Where is Costco opening new stores in 2025?

Costco was founded in 1983 by James Sinegal and Jeffrey Brotman in Seattle, Washington. However, its roots trace back to the Price Club, which Sol Price established in 1976 in San Diego as the first membership-based wholesale store. Price Club’s success inspired similar models, and Sinegal, who had worked with Sol Price, launched Costco with the same membership-based warehouse concept. Costco quickly gained popularity for offering a wide range of products in bulk at competitive prices, from groceries to electronics.

In 1993, Costco merged with Price Club, creating PriceCostco, which made it one of the largest wholesale club chains in the world. Eventually, the company simplified its name to Costco Wholesale in 1997. Over the years, Costco expanded both domestically and internationally, opening warehouses in Canada, the United Kingdom, Japan, South Korea, and Australia, among other countries.

Known for its low-overhead model, dedication to employee welfare, and exceptional customer loyalty, Costco has transformed from a single warehouse in Seattle into a global retail powerhouse. Its business model is built around providing high-quality goods at low prices by leveraging bulk purchasing, limited product selection, and an efficient store layout. Unlike traditional retailers, Costco operates with minimal advertising, streamlined displays, and a warehouse-style environment, all of which help reduce costs and allow savings to be passed directly to members. This strategy has attracted millions of loyal customers who value Costco’s commitment to consistently low prices and high-quality products.

A significant factor in Costco’s success is its dedication to employee welfare, which has set it apart in the retail industry. Costco offers competitive wages, comprehensive benefits, and opportunities for career advancement, creating a work environment that fosters long-term loyalty and low employee turnover. This commitment to fair treatment not only benefits its employees but also enhances the overall customer experience, as well-trained and motivated staff contribute to Costco’s efficient operations and high service standards. In an industry often criticized for low wages and high turnover, Costco’s focus on employee welfare has bolstered its reputation and attracted positive attention from consumers who appreciate socially responsible business practices.

Costco has also cultivated remarkable customer loyalty through its membership program, which offers exclusive access to a wide range of products, from groceries and household items to luxury goods, electronics, and travel services. Membership fees contribute significantly to Costco’s revenue and allow the company to operate on thinner margins than many competitors, further reinforcing its ability to keep prices low. Costco’s members renew their memberships at a rate of over 90%, demonstrating the high value they find in the benefits and savings offered.

Today, Costco operates hundreds of warehouses around the world, with locations in North America, Europe, Asia, and Australia. The company’s international expansion has brought its low-cost, high-value approach to diverse markets, adapting to local consumer preferences while maintaining its core principles.

Costco takes a thorough and strategic approach when selecting new locations for its warehouses, focusing on multiple criteria to ensure successful market entry and profitability. One of the primary factors it considers is population density, as areas with a large population base offer greater potential for memberships and higher sales volumes. Costco’s membership-based model benefits from a steady influx of shoppers, so it seeks locations that can sustain a high volume of regular customers. Additionally, the company evaluates median household income in the area, favoring communities with adequate purchasing power to support its bulk-buying model. Higher-income households are more likely to appreciate and utilize the value Costco offers, making them an ideal fit for the retailer’s selection of bulk items and premium products.

Projected population growth is also an essential consideration. Costco prefers regions where there is anticipated growth in the coming years, as this provides a more sustainable customer base and reduces the risk of stagnating sales. By entering markets with expanding populations, the company can position itself early as a preferred shopping destination, capturing loyal customers as the community grows.

Costco also looks carefully at the competitive landscape, typically avoiding markets that are already saturated with other wholesale or bulk retailers. Limiting direct competition helps Costco secure a dominant position in the area and provides a better return on investment. However, if competition is present, Costco assesses whether it can offer distinct advantages to draw customers away from other retailers, such as better pricing, exclusive products, or improved customer service.

Accessibility and visibility are critical factors in site selection as well. Costco often seeks out locations with high visibility, preferably near major highways or main roads to attract a broader customer base. Convenient access is essential for members who may travel further distances for bulk shopping trips, so being near easily accessible roadways increases the likelihood of regular visits. Costco also looks for ample space for parking, as its large warehouses draw a high volume of vehicles, especially on weekends and during peak hours.

Real estate costs and local regulations are another layer of consideration in the decision-making process. Costco weighs the feasibility of each location based on property costs and potential logistical expenses. The company also takes into account local zoning laws, environmental regulations, and any permit requirements that might impact the timeline and cost of opening a new warehouse. Some areas may have more complex regulatory frameworks that could slow down construction or increase costs, so Costco evaluates the overall financial implications carefully.

By analyzing these factors—population density, household income, growth potential, competition, accessibility, real estate costs, and regulatory considerations—Costco identifies locations that align with its business goals and are likely to drive sustained success. This data-driven, multi-criteria approach ensures that each new Costco location is positioned to attract a loyal customer base, generate strong sales, and contribute to the company’s broader growth objectives.

Costco plans to open 29 new warehouses in its 2025 fiscal year, which spans from September 2024 to August 2025, including 26 entirely new locations and three relocations of existing ones, resulting in a net gain of 26 stores.

While the company has not released a full list of locations for 2025, some confirmed openings include sites in Weatherford, Texas, expected in February 2025, as well as in Oakville, Ontario; Winnipeg, Manitoba; and Bingham Crossing near Calgary, Alberta. These locations represent a portion of Costco’s broader expansion across various states, including Arizona, California, Florida, Georgia, Illinois, Maryland, New Jersey, New York, Ohio, and Texas, as well as internationally in Canada, Mexico, the United Kingdom, South Korea, Japan, and Australia.

As of August 2023, Costco operates 859 warehouses worldwide, with 591 in the United States and 268 in other countries. In the fiscal year ending September 3, 2023, Costco reported net sales of $237.7 billion, marking a 7% increase from the previous year. The company’s net income for the same period was $5.8 billion, or $13.14 per diluted share, reflecting a 17% increase.