Costco facts for kids
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![]() Building 1 at Costco's headquarters campus in Issaquah, Washington
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Industry | Retail |
Founded | September 15, 1983 Seattle |
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Headquarters | , |
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905 (2025) |
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North America:
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Brands | Kirkland Signature |
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Costco Wholesale Corporation, known simply as Costco, is a large American company. It runs a chain of stores called warehouse clubs where you need a membership to shop. Costco is one of the biggest retailers in the world. It sells a lot of beef, chicken, organic fruits and vegetables, and even wine. Many people in America shop at Costco regularly.
Costco's main office is in Issaquah, Washington. Its own brand, Kirkland Signature, is named after its old location in Kirkland. The first Costco store opened in Seattle in 1983. However, Costco's history actually goes back to 1976. That's when its former competitor, Price Club, started in San Diego, California.
Costco first aimed to sell to businesses. Later, it also started letting individual people become members. It sells products for homes, including its own brand. As of July 2025, Costco has 905 stores around the world. Most of these stores, about 86%, are in North America.
Contents
Costco's Journey: A Look at Its History

How Price Club Started
Costco's story begins with Price Club. It opened its first store in San Diego, California, on July 12, 1976. Sol Price and his son, Robert, started it. Price Club was one of the first "warehouse clubs." These stores sold items in large amounts at lower prices. You needed to pay a yearly fee to be a member.
Price Club grew quickly. By 1986, it had 24 stores and over a million members. It expanded into Canada in 1986 and Mexico in 1992.
When Costco First Opened Its Doors
Jim Sinegal and Jeffrey Brotman opened the first Costco store in Seattle on September 15, 1983. Jim Sinegal had learned about wholesale from Sol Price at another store. Jeffrey Brotman came from a family involved in retail. Costco sold goods to small businesses for only a small profit.
More stores opened in Portland, Oregon, and Spokane in 1983. Costco became a public company in 1985. This meant people could buy shares of the company. At that time, Costco had 17 stores and 1,950 employees. The company's main office moved to Kirkland in 1987.
The Big Merger: PriceCostco Is Born
In 1993, Costco and Price Club decided to join forces. They were similar in how they did business and their size. The new company was called PriceCostco. Members could now shop at either Price Club or Costco stores. PriceCostco had 206 locations and made $16 billion in sales each year.
In 1996, Costco moved its main office from Kirkland to Issaquah. They built a new campus next to a store. This allowed buyers to easily check sales and products. In 1997, the company officially went back to just using the Costco name. All remaining Price Club stores were also renamed Costco.
Other Important Moments for Costco
In March 2005, the first Costco store in Seattle was replaced with a new building. The old building became a parking lot, gas station, and car wash. By 2014, Costco was the third-largest retailer in the United States. That year, Costco also planned to open an online store in China.
Costco opened its first store in China in Shanghai on August 27, 2019. So many customers came that the store had to close early! The first Costco in New Zealand opened in West Auckland in September 2022.
Costco Today: A Global Giant

In the United States, Costco's main rivals are Sam's Club and BJ's Wholesale Club. Costco has 333,000 employees worldwide. As of November 2023, Costco had 129.5 million members.
Costco was the first company to grow from no sales to $3 billion in sales in less than six years. For the year ending August 31, 2024, the company's sales were $254.453 billion. Costco is known for its good customer service.
In September 2024, Costco increased its membership fees slightly. Gold Star and Business memberships went from $60 to $65. Executive memberships went from $120 to $130. Also in 2024, Costco started using barcode scanners at entrances. Members now scan their cards to enter, which helps prevent sharing memberships. Food court access was also limited to members only.
Where Can You Find Costco Stores?

