Profile: Costco Wholesale Corp (COST.OQ)
6 Dec 2013
Costco Wholesale Corporation (Costco), incorporated on May 12, 1987, with its subsidiaries is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, and through majority owned subsidiaries in Taiwan and Korea. Costco buys the majority of its merchandise directly from manufacturers and route it to a cross-docking consolidation point (depot) or directly to its warehouses. The Company's depots receive container-based shipments from manufacturers and reallocate these goods for shipment to its individual warehouses, generally in less than 24hours. Its typical warehouse format averages approximately 143,000 square feet. The Company's warehouses generally operate on a seven-day, 69-hour week. The Company carries an average of approximately 3,300 to 3,800 active stock keeping units (SKUs) per warehouse in its core warehouse business. Many consumable products are offered for sale in case, carton, or multiple-pack quantities only.
The Company's operations in Mexico were through a 50% owned joint venture (Mexico). The Company's online businesses at costco.com in the United States and costco.ca in Canada, provide its members additional products generally not found in its warehouses, in addition to services, such as digital photo processing, pharmacy, travel, and membership services. The Company's warehouses accept cash, checks, certain debit cards, American Express and a private label Costco credit card. The Company has two primary types of members: Business and Gold Star (individual).
The Company's categories of items include sundries, including candy, snack foods, tobacco, alcoholic and non-alcoholic beverages and cleaning and institutional supplies; hardlines, including major appliances, electronics, health and beauty aids, hardware, office supplies, cameras, garden and patio, sporting goods, toys, seasonal items and automotive supplies; food, including dry and institutionally packaged foods; fresh food, including meat, bakery, deli and produce, and ancillary and other, including gas stations, pharmacy, food court, optical, one-hour photo, hearing aid and travel.
The Company competes with Wal-Mart, Target, Kohl's, Amazon.com, Lowe's, Home Depot, Office Depot, PetSmart, Staples, Kroger, Trader Joe's, Whole Foods, CVS, Walgreens and Best Buy.
Costco Wholesale Corp
999 Lake Drive
ISSAQUAH WA 98027