Costco Chairman Tony James shared in a recent interview with Chief Executive Magazine that after being on Costco’s board for 36 years, he still finds attending meetings fascinating. He believes that Costco provides valuable insights into consumer trends, including what consumers are purchasing or not purchasing.
One popular item that Costco sells in addition to their famous $1.50 hot dog combo is 10-carat diamonds and gold bars. According to Wells Fargo analysts, Costco sells up to $200 million worth of gold bars monthly. Notably, a Porsche dealer in Seattle sold out their cars within a week when they were showcased at Costco.
Costco, with around 137 million paying members in 2024, caters to both average-income earners and affluent individuals, with some members having twice the average income. This diverse membership allows Costco to achieve remarkable sales, such as being the leading retailer of high-priced items like Dom Perignon Champagne.
Data from analytics firm Numerator reveals that affluent millennial and Gen X households prefer shopping at Costco over competitors. This preference is attributed to the company’s ability to offer quality products at competitive prices, including luxury items like Rolex watches, 10-carat diamonds, and Dom Perignon Champagne.
Despite their focus on luxury items, Costco’s Kirkland brand is also highly popular and is considered the second-largest brand overall. In January 2025, Costco reported net sales of $19.51 billion, a 9.2 percent increase from the previous year.
Costco’s success in catering to a diverse consumer base, offering a wide range of products at competitive prices, has solidified its position as a leading retailer in the market.
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