The retailer that figured out the membership fee is the business and the warehouse is just the excuse

COSTCO
WHOLESALE

Costco sells a $6 rotisserie chicken at a loss. It sells a $1.50 hot dog at a loss. It marks up merchandise an average of 11% — half of what Walmart charges. It does all of this deliberately, because the product is not the merchandise. The product is the membership. 73 million households pay $65-$130 per year for the privilege of shopping at Costco. The warehouse is the excuse. The membership fee is the business. And with a 93% renewal rate, almost nobody ever cancels.

914 Total Warehouses
81.0M Paid Members
$5.32B Membership Fee Revenue
92.3% Renewal Rate (US & Canada)
16% E-commerce Comp Growth
$13.34B Operating Cash Flow
73.6% Executive Member Penetration
6% Comparable Sales Growth
12% Quarterly Dividend Increase
27 New Warehouses Opened
10-K · Oct. 8, 2025
COST · NASDAQ
Market Cap $420B
Members 73M+ households
Renewal Rate 93%
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