Costco is a large self-service store that sells groceries, medications, household goods and/or clothing. It is the fourth largest supermarket by sales. That’s largely because it operates as a membership retailer. To shop at Costco’s stores, customers need to purchase a membership. In return for the membership, they’re able to access premium brands and incredible discounts.
Costco was founded in 1983 when it opened its first warehouse in Seattle. In 1993, Costco and Price Club merged operations. The combined company took the name PriceCostco. Although Costco considers Target more of its competitor, Sam’s Club has its sights set on Costco. Both retailers sell almost the same products at discounted prices for membership cardholders.
Costco’s operating philosophy is keeping product costs down to offer savings to members. Most Costco stores have ancillary businesses like pharmacies and gas stations. Costco makes most money through memberships rather than products. Costco doesn’t spend money on advertising. This allows higher profits as products advertise themselves.
Is Costco considered a grocery store? Yes, Costco is categorized as a retailer that specializes in several types of goods including food, making it a type of supermarket.
What is considered a supermarket? A large self-service store like Costco that sells groceries and various other goods can be considered a supermarket.