Business Analysis on Costo Wholesale Corporation

Abstract Key Facts Costco Wholesale celebrated its 25th anniversary in 2001, tracing its history from the 1976 founding of San Diego-based Price Club, with which Costco merged in 1993, to today's company, the leader in membership-based wholesale warehouse sales. Costco has positioned its stores to not only attract a higher-end customer but also to offer high-quality, high-value products at very attractive prices. It does this through strong vendor relationships and an item-focused strategy that gives it economies of …

…for expansion, as there are many geographic areas remaining without an easily accessible club store, and many consumers are not yet shopping this channel. Performance improvements will arise not only from new memberships and new customers, but also from organic growth among its existing pool of members. Modernisation of the product mix, maintaining flexibility in inventory and SKUs and innovation in general merchandising will provide a basis for same-store sales growth over the forecast period.