Issaquah, Washington, October 2 — Costco Wholesale Corporation concluded its fiscal year with strong performance that directly supports its announced expansion strategy, though the source material does not disclose specific financial figures such as revenue, earnings, or same-store sales growth. The company, which operates membership-based warehouse clubs, emphasized that its fiscal year-end results were favorable enough to justify ambitious growth initiatives, including opening new warehouse locations, remodeling existing stores, and increasing its global footprint.
Business Model and Membership Foundation
Costco’s business model relies on annual membership fees and high-volume sales of goods ranging from groceries to electronics, a structure that has proven resilient amid shifting economic conditions and underpins its ability to drive expansion through member retention and shopping frequency. The company continues to compete in the retail sector by offering bulk products at discounted prices, a value proposition that has driven its long-term success and now serves as the foundation for its next phase of scaling operations.
As of March 2026, Costco operates 924 warehouses worldwide, with 85% of them located in North America — specifically the United States, Canada, and Mexico — reflecting a concentrated domestic base with room for international growth.
Corporate History and Evolution
Costco’s origins trace back to 1976, when its former competitor Price Club was founded in San Diego, California, by Sol Price and his son Robert after a dispute with the new owners of FedMart. Price Club opened its first store on July 12, 1976, on Morena Boulevard in San Diego, operating out of old airplane hangars once owned by Howard Hughes and targeting small business owners with a no-frills, bulk-sales model requiring an annual membership fee. Jim Sinegal and Jeffrey H.
Brotman opened the first Costco warehouse in Seattle on September 15, 1983; Sinegal had worked for Sol Price at FedMart, while Brotman came from a Seattle retailing family and began his career as a grocery bagger. Through mergers, Costco’s corporate history now spans back to the 1976 founding of Price Club, and the company moved its headquarters to Kirkland, Washington, in 1987 before settling in its current location in Issaquah, an eastern suburb of Seattle.
The Kirkland Signature house label is named after that former Kirkland headquarters, underscoring how the company’s physical evolution is embedded in its branding. As Costco moves into its next fiscal year, the emphasis remains on scaling operations while maintaining the value proposition that has driven its success, with expansion plans underscoring confidence in its market position and intent to capture additional market share domestically and internationally.
