What: Costco's strategic expansion plan includes nine new warehouses worldwide in 2025, with six US locations opening simultaneously in March, demonstrating strong market confidence.

Why it is important: This coordinated expansion demonstrates Costco's operational efficiency and market strength, particularly significant as it outpaces larger competitors while maintaining its membership-based model and core values.

Costco's ambitious expansion plans for 2025 include the simultaneous opening of six new warehouses across the United States in March, with an additional US location planned for April and more international stores in the pipeline. The new US locations will be strategically positioned in California, Texas, Michigan, and Massachusetts, reflecting a carefully planned geographical distribution. This expansion comes as Costco demonstrates remarkable market performance, growing 7% faster than its largest competitor, Walmart, over the past five years. The company's recent quarterly performance shows robust health, with net sales growing 7.5% year over year to USD 60.99 billion and US comparable sales rising 7.2%. Notably, Costco's pharmacy business has achieved record-breaking prescription growth exceeding 19%, while its logistics division completed nearly one million deliveries in the first quarter. The company's steadfast commitment to its corporate values, including maintaining its diversity, equity, and inclusion programme despite external pressure, has contributed to increased foot traffic and sustained customer loyalty.

IADS Notes: Costco's latest expansion announcement builds upon a year of strategic decisions and market success. The company's firm stance on maintaining DEI initiatives in January 2025  has positively impacted customer engagement, while the July 2024 membership fee adjustment to USD 65 for basic members  demonstrated pricing power without deterring growth. This contrasts with Walmart's approach of achieving success through technological innovation and revenue diversification to reach USD 681 billion in revenue . Costco's focused strategy on core retail operations has proven effective, outpacing its larger rival's growth by 7% while maintaining its distinctive customer service model.

Costco plans to open 6 new stores