Brianna Parker Company: Costco
CEO: Craig Jelinek
Year founded: 1983
Headquarter: Issaquah, Washington, United States
Employees (2021): 298,000 (worldwide)
Type: Public
Ticker Symbol: COST
Revenue (2021): $195.929 Billion
Profit | Net income (2021): $5.007 Billion
Products & Services: Groceries, candies, electronics, automotive supplies, sporting goods, watches, jewelry, apparel, books, houseware, furniture, health and beauty, office supplies, and equipment.
Competitors: Sam’s Club | BJ’s Wholesale Club | Amazon | Target | Kroger | Walmart
Did you know? Every Costco store houses only about 4,000 Stock Keeping Units (SKUs) compared to over 30,000 SKUs in other supermarkets.
Since its opening in 1983, Costco has become a household name in the U.S. for anything from grocery items to electronics, furniture, automotive supplies, clothing, health, and beauty products, and more. Costco has a global presence with 831 stores, out of which 574 stores are in the U.S., 105 in Canada, 29 in the UK, 40 in Mexico, 31 in Japan, 4 in Spain, 13 in Australia, 1 in Iceland, and two stores each in China and France.
Costco’s annual revenue reached $195.929 billion with a profit of $5 billion.
The in-depth analysis of Costco’s mission statement, vision statement, core values, and sustainability goals in this review will help you understand the reason behind the success of this wholesale giant.
Costco’s Mission Statement
“To continually provide our members with quality goods and services at the lowest possible prices.”
Costco’s Mission Statement Analysis
While Costco’s mission statement is concise and straightforward, here is a complete analysis of the statement.
- A Customer-Centric Mission
Costco’s primary objective is to offer its customers great products at unmatched prices. Almost every Costco store has more than 4,000 SKUs at any given point. The customer-focused sales strategy resulted in an 18% increase in Costco’s revenue to $195 billion. Costco’s mission is to offer 100% customer satisfaction; therefore, the company offers a full refund to the customers if they are unhappy with the product.
The top-notch customer service ensures hassle-free shopping experience for customers. No wonder Costco enjoys the position of an industry influencer when setting standards for the best prices for high-quality products.
- Low Prices Compromising on Quality
Costco thrives on offering products at a great bargain price but ensures that all the products in its warehouse are of good quality. No matter, the wholesale giant has won the hearts of millions of Americans by offering them good value for money for almost 40 years.
The overall product prices are lucrative enough for the customers to enter through the doors. However, Costco goes beyond offering more exclusive deals to the customers who sign up for its membership.
Costco’s Vision Statement
“A place where efficient buying and operating practices give members access to unmatched savings.”
Costco’s vision is to offer its customers a hassle-free, quick buying experience while continuously improving the operations for prompt availability of products and services. Costco is rigorously at work to provide a wide selection of products in various categories to cater to customers from all walks of life.
Costco’s Vision Statement Analysis
Here is a detailed analysis of Costco’s vision statement.
- Convenience at its Best
The vision of America’s favorite wholesale chain is to offer a one-stop shopping experience for its customers. It aims to provide anything a customer may want to buy under one roof. This will create convenience for customers to walk in with the shopping list and walk out with everything they had in mind.
- Savings
One thing is offering such a wide selection of products, but to do so at a pocket-friendly price is where Costco wins big. The vision is to ensure that the price customers pay at Costco’s stores is unmatched, which draws customers to Costco over its competitors.
- Costco Online
Speaking of convenience and saving, Costco’s online stores are a clear example. This is proof of Costco’s vision of the future, offering a wide array of merchandise at the best bargain prices, while keeping sustainability in mind.
Customers can now afford to shop from the comfort of their homes, and Costco will deliver it in the shortest possible time. This offers convenience and allows the customers to save time and money, especially when the economy is experiencing a downturn due to the pandemic.
Costco’s Core Values
Costco operates on four core values, which are analyzed below.
1. Obey the Law
Costco is one of the avid followers of all employment and industry laws. The business has a strong track record of managing its operations while staying compliant with the retail industry and employment sector standards.
2. Taking Care of the Members
As much as Costco is known for taking care of all its customers by offering great products at affordable prices, the chain goes a step further when taking care of its members. Customers who opt to join the membership program tend to enjoy further discounts and exclusive access offers.
3. Taking Care of the Employees
Costco is one of the most employee-centric businesses in the U.S. The business never shies away from recognizing and rewarding its employees’ exceptional performance. Therefore, Costco first extended its $2 per hour premium wage. Furthermore, the company permanently raised its hourly premium wages by $1 for all warehouse employees to encourage them.
4. Respecting the Suppliers
Making such a wide selection of products available at more than 800 stores nationwide would be impossible without flawless logistics and supply chain operations. Therefore, Costco values and respects its suppliers.
As the company says,
“Respect our suppliers their places of business. Honor all commitments. Protect all suppliers’ property assigned to Costco as our own. ”
Not only that, but Costco is also committed to supporting suppliers’ diversity. Therefore, Costco Wholesale is also working with several qualified women and minority-owned suppliers operating in the community.
References & more information
- Costco Wholesale, What is Costco’s Mission Statement and Code of Ethics, Costco
- Costco Wholesale (2022, May 6), Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2022, Costco
- Costco Wholesale (2022, March 23), Costco Wholesale Corporation Reports Second Quarter And Year-To-Date Operating Results For Fiscal 2022 and February Sales Results, Costco
- Costco Wholesale, (2021, August 29), 2021 Annual Report, Costco
- Costco Wholesale Corporate Profile, Costco
- Costco Wholesale, Supplier Diversity, Costco
- Costco Wholesale, Sustainability Ethics, Costco
- Featured image by Grant Beirute
Tell us what you think? Did you find this article interesting? Share your thoughts and experiences in the comments section below.
Kevin Johnson
Ava Abbott
You should take a look in to Puerto Rico’s stores, as the employees have been disrespecting the customers lately due to membership rules. As I understand rules are to be follow, the employees can be respectful when addressing the issues with the members. As one of your values says: taking care of the members. And your mission: The top-notch customer service ensures hassle-free shopping experience for customers.
It was good to read this article and be able to walk away, knowing that, you were not just reading something which sounds good, but, from experience and observations, one knows that , Costco is the real deal.