Key Partners
- Direct relationships with brand-name producers (FACT).
- Private-label manufacturers for Kirkland Signature (FACT).
- Citibank — exclusive U.S. co-brand card issuer (FACT).
- Travel suppliers behind Costco Travel (FACT).
- Drop-ship suppliers for e-commerce orders (FACT).
- Landlords / developers for new sites (INFERENCE).
Key Activities
- Curate <4,000 active SKUs per warehouse (FACT).
- Volume buying direct from producers (FACT).
- Cross-docking depots and pallet display (FACT).
- Open new warehouses — 25 net new in FY26 (FACT).
- Run ancillary gas, pharmacy, optical, food court (FACT).
- Sell memberships and Executive upgrades (FACT).
Key Resources
- 939 warehouses, ~148,000 sq ft average (FACT).
- 84.1M paid members; 150.4M cardholders (FACT).
- Kirkland Signature private-label brand (FACT).
- 355,000 employees; ~95% in warehouses & distribution (FACT).
- Net PPE $35.6B; FY26 CapEx $6.44B (FACT).
- Cash $20.2B at FY26 year-end (FACT).
Value Propositions
- Consistently low prices on a limited assortment (FACT).
- Kirkland Signature quality at lower prices (FACT / INFERENCE).
- Executive 2% reward, up to $1,250/yr (FACT).
- Cheap gasoline at 774 gas stations (FACT).
- Pharmacy, optical, hearing aids, tires, travel (FACT).
- Generous returns; 90-day policy on certain electronics (FACT).
Customer Relationships
- Annual paid membership, renewed yearly (FACT).
- Executive upgrade with 2% reward (FACT).
- 92.3% U.S./Canada renewal; 89.8% worldwide (FACT).
- Exclusive Executive shopping hours in the U.S. (FACT).
- Co-brand card rebates issued every February (FACT).
- Member-only Costco Travel (FACT).
Channels
- 939 warehouses in 14 countries (FACT).
- 774 gas stations; gas = 11% of net sales (FACT).
- Business centers for small businesses (FACT).
- E-commerce in 9 countries; 9,000–11,000 SKUs online (FACT).
- Digitally-enabled = 11% of net sales (FACT).
- Costco Travel in U.S., Canada, U.K., Australia (FACT).
Customer Segments
- Households (Gold Star members) (FACT).
- Small businesses (Business members) (FACT).
- Executive members — ~75.2% of net sales (FACT).
- U.S. segment revenue $219.8B FY26 (FACT).
- Canada $40.6B; Other International $42.8B (FACT).
- California = 26% of U.S. net sales (FACT).
Cost Structure
- Merchandise costs $264.28B FY26 (~89% of net sales) (FACT).
- SG&A $27.19B FY26 (9.15% of net sales) (FACT).
- Above-average wages; U.S. hourly avg ≈$33 (FACT).
- Executive rewards cut sales by $3.38B (FACT).
- CapEx $6.44B; D&A $2.67B (FACT).
- ~$500M IEEPA tariffs paid; refunds received in Q4 (FACT).
Revenue Streams
- FY2026 total revenue $303.15B (+10.1%) (FACT).
- Net sales $297.25B; membership fees $5.91B (FACT).
- Foods & Sundries $116.79B · Non-Foods $77.38B (FACT).
- Fresh $41.72B · Ancillary & Other $61.37B (FACT).
- FY2026 operating income $11.69B (+12.5%) (FACT).
- FY2026 net income $9.23B (+14%) (FACT).