Reported 3 days ago
In fiscal 2024, Costco generated an impressive $254 billion in revenue, making it one of the largest businesses globally. However, less than 2% of this revenue, derived from membership fees totaling $4.8 billion, is crucial for understanding its business model. Despite a low operating margin of 3.65%, Costco's strategy focuses on attracting loyal customers through low prices, with membership fees providing the majority of its profit. With a high member renewal rate and increasing new memberships, particularly among younger consumers, Costco's membership base is key to its sustainable success.
Source: YAHOO