Costco Wholesale presentation

1. Costco
Wholesale
Corporation
By: Marta Colosimo (martacc)

2. Costco is a retail warehouse club that
brings high quality goods and services to
consumers at the lowest possible prices
using their membership and pricing
strategy.

3. Membership Pricing

4. Membership Services
● More to Costco than bulk groceries and home goods
● Services for home, business, and life

5. Persona
● Families
● Homeowners
● Have means to buy in bulk

6. Growth in Sales

7. Number of Worldwide Costco Members (million)

8. Business
Model
● Renewal rates + membership
growth
● Bulk packaging + samples
● Guaranteed markup no more
than 15%

9. Brief History
James Sinegal and Jeffrey Brotman
open Costco in 1983
1976
1983
1993
1997

10. Costco CEO
● Joined Costco in 1984
● CEO in 2012
● 2014 - third largest retailer in
United States
Walter Jelinek

11. Secret Sauce?
● Loss leaders
● Return Policy
● Exclusive club

12. Competition
Wholesale Goods
Membership
$60 $45 $156 (varies)
Electronics
Groceries
Food Court

13. Succeed or Fail?
● 21 new stores in 2018
● Retaining and growing customer base
● Kirkland Signature brand continues to grow

14. References
● https://www.costco.com
● https://www.statista.com/statistics/718406/costco-
membership/
● https://www.fool.com/investing/2017/01/25/2-ways-
costco-is-beating-the-competition.aspx
● https://www.investopedia.com/articles/personal-fina
nce/061715/business-model-analysis-costco-vs-sam
s-club.asp
● https://en.wikipedia.org/wiki/Costco
● https://www.investopedia.com/articles/insights/061
516/whats-average-costco-consumer-cost.asp
● https://www.nasdaq.com/article/how-does-costco-m
ake-money-cm205766
● https://finance.yahoo.com/quote/COST/financials?p
=COST
● https://www.cnbc.com/the-costco-craze-inside-the-w
arehouse-giant/
● https://www.nbcnews.com/better/pop-culture/how-s
ave-money-costco-avoid-overspending-according-sho
pping-pros-ncna919551