This is a historical analysis of Costco Wholesale Corporation's fiscal year ended September 1, 2024. It is not a current store guide or a forecast. A SWOT classifies internal capabilities and external conditions; the annual report supplies the factual baseline.
The fiscal 2024 baseline
Costco reported $249.6 billion in net sales and $4.8 billion in membership fees for fiscal 2024. It ended the year with about 136.8 million cardholders, and its annual report described a 90% renewal rate. These figures show the scale of both merchandise and membership relationships, but they do not mean that every cardholder is a separately paying household.
Costco opened 29 net new warehouses in the year. Its results cover 52 weeks versus 53 weeks in fiscal 2023, a difference worth accounting for when comparing annual growth. Membership prices in the United States and Canada increased in September 2024, at the start of the next fiscal year.
Strengths
01
Membership relationship
Fees provide a revenue stream distinct from merchandise sales, while renewals signal that many customers find the proposition worthwhile. Renewal is a useful indicator, not a guarantee of future visits or spending.
02
Focused value proposition
A limited-selection warehouse model can simplify buying and support high sales volume per item. Its effectiveness depends on keeping prices, quality, availability, and member trust aligned.
03
Operational scale
Large sales and an expanding warehouse network can improve supplier access and brand visibility. Scale can also magnify disruptions when a popular item or system fails.
Weaknesses and dependencies
A membership model asks customers to pay before shopping. That creates a hurdle for occasional shoppers or markets where the value proposition is less established. Warehouse operations also need large sites, inventory, labor, and a steady flow of high-volume purchases. New locations require capital and careful local demand assessment.
Low merchandise margins and competitive pricing leave little room for poor inventory choices or persistent cost increases. Membership income is important, but it should not be used to imply that merchandise operations can be ignored. The annual report also identifies dependence on vendors, logistics, and information systems.
Opportunities and threats
Potential opportunities include carefully chosen new warehouses, improved digital shopping and fulfillment, and more services that members genuinely value. A new country or channel may have different economics; an opportunity is not the same as a confirmed return.
Threats include competition from other retailers and online sellers, inflation or consumer weakness, supply interruptions, wage and transport costs, cybersecurity events, and changing local rules. A competitor can copy a price or product, but keeping member trust over time is a broader challenge. Assess each threat against later reporting rather than assuming the 2024 picture still holds.
Questions for a current assessment
Check current paid memberships, renewal rates by market, comparable sales, warehouse returns, and the contribution of e-commerce. Distinguish the 2024 facts above from strategic interpretation. For an investment or supplier decision, use newer filings and direct operating evidence.