Costco
American membership warehouse club selling bulk goods, the largest of its kind in the world, with over a hundred million cardholders.
9 figures on Costco, drawn from 3 Modern MBA case studies.
The figures
US dollars1
| Against its own chart | |||
|---|---|---|---|
| Annual revenue in billions, 2023–24 | $255B | 4th of 9 · top $648B | Why self-checkout didn't replace cashiers |
Percentages8
| Against its own chart | |||
|---|---|---|---|
| Cost of merchandise as a share of revenue, ten-year average | 87% | 1st of 10 · top 87% | Why self-checkout didn't replace cashiers |
| Cost of merchandise against labor and rent, as a share of revenue, ten-year average · Cost of merchandise | 87% | 1st of 7 · top 87% | Why self-checkout didn't replace cashiers |
| Gross margins of technology companies against retailers, 2019 | 13% | 10th of 10 · top 82% | Why self-checkout didn't replace cashiers |
| Cost of merchandise against labor and rent, as a share of revenue, ten-year average · Labor & rent | 10% | 7th of 7 · top 26% | Why self-checkout didn't replace cashiers |
| Annual operating margin, 2024 | 4% | 9th of 12 · top 25% | Why marijuana legalization never paid off |
| Average operating margin over the last decade | 3.2% | 6th of 8 · top 8.9% | Why self-checkout didn't replace cashiers |
| Operating margin of the leading data-driven Fortune 500 companies, 2013 against 2023 · 2013 | 3% | 11th of 12 · top 40% | Why AI is just big data again |
| Operating margin of the leading data-driven Fortune 500 companies, 2013 against 2023 · 2023 | 3% | 9th of 12 · top 36% | Why AI is just big data again |
Case studies covering Costco
Case study — Retail & brandsWhy self-checkout didn't replace cashiersAmazon's cashierless store was a thousand people in India watching cameras. Every retailer copied it anyway.15 min read
Case study — TechnologyWhy AI is just big data againBig data was sold for a decade and produced nothing. The same players are running the identical playbook with AI.15 min read
Case study — Retail & brandsWhy marijuana legalization never paid offEvery public cannabis company loses money. Three self-funded LA shops do not. Being unable to lose money is the advantage.15 min read