As of July 2025, Costco has 905 stores globally:
- 624 in the United States (including Puerto Rico)
- 109 in Canada
- 43 in Mexico
- 37 in Japan
- 29 in the United Kingdom
- 19 in South Korea
- 15 in Australia
- 14 in Taiwan
- 7 in China
- 5 in Spain
- 2 in France
- 1 in Iceland
- 1 in New Zealand
- 2 in Sweden


All Costco stores around the world look very similar. They have the same layout, signs, and parking lot markings. A typical store has a simple path from the entrance to the checkout. Costco works with a company called MG2 to build its stores. These stores are usually built in about 110 days.
The food court menus change based on the country. For example, you can find meat pies in Australia and poutine in Canada. Asian locations might have seafood pizza. Mexico has pastor taco-topped pizzas.
Costco Stores with Apartments Above Them
In September 2024, Costco started building its first store in the United States that also has apartments above it. This project is in Los Angeles, California. It will have 800 apartments above the Costco store. Some of these apartments will be for families with lower incomes. This new type of building is possible because of a new law in California.
The Biggest and Smallest Costco Stores
In 2015, the largest Costco store was in Salt Lake City, Utah. It was 235,000 square feet. This store is a mix of a regular Costco and a Costco Business Center. This makes it very large.

As of 2019, the smallest Costco is in Juneau, Alaska. It is 76,696 square feet. This store is special because Costco tried building smaller stores in 1993. They found that smaller stores don't work well for most places. But it works for Juneau.
Costco Business Centers: For Businesses
Costco Business Centers are like regular Costco stores, but they focus on selling things to businesses. All Costco members can shop there. These centers do not sell clothes, jewelry, or tires. Instead, they have larger amounts and more choices for business products. Over 70% of the items at a Business Center are not found in a regular Costco store.
Some Business Centers have a food court or a gas station. They have big parking lots for trucks. They can also deliver large orders to businesses. Business Centers have shorter hours than regular stores. The first Business Center opened in Lynnwood, Washington, in 1996.
As of August 2022, there are 26 Costco Business Centers in the United States. The first one outside the US opened in Canada in 2017.
How Costco Makes Money
Costco is a membership-only store. Customers must buy a membership to shop there. The money from these membership fees makes up most of Costco's profits. In 2024, these fees made up 65.5% of the company's profit.
Costco divides its business into three main parts:
- United States Operations (72.4% of all money earned)
- Other International Operations (13.9% of all money earned)
- Canadian Operations (13.7% of all money earned)
Costco's Sales Approach
Costco has a rule: no regular item can be marked up more than 14% over its cost. Kirkland Signature items can't be marked up more than 15%. The company keeps its costs very low. For example, Costco does not have a public relations department. It also does not buy outside advertising.
Costco focuses on selling a limited number of products. A typical Costco store has about 3,700 different products. A typical Walmart Supercenter has about 140,000 products. Costco sells a lot of each product at a lower price. If Costco thinks a product's wholesale price is too high, they won't sell it. For example, in 2009, Costco stopped selling Coca-Cola products because the price was too high. They started selling them again a month later.
Costco also asks manufacturers to package their products in large sizes. These packages must be easy to put on pallets for the stores. Because Costco is so big and careful about what it buys, it has a lot of power with manufacturers. If a product sells well at Costco in one country, Costco might sell it in other countries too.
Even though Costco tries to save money, its stores are expensive to build. In 2013, a new store cost about $80 million. This is partly because they need a lot of land for the large building, a big parking lot, and often a gas station. Costco saves on lighting costs by using skylights. On sunny days, sensors turn off some of the indoor lights.

