation operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name.

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Costco: Leading Research

  1. 1. Costco Industry Reports Brought to you by:
  2. 2. Company Description The company's first location, opened in 1976 under the Price Club name, was in a converted airplane hangar on Morena Boulevard in San Diego. The company found it could achieve far greater buying power by serving small businesses and a select audience of non-business members. With that, the growth of the warehouse club industry was off and running. In 1983, the first Costco warehouse location opened in Seattle. Costco became the first company to grow from zero to $3 billion in sales in less than six years. When Costco and Price Club merged in 1993 to become PriceCostco, it had 206 locations generating $16 billion in annual sales. Our operating philosophy has remained simple: Keep costs down and pass the savings on to our members. Our large membership base and tremendous buying power, combined with our never- ending quest for efficiency, result in the lowest possible prices for our members. Since resuming the Costco name in 1997, the company has grown worldwide. During the past fiscal year (ended August 28, 2016), total sales were $116.1 billion.
  3. 3. Profile Costco Wholesale Corporation 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. 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's warehouses present one of the largest and most exclusive product category selections to be found under a single roof. Categories include groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, housewares, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment. Costco is known for carrying top quality national and regional brands, with 100% satisfaction guaranteed, at prices consistently below traditional wholesale or retail outlets. Members can also shop for private label Kirkland Signature™ products, designed to be of equal or better quality than national brands, including juice, cookies, coffee, housewares, luggage, clothing and detergent. The Company also operates self-service gasoline stations at a number of its U.S., Canada, Australia, Japan, Spain and United Kingdom locations. Additionally, Costco Wholesale Industries, a division of the Company, operates manufacturing businesses, including special food packaging, optical laboratories, meat processing and jewelry distribution. These businesses have a common goal of providing members with high quality products at substantially lower prices.
  4. 4. Leading Research Costco Wholesale Corp in Retailing (USA) Euromonitor | March 2017 Costco: Performance, Capabilities, Goals and Strategies in the Global Retail Industry VPGMarketResearch.com | July 2017 Costco Wholesale Corporation - Strategy, SWOT and Corporate Finance Report MarketLine | October 2016 Retail Market Global Briefing 2017Including: Specialty Retailers, Department Stores & Other General Merchandise Stores, and Ecommerce & Other Non-store Retailers.Covering: Wal-Mart, Costco, Kroger, Amazon Inc., Home Depot, Schwarz Unternehmens Treuhand KG The Business Research Company | June 2017 The Future of Food Retailing: Value Grocery Shopping in the U.S. Packaged Facts | March 2017
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