Retailers choose a brand name representing and communicating their brand’s mission, value and goal.
For a brand like Costco, the brand name is associated with lower prices. Does this have anything to do with the name? What does Costco stand for? Here’s all you need to know!
What Does Costco Stand For In 2023?
Costco or Costco Wholesale Corporation operates on a strategy that allows it to sell products at a lower price than competitors in 2023. Because of this, the name Costco comes from the words “Cost Company.” This American multinational corporation operates a membership-only warehouse club. Also, Costco is the fifth largest retailer in the world.
To learn more about Costco, what it stands for, its revenue, range of products, and history, read on!
Why Is Costco Called Costco?
Costco was established as a brand to help customers manage their spending, hence Costco, which stands for Cost Company.
In addition, this also came from its merger with Price Club in 1993.
What Is Costco’s History?
Before this retail store became Costco, its predecessor, Price Club, was opened at Morena Boulevard in San Diego in 1976 by Sol Price and his son.
That said, Price Club was meant for small business owners who paid an annual membership fee and bought items in bulk.
As the industry changed, Costco opened its first warehouse in 1983 in Seattle, and Jim Sinegal and Jeffrey H. Brotman started this warehouse. By 1985, the company had gone public.
Initially, the company had its headquarters in Seattle but moved to Kirkland in 1987.
In 1993, Price Club and Costco merged operations since they had a similar business model and were of the same size.
With this merger, they became the world’s most successful warehouse club. When the Price brothers left the merger, Costco renamed all the Price Club locations in 1997.
What Is Costco Known For?
Compared with other retailers, Costco is known for some unique things. Let’s look at some of them!
Costco is known for its reliable pricing policy. Overall, the business model ensures that customers get high-quality luxury products at the lowest price possible.
In addition, Costco has private label products under the Kirkland Signature brand, which are affordable, despite being manufactured by big-name brands.
Warehouse Club Membership
This American multinational operates as a membership-only warehouse club.
Further, Costco operates as a profitable membership-driven and has continued to gain a lot of members over the years.
Since 2014, Costco’s membership has grown from 76.4 million to more than 111 million people in 2021.
How Many Warehouses Does Costco Have?
Currently, Costco operates 828 warehouses, which include:
- 572 stores in the US and Puerto Rico
- 40 stores in Mexico
- 105 stores in Canada
- 30 stores in Japan
- 16 stores in Korea
- 29 stores in the UK
- 14 stores in Taiwan
- Four stores in Spain
- 13 stores in Australia
- Two stores in China
- Two stores in France
- One store in Iceland.
Moreover, out of all the warehouses in the US, California has the most locations at 131 stores. However, Texas, Washington, Florida, Illinois, and New Jersey also have many stores.
How Many Products Does Costco Have?
Compared to other supermarkets with 30,000 stock-keeping units, Costco has 4,000 stock-keeping units.
That said, Costco chooses its products based on the price and quality to ensure that its customers get the best quality.
Apart from the national brand names, Costco also has a private label brand, Kirkland Signature, which has products from groceries to clothing to health & beauty, pet food supplies, etc.
Is Costco A Good Company?
Costco has been rated highly by consumers thanks to its level of customer service.
According to the American Customer Satisfaction Index (ACSI) released in 2019, Costco took the top spot due to its culture that focuses on the customer.
In addition, Costco offers benefits to its part-time and full-time employees, such as affordable health coverage, retirement plans, and extra checks depending on the years of service.
Is Costco Affordable?
Costco competes with retailers such as Walmart, which keeps its prices lower. Overall, Costco is much cheaper, thanks to its focus on offering private label products.
Therefore, Costco might be the best option if you want to do your grocery shopping on a budget.
Who Owns Costco?
Costco Wholesale Corporation is a merger of Price Club and Costco. As a publicly-traded company, Costco is listed on NASDAQ.
Therefore, the future of the company is usually decided by the shareholders.
Costco operates on a strategy that allows it to sell products at a lower price than its competitors. Because of this, the name Costco comes from the words “Cost Company.”
Further, this American multinational corporation operates a membership-only warehouse club. As of 2020, Costco was the fifth largest retailer in the world.
Of course, Costco stocks a range of products in all its stores. Also, it has a private label brand, Kirkland Signature, which allows it to offer customers lower prices on products.
Currently, the company has operations in the US and other countries, including Canada, the UK, Korea, and Australia.