Analysis of Costco Essay
Costco was founded on September 15th, 1983 by Jeffery Brotman and James Sinegal (Chesley). It became renowned for its warehouse club retail model, pioneered by former competitor Price Club. After a major merger in 1993 with Price Club, Costco expanded to 206 locations, doubling the size of the company (“Costco Wholesale Historical Highlights”). The decision was based on the fact Costco and Price Club shared similar business philosophies, operations, and the looming threat of being taken over by Sam’s Club. Operating as PriceCostco, international expansion began with development of stores in Mexico, the opening of two stores in England, and the licensing of a Price Club in South Korea ("Costco Wholesale Corporation").
During 1994, …show more content…
Product Line/Services Offered
The products and services Costco offers have gradually expanded over the years. Initially, stock was primarily composed of non-perishable boxed products that were dispensed by tearing the shrink-wrap off pallets ("History of Costco”). The selection has grown to include a vast variety of products, including home appliances, dairy, seafood, flowers, fresh produce, baked goods, art, clothing, books, computer software, meat, home electronics, coffins, tires, wine, furniture, and jewelry ("Costco Wholesale Corporation"). Select locations offer a liquor section as well, although it is usually separate from the main store to abide by state liquor license laws. Costco also has their own store brand, Kirkland Signature, which is often branded or co-branded on items such as water bottles or sugar.
In addition to products, Costco also offers a number of services. Travel agency, optometrists, photo processing, vehicle repair,