Costco Wholesale is a membership based warehouse store that strives to provide quality products at the lowest possible price. They believe this is possible by following its Code of Ethics, which include obey the law, take care of its members, take care of its employees, and respect its vendors.…
Costco Wholesale is the seventh largest retailer in the world and in 2006, its total sales reached close to $59 billion dollars, which came from its 496 warehouse locations operating in the United States, Canada, Puerto Rico, Taiwan, Japan, Korea, Mexico, and the United Kingdom (p. 216). This was mainly due to the business and merchandising savvy of Jim Sinegal, the CEO and cofounder of Costco.…
Costco is a members-only warehouse club retailer that provides low prices on a limited selection of nationally branded and selected private-label products.…
When you ask an average American about a wholesale dealer, one name stands out, Costco Wholessale Corp. They are one of the biggest wholesale corporation in US. That is very impressive considering they have only been in the industry for about 30 years. They are member based and provide quality goods and services to member only. Their members not just every day people but people who run small business so not only customers buy their product but sell them to others in their own stores as well. While their competitor, Wal-Mart, looks to provide lowest price but inlike Costco’s they overlook the quality. While BJ tries to look pretty to their customer, Costco pay less attention to their look and more to provide the lowest prices for their members. From 1997 to 2001, Wal-Mart store numbers were increased by 53, BJ 's stores went up by 50, but Costco went up by 91.…
Today Costco has 622 stores worldwide with stores in Europe, Australia, Canada, Mexico, Taiwan, Japan, South Korea, and of course the United States. Costco’s trademark brand of sales of its product is in bulk. So it has only one or two choices of each item in each category because research has shown too many items in each category can confuse customers and they may not make a purchase. Feedback from customers has shown their chief complaint is not being able to buy more items individually.…
Costco was founded in 1983, went public in 1985 and in 1993 merged with Price Club, a successful membership warehouse. With over 400 membership warehouse stores serving more than 38 million members, Costco is now the largest wholesale club operator in the US.…
6/18/2015 COSTCO WHOLESALE IN 2012 : MISSION, BUSINESS MODEL, AND STRATEGY Group B10 – (b) MBA/14/3633 – W.A.D. Udaya Kumara MBA/14/3567 – H.A.D.S. Perera MBA/14/3486 ‐ Kesharika Goonawardena MBA/14/3444 ‐ Darshani R.K.N.D Question 1 : How well is Costco performing from a financial perspective ? Illustrate your answer by using key financial ratios. Financial Ratio Groups Profitability Ratios Liquidity Ratios Leverage Ratios Investor Ratios 1 6/18/2015 Profitability Ratios Costco Growth Strategy : To achieve 5% sales growth Source : Authors Source : Authors Costco has maintained a higher revenue growth compared to itscompetitors .…
Cost Club is a growing retailer, similar to Super Wal-Mart or Target. It provides discount merchandise and supermarket products in large stores located in many areas of the United States. Cost Club is administratively organized into regions, and each region is permitted to develop its own operational policies, as long as the bottom line of low cost and reasonable service to customers is maintained. There are many strong competitors to Cost Club, with some regions experiencing more competition than others.…
Costco Wholesale Corp is a big box retailer selling mass quantities of items at Wholesale prices. They are a very consistent company, with constant growth and profitability. They show no major signs of corrupt business practices, and for that reason have been known as one of the best businesses. They currently operate with 174000 employees, which are paid well and have low employee turnover. They do their business in 608 warehouses internationally, and continue to grow. Costco is a highly profitable, well functioning business. Costco only marks up their item’s selling price 15% from original cost, which gives them a low profit margin of 1.7%. With such a low margin, it brings into question how Costco is able to make so much money. There are a variety of ways that Costco makes money: Membership Fees, Rapid Inventory Turnover, Affordability, private label brands, premium products and effective use of square footage.…
Costco's warehouses present one of the largest and most exclusive product category selections to be found under a single roof. Categories include groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, house wares, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment. Costco is known for carrying top quality…
Grocery, Inc. Grocery, Inc. is a retail grocery store chain based in Any State; U.S.A. Grocery has stores throughout the United States. Grocery has written contracts with many different vendors to purchase the products they sell in their stores. Vendors range from individuals to international corporations. Tom works as the produce manager for the store in My Town, U.S.A. Jeff, 17 years old, is spending his summer vacation working for Tom in the produce department.…
Costco used to be a store under the Price Club name and it focused on serving small business at the very beginning. However, the company found Costco can attract a lot of non-business customers. According to Costco’s official website, Costco and Price Club merged in 1993 and combined together. It had 206 stores and earned $16 billion annually. In addition, Costco mentioned that the operating philosophy is lowing down the cost of goods sold and saving their customers’ money. Because of this principle, Costco changed the retail world and their membership help Costco become a successful company.…
COSTCO, a 500-warehouse membership retail chain, faced a major challenge. The strategic plan called for opening 35-40 new warehouses per year over a 5-year period. To meet this plan they needed 5,000 additional leaders and they needed to grow them quickly from within.…
Costco's co-founder and chief executive officer, Jim Sinegal, is the son of a coal miner and steelworker.In 1954,when he was 18 years old,a friend asked him to help unload mattresses for the store called Fed-Mart.That one-day job turned into a career.He become a protege of Fed-Mart's chairman, Sol Price, and soon rose to executive vice-president for merchandising.Mr.Price invented the idea of high-volume warehouse stores that sell a limited number of products.Sol Price later sold Fed-Mart to a German retailer in 1975,and then Mr.Sinegal left and helped Mr.Price start a new warehouse company,Price Club.In September 1983,a Seattle entrepreneur,Jeffrey Brotman,helped Mr.Sinegal create Costco Wholesale Corporations.The company began with a single store in Issaquah,outside of Seatte, and by 2005 it had a total of 460 warehouses in many different countries. Costco Wholesale Corporation operates a chain of membership warehouses that sell a wide variety of name-brand products, as well…
Costco is open to the public and also features privately owned brands like Kirkland signature. Costco Wholesale Corporation is a membership-only warehouse club and is the second largest retailer in the United States, the seventh largest retailer in the world and the largest membership warehouse club chain in the United States. Costco employs 126,929 full and part-time workers in the United States, and 185,207 full and part-time employees worldwide. Costco offers lower prices and better values buying in bulk from wholesalers. At the Costco I work at, we run a tight operation with extremely low overhead which enables us to pass on savings to our members. Coupons are a huge part of our sales, as pamphlet books are mailed to our member’s households every other week.…