Why Costco Makes Almost No Money on Groceries

Why Costco makes almost no money selling you groceries — and how it became a $400 billion company anyway. - The business model: razor-thin product margins (about 11 % gross vs 30 %+ at Walmart and Target), membership fees carrying most of the operating profit - The numbers by year: revenue, membership fee income and net income for the last 5 fiscal years - The $1.50 hot dog and the $4.99 rotisserie chicken as deliberate loss leaders - Membership renewal rate (around 90 %), how many members, the 2024 fee increase - Kirkland Signature: what share of sales, why it beats national brands - Comparison boards: Costco vs Walmart vs Target on gross margin, revenue per store, employee pay and turnover - Where it goes next: international expansion, the risk when membership growth slows Analytical, measured, Modern MBA tone. Every number sourced.