Costco’s Revenue by Segment (2016-2023)

• Membership Fees
• Net Sales

The following table sheds more light on each of Costco’s segments and their contribution to the company’s overall top line.

(All figures in billions, except percentages)

Costco operated 809 warehouses worldwide for the fiscal year ended May 9, 2021, including 559 in the United States, 105 in Canada, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 12 in Australia, 39 in Mexico,  29 in Japan, three in Spain, and one each in Iceland, France, and China. It runs websites for e-commerce in the United States, Canada, Mexico, the United Kingdom, Korea, Taiwan, Japan, and Australia.

Costco’s total revenue increased from $37.27 billion in Q3 2020 to $45.28 billion in Q3 2021, marking an increase of 21.49% on a year-on-year basis.

Membership Fees

Costco offers three types of membership such as executive, business, and gold star.

1. Executive Membership:

• $120.00 Annual membership fees in which $60 membership fees and $60 upgrade charge
• This offers a free Household Card that can be used at any Costco location worldwide.
• Annual 2% Reward on Eligible Costco Purchases
• Additional advantages and discounts on Costco’s services
• Extra savings on certain Costco Travel items

• $60 Annual membership fees
• Includes a free Household Card
• Add Affiliate Cardholders for $60 each
• Valid at all Costco locations worldwide
• Purchase for resale
• Business Members must provide Costco with the appropriate resale information

3. Gold Star Membership:

• $60 Annual membership fees
• Includes a free Household Card
• Valid at all Costco locations worldwide

By the end of 2020, the renewal rates of Costco’s membership were 91% in the U.S. and Canada and 88% worldwide. Costco’s revenue from the membership fees segment increased from $0.82 billion in Q3 2020 to $0.90 billion in Q3 2021, marking an increase of 9.76% on a year-on-year basis. During this period, this segment contributed approximately 2% to the company’s total revenue.

Net Sales

Increasing net sales, particularly comparable sales growth, is a key driver of a company’s profitability.
Net sales include main product categories, warehouse auxiliary companies, and other ventures. Costco defines comparable sales as net sales from warehouses that have been operational for more than a year, including remodels, relocations, and expansions, as well as sales from e-commerce websites that have been open for more than a year.

Costco Wholesale Corporation generated $44.38 billion in Q3 2021 which is an increase from $36.45 billion in Q3 2020, showed 21.76% year over year growth. The net sales segment contributed approximately 98% revenue share in Q3 2021.

Company Overview

Costco Wholesale Corporation was founded in 1976 by James Sinegal and Jeffrey Brotman. Its headquartered in Issaquah, Washington, United States. Costco opened its first warehouse in 1983 in Seattle. In 1993 Costco and Price Club merged their operation after Price Club denied the merger with Walmart’s warehouse store chain.

Costco Wholesale Corporation faces tough competition from Walmart Inc. and Target Corporation. Food & Sundries, Hardlines, Fresh Foods, Softlines, and Ancillary are among the services provided by the company. The stock of Costco is traded on the NASDAQ Global Select Market under the ticker code “COST”. Costco had 273,000 employees worldwide in 2020. The company employed 156,000 full-time employees and 117,000 part-time workers.

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