Customers looking to stock up on toilet paper, grab a rotisserie chicken for dinner, or fill up the gas tank without breaking the bank know just where to go. And with shares trading near an all-time high, investors clearly love Costco Wholesale Corp. (NASDAQ: COST) too.
The success of this Fortune 500 company made it the third-largest retailer in the world again in 2023. With hundreds of locations in eight countries, Costco offers the best possible prices on carefully chosen quality brand-name merchandise, as well as the convenience of specialty departments, a private label brand that matches or beats national brands, exclusive member services, and a satisfaction guarantee.
The first Costco Warehouse location opened in Seattle in 1983. The company went public in 1985, and its stock is a member of the S&P 500. The company remains headquartered in the Seattle area.
How Does Costco Make Money?
Costco operates a chain of membership-only big-box warehouse club retail stores that offer members a wide variety of merchandise, often in large, wholesale quantities. That makes Costco attractive to both small businesses and bargain hunters. A basic Gold Star membership costs $60 a year and allows members to shop in its warehouse locations and online. The premium Executive membership costs $120 per year and also includes annual rewards and discounts. Membership benefits include travel services, gasoline, pharmacy, grocery delivery, optical services, a food court, and a Citi Visa credit card.
Membership fees brought in $4.58 billion in 2023, an 8% increase over the prior year. That was nearly 20% of total net sales for the year.
Costco’s advantages over other retailers include its limited advertising budget, margins lower than traditional retailers, and the loyalty of its customer base, due largely to its low prices on high-quality products. Costco’s closest competitors are Sam’s Club, a subsidiary of Walmart Inc. (NYSE: WMT), and BJ’s Wholesale Club Holdings Inc. (NYSE: BJ).
Here is how much Costco has made per minute. Let’s take a look by year over the past decade.
2012
- Revenue per Minute: $188,617
- Net Income per Minute: $3,253
- Total Revenue: $99.1 billion
- Total Net Income: $1.7 billion
- Store Count: 608
- Revenue per Store: $163.0 million
- Net Income per Store: $5.4 million
2013
- Revenue per Minute: $200,069
- Net Income per Minute: $3,881
- Total Revenue: $105.2 billion
- Total Net Income: $2.0 billion
- Store Count: 634
- Revenue per Store: $165.9 million
- Net Income per Store: $3.2 million
2014
- Revenue per Minute: $214,308
- Net Income per Minute: $3,919
- Total Revenue: $112.6 billion
- Total Net Income: $2.1 billion
- Store Count: 663
- Revenue per Store: $169.9 million
- Net Income per Store: $3.1 million
2015
- Revenue per Minute: $221,079
- Net Income per Minute: $4,528
- Total Revenue: $116.2 billion
- Total Net Income: $2.4 billion
- Store Count: 686
- Revenue per Store: $169.4 million
- Net Income per Store: $3.5 million
2016
- Revenue per Minute: $225,873
- Net Income per Minute: $4,471
- Total Revenue: $118.7 billion
- Total Net Income: $2.4 billion
- Store Count: 715
- Revenue per Store: $166.0 million
- Net Income per Store: $3.3 million
2017
- Revenue per Minute: $245,481
- Net Income per Minute: $5,118
- Total Revenue: $129.0 billion
- Total Net Income: $2.7 billion
- Store Count: 741
- Revenue per Store: $174.1 million
- Net Income per Store: $3.2 million
2018
- Revenue per Minute: $269,361
- Net Income per Minute: $5,955
- Total Revenue: $141.6 billion
- Total Net Income: $3.1 billion
- Store Count: 762
- Revenue per Store: $185.8 million
- Net Income per Store: $3.1 million
2019
- Revenue per Minute: $290,531
- Net Income per Minute: $6,944
- Total Revenue: $152.7 billion
- Total Net Income: $3.7 billion
- Store Count: 782
- Revenue per Store: $195.3 million
- Net Income per Store: $3.0 million
2020
- Revenue per Minute: $317,277
- Net Income per Minute: $7,610
- Total Revenue: $166.7 billion
- Total Net Income: $4.0 billion
- Store Count: 795
- Revenue per Store: $209.7 million
- Net Income per Store: $5.0 million
2021
- Revenue per Minute: $372,772
- Net Income per Minute: $9,512
- Total Revenue: $195.9 billion
- Total Net Income: $5.0 billion
- Store Count: 815
- Revenue per Store: $240.4 million
- Net Income per Store: $4.9 million
2022
- Revenue per Minute: $431,800
- Net Income per Minute: $11,111
- Total Revenue: $226.9 billion
- Total Net Income: $5.8 billion
- Store Count: 838
- Revenue per Store: $270.8 million
- Net Income per Store: $7.0 million
2023
- Revenue per Minute: $460,978
- Net Income per Minute: $11,967
- Total Revenue: $242.3 billion
- Total Net Income: $6.3 billion
- Store Count: 861
- Revenue per Store: $281.4 million
- Net Income per Store: $6.8 million
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