Monday, February 10, 2014

Costco Business Model Analysis

Keys from 10k...
We operate membership warehouses based on the concept that offering our members low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. 

We do not obtain a significant portion of merchandise from any one supplier.

We have two primary types of members: Business and Gold Star (individual). (My note: Executive members also) 

Net sales increased 11.5% to $97,062, driven by a 7% increase in comparable sales

We plan to open 27 to 30 net new warehouses in 2013.


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