Costco's Rotisserie chickens are very popular. They bring many customers to the stores. Costco has sold them since 1994. In 2019, Costco opened a factory in Nebraska to produce its own chickens. This helps them keep prices low and quality high. Some international Costco stores also make sushi in-house.
Costco is known for its "exit greeters." These employees quickly check receipts against shopping cart items as customers leave. They make sure customers were charged correctly and didn't miss any items. Costco has had exit greeters since its first store opened in 1983.
How Costco Manages Its Employees
Costco is known for its strong company culture. It encourages loyalty and promotes employees from within. As of 2024, over 90% of new employees stay for at least a year. Many senior leaders started as regular employees in the stores. For example, Ron Vachris started as a forklift driver in 1982. He became Costco's CEO in 2024.
At Costco's main office, all 7,000 employees, including the CEO, work in cubicles. The CEO's cubicle is just a bit larger. All Costco leaders are expected to visit stores often. They spend most of their time helping solve problems in the stores. The CEO tries to visit as many stores as possible around the world.
Shopping Online with Costco
Costco mainly wants members to visit its stores. However, during the COVID-19 pandemic, Costco's online sales grew a lot. Costco launched its online shopping site, Costco Online, in 1998.
Costco also partners with delivery services like Instacart and Shipt. These services offer Costco delivery in certain areas. In October 2017, Costco started offering same-day and two-day grocery delivery for members. In Iceland, Costco started allowing people to buy alcohol online and pick it up at the store in June 2023.
What Can You Buy at Costco?
Costco often changes its products. Items might be in stock temporarily or only during certain seasons. This creates a "treasure-hunt atmosphere." Shoppers feel they need to buy a good deal right away because it might not be there next time.
Over the years, Costco has added many different products. It started with large, boxed items. Now, it sells art, books, clothing, electronics, and fresh foods like meat and produce. It also sells solar panels, tires, and vacuum cleaners. Costco has become a huge buyer for some goods. For example, as of 2025, Costco sells more than half of the world's cashews.
Many Costco stores also offer extra services. These include gas stations, pharmacies, hearing aid centers, and optometry departments. They also have tire installation garages.
Alcohol Sales at Costco
Alcohol sales at Costco vary by location. This is because of different laws in different places. In some areas, alcohol is sold in separate liquor stores. In others, it's available inside the main Costco store. For example, in Texas, liquor sales must be handled by a separate business.
Costco has tried to change alcohol sales laws in some states. In Washington state, Costco supported a law that allowed retailers to sell liquor directly. This law passed in 2011.
Costco stores with large wine sections often have a "wine steward." This person helps customers choose wines. As of October 2024, Costco had about 30 wine stewards in its US stores. Costco sometimes offers rare or very cheap alcoholic drinks when new stores open. For example, when a new store opened in Napa, California, in October 2024, whiskey fans camped out for days.
Books at Costco
For 40 years, Costco was a major place to buy books. Many people who didn't often visit bookstores would buy books at Costco. When Costco decided to sell a book, it would buy tens of thousands of copies. This was a big deal for book publishers.
In the 2020s, Costco started thinking about not selling books all year. Books require a lot of work to unpack and display. Books that don't sell must be sent back to publishers.
In 2022, Costco stopped selling books year-round in its Alaska and Hawaii stores. In June 2024, publishing experts worried that Costco planned to do the same in its other 600 US stores by January 2025. This would mean books would only be a full section during the holiday season. In November 2024, Costco agreed to keep year-round book sections in 100 of its US stores for now.
Gold and Platinum at Costco
Costco started selling one-ounce, 24-karat gold bars in October 2023. They usually sell for a bit more than the market price. But Executive members can get cash back, making them a good deal. Costco sees this as a way to get more people to become members.
In 2024, after gold bars were popular, Costco also started selling platinum bars. You can buy these online.
Kirkland Signature: Costco's Own Brand
Kirkland Signature is Costco's own brand. You can find it on many products in Costco stores and online. It started in 1995 and is named after Kirkland, Washington, where Costco's main office used to be. Kirkland Signature products make up almost one-third of Costco's total sales.
In 2024, Kirkland Signature made $86 billion in sales. This was more than some very large consumer product companies made that year.
The goal of Kirkland Signature is to offer products that are as good as famous brands but at lower prices. Costco sometimes partners with well-known companies to make Kirkland Signature products. This helps customers trust the quality. For example, some Kirkland Signature products are made by companies like Duracell and Starbucks.
Costco's CEO personally approves all Kirkland Signature products. These products are expected to sell a lot. If they don't sell well, they can be removed quickly.
For manufacturers, making a Kirkland Signature product means they don't have to spend money on advertising. If a company has a great new product but it's expensive to make, Costco can help them sell it nationwide.
Services Offered by Costco
Concierge Service
Costco offers a free "concierge" service for members who buy electronics. This service helps answer questions about setting up and using products. It helps prevent returns if customers don't understand how to use something.
Costco Auto and Home Insurance
Costco works with CONNECT, powered by American Family Insurance. They offer auto insurance, home insurance, and umbrella insurance to members.
Costco Optical
Costco Optical is one of the largest optical companies in the US. You don't need a Costco membership to see an optometrist at Costco. But you do need a membership to buy glasses or contacts from the optical department.
Costco Travel
Costco Travel is a part of Costco Wholesale. It offers vacation packages to Costco members in the United States and Canada. You can find trips to places like Hawaii, Mexico, and Europe.
Costco Food Court

