Costco Wholesale Corporation

Case Study
Pages 9 (2259 words)
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Costco is a leading wholesale retailer in the world with revenue about $64.4 billion. Costco follows a low price sales model. This model differs from other retailers because the company proposes high volumes of its products for Costco members only. "Costco was also the world's largest seller of fine wines ($385 million out of total 2006 fine wine sales of $805 million).4 tires, housewares, luggage, appliances, clothing, and detergent-were designed to be of equal or better quality than national brands" (Thompson p 2008, p.


Though less readily measurable, it is apparently accompanied by a shrinking of activities for the few remaining general merchandising wholesalers and a loss of sales for small stores carrying women's and children's apparel, particularly in low and medium-quality lines. Costco is a closed-door store which allows only "members" access to the store through membership eligibility as defined by rather broad classifications of government employees, teachers, union members, or employees of government contractors (see Appendix 4). The chain carries a wide range of soft goods and apparel, but also gives major attention to furniture, appliances, food, and automotive supplies. Several of the closed door operations have recently opened their doors to the general public. ...
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