History of Costco: Company timeline and facts

Core Insights - Costco operates with a limited selection of approximately 4,000 stock-keeping units (SKUs), significantly fewer than the 30,000 typically found in supermarkets, focusing on quality, price, brand, and features [1] - Despite rising costs due to inflation, Costco has maintained the price of its hot dog and soda combo at $1.50 since its introduction in 1985, subsidized by sales and membership revenue [2] - The company offers three membership types: Business ($65), Gold Star ($65), and Executive ($130), with over 145 million members, more than double that of its closest competitor, Sam's Club [3] Company History - Costco was founded in 1983 by James Sinegal and Jeff Brotman, focusing on a members-only retail model, and quickly expanded its warehouse locations [4][5] - The merger with Price Club in 1993 created a significant player in the warehouse retail industry, initially named PriceCostco, which later became simply Costco [5][18] - The company has seen substantial growth since its inception, with sales exceeding $1 billion by 1984 and continuing to expand internationally [4][18] Leadership and Expansion - Costco has had three CEOs since its merger: James Sinegal (1983–2011), W. Craig Jelinek (2012–2023), and Ron Vachris (2024–present), with each contributing to the company's growth and expansion [8][10][11] - Under Jelinek, Costco's sales surpassed $100 billion in 2013, and the company successfully navigated the challenges posed by the COVID-19 pandemic [10] - Vachris has ambitious plans for expansion, targeting the opening of 28 new stores in the U.S. and internationally in 2026, as part of a $6.5 billion expansion strategy [11][12] Financial Performance - Costco's revenue from membership fees has shown consistent growth, reaching $5.3 billion in 2025, with total sales approaching $250 billion [39] - The company’s net income exceeded $8 billion in 2025, reflecting its strong market position and operational efficiency [39] - Costco's market capitalization has grown significantly, surpassing $475 billion by 2025, indicating robust investor confidence and market performance [39]