In 1985, Costco started selling food from a hot dog cart at its first store. Most Costco stores now have a food court. The menu is usually the same: a hot dog with a drink, pizza, frozen yogurt, and other items.
Costco's famous quarter-pound 100% beef hot dog and a drink cost $1.50. This price has been the same since 1985! In a July 2024 interview, Costco's CEO said the hot dog combo price would not change. In 2017, Costco sold over 137 million hot dogs in its food courts.
Some food court items are only in certain countries. For example, the bulgogi bake is only in Australia, Taiwan, South Korea, and Japan. Poutine is available in Canada and France.
Costco Credit Card
Since April 1, 2016, Citigroup has issued Costco's credit cards in the US. Before that, American Express issued them. Costco now only accepts Visa credit cards. In Canada, Costco partners with CIBC Mastercard for its credit cards. These credit cards also work as Costco membership cards.
Costco Audiobook App
In March 2021, Costco started selling audiobooks. They also launched an app for members to listen to their purchases. The app is free, but the audiobooks are only for Costco members. Costco sells audiobooks in bundles, usually by genre or author. They cost between $5 and $50. Audiobooks are currently only available in US stores.
Costco and Its Employees
Employee Rights and Pay
Most Costco stores are not part of a labor union. However, some former Price Club locations are unionized. Costco has an "Employee Agreement" that sets out benefits, wages, and other rules. As of June 2022, hourly wages for non-supervisory workers ranged from $17.50 to $28.45 in the US.
In February 2021, Costco announced it would raise the starting pay for its hourly store workers in the United States to $16 an hour. Costco has been increasing its minimum wage over the years. In 2005, 85% of Costco's workers had health insurance. This was much higher than at other large retailers.
In 2023, a Costco store in Norfolk, Virginia, successfully formed a union. This was the first new union at Costco in over 20 years. In January 2025, the Teamsters union, which represents over 18,000 Costco employees, voted to strike. They are asking for fair wages and benefits.
Product Demonstrations
Costco works with two separate companies, Club Demonstration Services (CDS) and Warehouse Demo Services (WDS). These companies provide employees who give out food samples and do product demonstrations in Costco stores. These employees have different pay and benefits than regular Costco employees.
During the COVID-19 pandemic in March 2020, product demonstrations in US stores stopped. Some employees were temporarily laid off. They were rehired when demonstrations started again in June 2020. By June 2021, demonstrations had resumed in all US stores.
Past Costco Ideas
Costco Home Stores
The first Costco Home store opened in December 2002 in Kirkland, Washington. These stores tried to combine Costco's low prices with the products you'd find in a fancy home store. They sold furniture, kitchen items, and accessories from high-end brands. A second store opened in Arizona in 2004.
However, in April 2009, Costco decided to close its Costco Home stores. They closed both existing stores in July 2009. They also stopped plans for a third store.
Costco Fresh Stores
In 1999, Costco announced a grocery-focused store called Costco Fresh for New York City. This idea was dropped later that year due to high costs and local protests. The idea came back in 2002 for a store in Bellevue, Washington. This new store would mainly sell fresh produce, meats, and baked goods. It would have a special logo with a fruit stem.
However, this concept was also dropped the following year. Costco still wanted to build a regular store at that location, but plans were abandoned in 2008 due to building rules.
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See also
In Spanish: Costco para niños