costco-revenue

Costco Revenue

Business / By / June 13, 2023

Costco generated almost $227 billion in revenue in 2022, compared to nearly $196 billion in revenue in 2021, and over $166 billion in revenue, in 2020.

Key Stats

  • Revenue increased steadily from $141.57 billion in 2018 to $226.95 billion in 2022, representing a CAGR of approximately 13% over the period.
  • Net income increased from $3.13 billion in 2018 to $5.84 billion in 2022, indicating strong profitability for the company.
  • The number of members increased steadily from 39 million in 2013 to 65.8 million in 2022, representing a CAGR of approximately 9% over the period.
  • Revenue per employee increased steadily from $577,861 in 2018 to $746,559 in 2022, indicating improved productivity and efficiency.
  • Revenue per member remained relatively stable over the period, with a slight increase from $61 in 2018 to $64 in 2022, indicating that the company is generating consistent revenue from its customer base.

Related Visual Stories

Costco Business Model

costco-business-model
Costco’s strategy can be summarized as a selection of high-quality items sold in bulk sized in warehouses around the US and Canada primarily and with a substantial part of its business focused on selling merchandise at a low-profit margin. Costco also uses a single-step distribution strategy to sell its inventory before it gets paid to suppliers. Costco generated almost $227 billion in revenue in 2022, of which $5.84B came from 65 million paid members.

Costco SWOT Analysis

costco-swot-analysis
Costco is a large American multinational corporation with a focus on low-cost, membership-only retail warehouse clubs. Costco is the 4th largest retail operator in the world, operating 785 warehouses in 10 different countries. Indeed, it has enjoyed rapid success growing from zero to $3 billion in sales within six years.

Who Owns Costco

who-owns-costco
Costco runs a high-quality, low-priced business model powered by its memberships that draw customers’ loyalty and repeat purchases. Top institutional investors comprise The Vanguard Group, 8.79%, and BlackRock, 6.77%. Top individual shareholders include Craig Jelinek, Chief Executive Officer of Costco, and Charles T. Munger (Warren Buffet partner and co-owner of Berkshire Hathaway).

Wholesale Business Model

wholesale-business-model
The wholesale model is a selling model where wholesalers sell their products in bulk to a retailer at a discounted price. The retailer then on-sells the products to consumers at a higher price. In the wholesale model, a wholesaler sells products in bulk to retail outlets for onward sale. Occasionally, the wholesaler sells direct to the consumer, with supermarket giant Costco the most obvious example.

Costco Financials

costco-financials
Costco generated almost $227 billion in revenue in 2022, compared to nearly $196 billion in revenue in 2021, and over $166 billion in revenue, in 2020. Costco also generated $5.84 billion in net income in 2022, compared to $5 billion in 2021 and $5 billion in 2020.

Costco Employees

costco-employees
Costcohad 304,000 employees in 2022, compared to 288,000 in 2021 and 273,000 in 2020.

Costco Members

Costco Memberships
Costo had 65.8 million paid members in 2022, compared to 61.7 million in 2021 and 58.1 million in 2020.

Costco Membership Revenue

costco-membership-revenue
Costco generated $4.2 billion in membership revenue in 2022, compared to $3.87 billion in 2021 and $3.54 in 2020.

More Resources

About The Author

Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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